DANIELI RDI AND AMT INVESTMENTS

The project comprises different investments in innovative, first-of-a-kind breakthrough technologies and advanced manufacturing technologies (AMT) in the promoter's steels plants in Italy and in Croatia. It also includes innovative circular economy investments and covers the promoter's investments in RDI activities. The project is located in the north of Italy and north of Croatia and covers a three to four year period (2022 until 2025).

The objectives of the project are threefold: - the investments in the promoter's steel mills will, among others, decrease the overall environmental footprint of the promoter's steel manufacturing process and enable the production of innovative products; - the investments in circular economy will further increase the promoter's usage of secondary raw materials, its resource efficiency and further increase the circularity of its already highly circular operations; - the investments in RDI will strengthen the promoter's technological know-how in plant engineering and equipment design with a view to providing its customers with innovative and more sustainable plants capable of superior product quality and lower investment and production costs.

The project comprises investments in equipment for the promoter's special steels plant covering mainly innovative first-of-a-kind commercial scale breakthrough technologies, circular economy investments and investments in RDI activities. The project will lead to an improved environmental footprint of the promoter's steel manufacturing and to the dissemination of innovative and more sustainable steel manufacturing equipment and plants. The financing of this project addresses market failures by supporting innovation, through research and development activities, the deployment of advanced manufacturing technology and the implementation of first-of-a-kind commercial scale breakthrough technologies.

The proposed operation satisfactorily meets the required funding needs of the promoter as it provides for the necessary flexibility in terms of tenor and repayment profile, together with a sizeable volume. The EIB funding is expected to improve the promoter's financial profile by diversifying its funding base. The proposed loan from the EIB, a stable anchor financier, is key to attracting other financiers such as NPBs and other MDBs.

The RDI activities will be carried out in facilities already authorized for this purpose. These types of activities are not mentioned in the EIA Directive and, therefore, these activities are not expected to require an environmental impact assessment (EIA). The innovative equipment and circular economy investments in the steel manufacturing plant represent a significant change and extension of existing facilities that fall under Annex II of the EIA directive 2014/52/EU amending the EIA Directive 2011/92/EU. Thus, this part of the investment will most probably require a screening decision as defined in the EIA directive. All investments in manufacturing equipment and lines are expected to be complaint with best available techniques (BAT). The conformance with BAT, the expected permit approval timelines of the different components, in particular the changes related to the existing steel manufacturing plant, and other environmental details will be appraised during due diligence.

The promoter has been assessed by the EIB as being a private company not subject to EU rules on public procurement or concessions. However, if at the project appraisal the EIB were to conclude that the promoter is subject to EU public procurement legislation, then the Bank would duly inform the Commission Services and would require the promoter to apply those rules.