Italy has allocated about €1 billion for the construction of a DRI plant for Acciaierie d’Italia

Support for a future investor in the amount of approximately €700 million is also provided

The Italian government has allocated about €1 billion from the country’s development fund for the construction of a direct reduced iron production facility at the Acciaierie d’Italia (ADI, formerly Ilva) steel plant in Taranto. This was announced by Italian Minister of Enterprise and Production Adolfo Urso, QuiFinanza reports.

According to the minister, the future investor of ADI will receive support in the amount of about €700 million through the use of development contracts, as well as additional resources that may come from the Development and Cohesion Fund (FSC), subject to the restrictions established by EU rules.

Urso also said that procedures are underway for the Ministry of Economy to provide a €320 million bridge loan to Acciaierie d’Italia, and that negotiations with the European Commission are progressing smoothly.

As such, Urso said, the resources that are fundamental to continuing the production, maintenance and supply recovery program required for ADI will arrive on time.

In addition, Acciaierie d’Italia’s emergency administrators have started the practice of paying off loans to companies in the supply chain within 60 days – under the previous management, payments were made annually. A significant portion of the past debts, about half, will be transferred to Sace (insurance and financial services for enterprises), and negotiations are in an active stage.

Adolfo Urso also said that the ADI plant in Taranto has attracted the attention of three potential buyers – international industrial players.

The reconstruction plan for the Taranto plant also envisages the resumption of production activities, including the maintenance of blast furnace No. 4, which is expected to operate at full capacity this fall.

As GMK Center reported earlier, Acciaierie d’Italia produced 3 million tons of steel in 2023. As of February this year, the company’s warehouse stocks reached 1 million tons of raw materials and finished products. In addition, ADI sold 2.5 million tons, but the period during which the sales were secured is not specified.