The Italian government is considering options to save the former ILva
The Italian government may introduce a special administration at the Acciaierie d’Italia (ADI, formerly ILva) steel plant. This was stated by the Minister of Enterprises and Production Adolfo Urso, who described it as one of the options, Reuters reports.
Earlier, during a parliamentary debate, Urso emphasized the need for decisive action regarding the Taranto steel plant.
«None of the commitments made regarding employment and industrial recovery have been met,» the minister told lawmakers.
According to Urso, ArcelorMittal said it was ready to agree to become a minority shareholder, but not to make a financial contribution in proportion to its share, shifting the entire financial burden to the state, Italian Sky TG24 reported. At the same time, the company is claiming the joint management privilege granted in the original shareholder agreements to influence any further decisions.
«This is unacceptable and unsustainable both in substance and in light of European restrictions on state aid. Therefore, we instructed Invitalia and its legal team to explore all possible further solutions,” commented Urso.
Later, after a meeting with trade unions, it was reported that the Italian government is working to reach an amicable divorce agreement with ArcelorMittal and avoid a lengthy court battle, Il Fatto Quotidiano writes. The parties’ lawyers are working to reach a consensual solution as soon as possible. It will be known next week whether the conditions for reaching it are in place.
According to the government, the first goal is the continuity of ADI production. The government will meet with the unions again on January 18 to explain what tools Acciaierie d’Italia will use to move forward.
Acciaierie d’Italia (ADI), according to preliminary data, produced less than 3 million tons of steel in 2023, which is below the announced target of 4 million tons (in 2024, it was planned to produce 5 million tons of steel).
ArcelorMittal gained control of Acciaierie d’Italia in 2018. Currently, the steel corporation owns 62% of ADI’s shares, while 38% is held by the state investment agency Invitalia.
As GMK Center reported earlier, ArcelorMittal rejected the plan of the Italian government to acquire a controlling stake in ADI, one of the largest steel plants in Europe. A government statement said Invitalia is ready to invest about €320 million ($351.10 million) in Acciaierie d’Italia to increase its stake to 66%. However, the steel corporation refused to provide guarantees regarding additional investments that the enterprise would need.