Italian corporation Marcegaglia has made a significant entry into the Baltic and Northern European market with the acquisition of the Latvian unit of Russian steel producer Severstal. Following approval from the Latvian government and European Union competition authorities, Marcegaglia plans to establish a modern processing and distribution center in Latvia, creating 300 new job opportunities.

Antonio Marcegaglia, President and CEO of Marcegaglia Steel, expressed satisfaction with the deal, emphasizing the company's strengthened commercial presence in Northern Europe and the Baltic states. The acquisition revitalizes Marcegaglia's European operations, particularly in Latvia, Poland, and Ukraine. The Latvian government approved the acquisition, recognizing its potential for revitalization.

The agreement between Marcegaglia and Severstal involved multiple institutions beyond the Investment and Development Agency of Latvia (LIAA). The successful outcome demonstrates effective collaboration among Latvian state institutions, the European Union, and Marcegaglia. Prompt action and cooperation were required from the Ministry of Economics, the Ministry of Foreign Affairs, the Embassy of Latvia in Rome, the Financial and Capital Market Commission, Latvian security authorities, and the Prime Minister's Office.

Guntis Rubīns, head of the LIAA office in Italy, praised the involvement of the Italian government and its Delegation to the European Commission, as well as the determination of Marcegaglia's owners in concluding the deal. Rubīns also highlighted the valuable advice and support provided by Valdis Dombrovskis' office in clarifying procedures and agendas within Brussels institutions.

The cooperation of all parties involved, including the Italian Embassy in Latvia, played a crucial role in the deal's success. The investment by the Marcegaglia Group in Riga marks a significant milestone in Italian industrial presence in Latvia, demonstrating successful collaboration between Rome and Riga at the European Union level, according to Italian Ambassador to Latvia H.E. Alessandro Monti.

The head of the LIAA office in Italy believes that the project opens a new chapter in economic relations between Latvia and Italy. Marcegaglia's plans to increase the turnover of the newly established company, Marcegaglia Baltics SIA, to EUR 300 million in three years showcase the scale of the project. This achievement is likely to attract other Italian entrepreneurs to consider Latvia due to Marcegaglia's owners' reputation and visibility in Italian business and political circles. The project also signifies Latvia's deepening integration into the Western world and reduces dependence on Russian influence during a time of regional tensions and challenges to Ukraine's sovereignty.