JSW Steel Italy SRL has signed a memorandum of understanding (MoU) with the Italian government to restart production at Piombino plant with an investment of €140 million.
JSW Steel will double the current rail making capacity to 6 lakh tonnes per annum at Piombino to reduce imports and boost local employment, JSW Steel said.
The investments will make the rail mill more efficient and modern. The project envisages setting up of tandem mill, head hardening facility and increase the length of rails from 108 to 120 metres.
The MoU will restart steel production to safeguard employment and reduce the import of steel products into Italy. It provides for four months of collaboration for execution of the programme agreement.
Sajjan Jindal, Chairman, JSW Group, said the Italian steel industry is undergoing a transformative stage and the investment will make the Piombino Rail mill, most modern, technologically advanced and best in class rail mill in the Europe.
The project will step up domestic production which will result in reduction of imports of steel products in Italy, he said.
In 2018, JSW Steel Italy acquired entire shares of Aferpi S.p.A, Piombino Logistics and 69.27 per cent of the share capital of GSI Lucchini S.p.A from Cevitaly S.r.l for €55 million.