EC approves €320 million loan to Acciaierie d’Italia

The European Commission has approved a €320 million bridge loan for Italian steelmaker Acciaierie d’Italia (ADI), AGI reports.

As explained by the Italian Ministry of Business and Production (Mimit), the letter from Brussels contains a positive assessment of the terms of the loan, which provides for an interest rate of 11.6% per annum.

This confirmation, the ministry noted, demonstrates the validity of the industrial plan developed for the company by special commissioners and the company’s ability to repay the amount in due time without state aid.

The funds will support the company, but it is necessary to start the restart and reconstruction phase of Acciaierie d’Italia. The plant in Taranto has been operating only partially for some time. At the end of April this year, the emergency administration presented a draft industrial plan that envisages the production of 6 million tons of steel per year and the construction of two electric arc furnaces by 2027. However, ADI still needs resources and a strong industrial partner. Several multinational companies have already expressed interest in the assets.

At the same time, trade unions are demanding to resume discussions with the government on the prospects of Acciaierie d’Italia, the restart plan, employment, additional resources to be provided by a special commissioner, and a tender.

At the end of March 2024, it became known that Acciaierie d’Italia would receive an additional €120 million to cover its debts. The financial guarantee for the transaction was provided by the Sace Group, controlled by the Italian Ministry of Economy. The funds were in addition to another €100 million credit line that Sace opened to cover ADI’s debts to customers. In addition, Italy has allocated €150 million for the maintenance of the Taranto plant.