Global steel capacity shifts: legal battles in Italy and new investment in Asia

MEPS International’s latest global steel production and capacity round-up points to a period of adjustment rather than expansion across the steel industry. The update highlights a mix of ownership changes, targeted investments and trade defence actions, with few signs of large-scale greenfield capacity additions.

Among the most significant developments are the ongoing restructuring of Acciaierie d’Italia in Italy, the transfer of Poland’s Huta Częstochowa into state ownership, new investment commitments in the United States and Southeast Asia, and further steps toward lower-carbon steelmaking in China.

Europe: Trade defence and restructuring

In the UK, the Trade Remedies Authority has withdrawn Vietnam’s exemption from the safeguard tariff-rate quota on rebar after Vietnamese material exceeded the WTO’s 3% import threshold for developing countries. Vietnamese-origin rebar will now count against the UK’s residual quota until the current safeguards expire in June. The authority is also reviewing whether to end safeguards on aluzinc, aluminised flat steel and quarto plate, citing the absence of domestic production, with a decision expected in February and possible effect from April. In parallel, it has proposed narrowing the scope of its antidumping investigation into South Korean hot rolled plate by excluding widths of 2,500 mm and above, reflecting limited UK production capacity and the needs of downstream users.

Italy’s long-running Ilva case is moving toward another turning point. Acciaierie d’Italia is expected to be acquired by US investor Flacks Group between late February and April 2026. The plan centres on the Taranto works, where Flacks intends to build six million tonnes per year of capacity based on two electric arc furnaces and one blast furnace. The Italian state would retain a 40% strategic stake, while Flacks has pledged €5 billion for restructuring and decarbonisation. At the same time, the company’s state-appointed administrators have filed a €7 billion damages claim against former owner ArcelorMittal, which has responded with its own €1.8 billion claim against the Italian government over alleged policy and legislative failures.

In Germany, Thyssenkrupp Steel Europe has completed the modernisation of the coiler area at hot strip mill No.1 in Duisburg. Finished in December, the project replaced ageing automation hardware and legacy software on the mill’s three downcoilers, improving reliability, diagnostics and overall process stability through faster control systems and modern communication networks.

Turkey has also moved on trade defence. The authorities have imposed a definitive 3.95% antidumping duty for five years on imports of cold rolled flat stainless steel from China, after an investigation found dumped imports had caused material injury to the domestic industry. Imports from Indonesia were deemed negligible and will not face duties, while the new levy is applied on top of Turkey’s existing 12% import tariff.

Poland: State takeover of Huta Częstochowa

Poland’s Ministry of National Defence has taken Huta Częstochowa into state ownership, completing the acquisition of the plate producer’s assets in December. The site, now under the control of the Military Property Agency and operated by state-owned Węglokoks, includes an electric arc furnace with around 840,000 tonnes per year of crude steel capacity and a heavy plate mill. The operator is targeting production of up to 500,000 tonnes in 2026 and is seeking certification to supply armour plate for defence applications.

North America: Investment at Gary Works

In the United States, US Steel has approved $350 million in funding to upgrade its Gary Works integrated plant in Indiana. A central element is the relining of blast furnace No.14, described as critical maintenance to secure long-term ironmaking capability. The furnace supplies iron for high-strength steels using pellets from the company’s Keetac mine in Minnesota. The investment also covers upgrades to the hot strip mill and steel shop, with environmental permitting now under way.

Asia: Stainless growth and hydrogen steelmaking

In Southeast Asia, China’s Yongjin Technology Group plans to invest $380 million in a stainless steel project in Vietnam with total capacity of around two million tonnes per year. The plant, to be built in Ha Tinh province’s Vung Ang Economic Zone, will be operated by a new joint venture led by Yongjin and is expected to become Vietnam’s first integrated stainless steel facility. The first phase includes almost two million tonnes per year of hot rolled stainless coil capacity, a 1,780 mm hot rolling line and annealing and pickling facilities.

In China, Baowu Steel has commissioned a one-million-tonnes-per-year steel line at its Zhanjiang site based on a hydrogen-driven electric smelting route. The project combines a hydrogen-based shaft furnace producing DRI with electric furnaces casting slabs. Baowu says the process can cut carbon emissions by 50–80% compared with conventional blast furnace production.

Trade flows: Stainless steel under pressure

Trade data underline the pressure on regional markets. China’s stainless steel exports reached a record monthly high of 485,000 tonnes in December, up nearly 20% on November and 4.2% year on year. Total exports for 2025 exceeded five million tonnes. Imports also jumped in December to around 145,000 tonnes, driven mainly by wide cold rolled coil, although full-year imports still fell by 19% to about 1.52 million tonnes, with Indonesia remaining the largest supplier.

Source: MEPS, Photo: Fotolia