The mining and metallurgical group Metinvest is seeking a new investor to finance a EUR3 billion ($3.4 billion) steel plant in Italy, as the Ukrainian group seeks to reduce its liabilities, according to Bloomberg.
According to the agency, the group is seeking an additional partner for the project at the site of a former steel mill in Piombino on the Tuscan coast. The company wants to strengthen its financing “in light of war-related risks, given Metinvest’s significant operational presence in Ukraine.”
However, as noted, some potential lenders have become more cautious due to heightened geopolitical risks, including the recent conflict in the Middle East.
“As for the debt capital structure, we have good visibility on it, and we are continuing our dialogue with financial institutions to finalize this matter as well,” a Metinvest representative told the agency.
It is worth noting that the Italian government has designated this initiative as a “national strategic project,” and Metinvest Adria—a joint venture (JV) established last year with the Danieli Group to build this state-of-the-art facility—refers to the project as “the revival of steel in Italy.” It is expected to produce 2.7 million metric tons of low-carbon steel per year and create 1,100 jobs in the region.
According to the initial plan, financing was to consist of debt, government grants, and contributions from the JV partners to the share capital. Metinvest agreed to contribute more than EUR500 million, or 75% of the total equity, but is now seeking to reduce this amount to less than EUR300 million.
Bloomberg adds that Metinvest reported receiving “significant support from all stakeholders,” particularly from the Italian government, which has already approved grants and loan guarantees and allocated funds for the construction of a new berth at the Port of Piombino.
“Metinvest’s financial position deteriorated after the company had to use its cash reserves in April to redeem $428 million in bonds. Some of the company’s assets in Ukraine were lost or damaged as a result of the Russian invasion. Operations were also negatively impacted by high energy costs and a labor shortage,” the report states.
In addition, the report notes that S&P Global Ratings upgraded Metinvest’s credit rating this month following the bond repayment, but maintained a “negative” outlook on the business, emphasizing the need to build up cash reserves. According to S&P, Metinvest’s free cash flow stood at $150 million as of early May.
Metinvest is exploring the possibility of raising long-term financing and recently held meetings with investors to discuss the pricing and structure of a potential bond issuance. Like most Ukrainian companies, Metinvest has not tapped the bond market since the start of the full-scale invasion in 2022. Despite this, the group has managed to meet its financial obligations and reduce its debt burden, according to a Bloomberg report.
Metinvest is a vertically integrated group consisting of mining and metallurgical enterprises. Its facilities are located in Ukraine—in the Donetsk, Luhansk, Zaporizhzhia, and Dnipropetrovsk regions—as well as in the European Union, the United Kingdom, and the United States. The holding company’s main shareholders are the SCM Group (71.24%) and Smart Holding (23.76%). Metinvest Holding LLC is the management company of the Metinvest Group.
JSC “Kremenchuk Steel Works” (KSZ, Kremenchuk, Poltava Oblast), part of the industrial assets of the TAS Group, ended 2025 with a net loss of UAH 148,080,549, whereas profit for 2024 amounted to UAH 369,337,168,
According to KSZ’s announcement in the NSSMC’s disclosure system regarding the remote general meeting of shareholders to be held on April 24, the agenda includes 12 items, among which are the supervisory board’s report for 2025, approval of measures based on the review’s findings, and adoption of relevant resolutions.
It is also planned to approve the company’s annual report and the audit report for 2025, approve the results of financial and economic activities and determine the procedure for covering losses, as well as approve the annual reports for 2023–2024 in their new versions.
In addition, the meeting will approve significant transactions. Shareholders will also terminate the powers of the members of the supervisory board and elect new ones.
Draft resolutions, copies of which are available to the Interfax-Ukraine agency, provide for the approval of the loss for 2024, while shareholders are proposed to cover it using the company’s retained earnings from previous years. No dividends will be declared or paid.
It was previously reported that KSZ recorded a net profit of 369,337,168 UAH in 2024, 131,086,773 UAH in 2023, in 2022—UAH 50.281 million, while the company ended 2021 with a net loss of UAH 56.833 million and 2020 with a loss of UAH 22.81 million.
The Kremenchuk Steel Foundry is Ukraine’s leading foundry specializing in the production of steel castings for freight cars and heavy-duty trucks.
According to the State Registration Service data for the fourth quarter of 2025, Indeko LLC and Nexum Trade LLC each hold 24.2210% of the shares in KSZ JSC, FinEuroVector Financial Company LLC holds 18.8392%, and the financial company “Alfa Cross” holds 24.9%.
The authorized capital of JSC ‘KSZ’ is UAH 132.123 million, and the par value of a share is UAH 0.25.
The “TAS” Group was founded in 1998. Its business interests span the financial sector (banking and insurance segments), industry, real estate, the agricultural sector, and venture projects. The founder and major shareholder of the group is Serhiy Tihipko.
