Italy has approved €100 million in additional funding to support Acciaierie d’Italia

The Italian government has approved a new €100 million loan for the steel company Acciaierie d’Italia (ADI), according to Taranto Today.

The financial support was included in a decree-law approved by the government late last week. As stipulated, the funds will be used to meet the urgent and unavoidable needs of maintaining the steel plant’s operations during the emergency management phase.

The law authorizes Italy’s Ministry of Business and Production to directly transfer an additional €100 million to ADI for 2026 in the form of a subordinated loan, pending the completion of the sale process.

Approval of a further €140 million loan, according to il Sole 24 Ore, is expected in July. With this, the Italian government will have exhausted the maximum amount of €390 million in rescue loans approved by the European Commission in early February of this year, provided that the funds are limited to operating expenses and the obligation to repay the funds within six months. In January 2026, the Italian government had already disbursed the first tranche of €149 million.

Complications in the tender for the sale of Acciaierie d’Italia’s assets and the resulting extension of its timeline (completion was expected by April) make new financing necessary to meet the company’s liquidity needs; the alternative would effectively be the closure of the steel group.

As for potential buyers, there are currently only two players in the running: India’s Jindal and the American fund Flacks Group.

At present, Jindal is proposing to lease the company’s subsidiary in the first phase, subject to the fulfillment of a number of necessary conditions, starting with the issuance of a comprehensive environmental permit. According to the publication, Flacks appears to be lagging behind in the race, having still failed to convince the government; in particular, it lacks letters of support from banks.

As a reminder, in February of this year, the European Commission approved a rescue loan of up to €390 million for Acciaierie d’Italia in accordance with EU state aid rules. As stated in the institution’s announcement, the measure aims to ensure that Adi can cover its operating costs until the business is transferred to a new operator, to be selected through a tender process.