Italy is keeping the tender for the sale of Acciaierie d’Italia open

Italy continues its search for an investor for Acciaierie d’Italia, keeping the bidding process open to new participants. According to Italy’s Minister of Enterprise and Industry, Adolfo Urso, any interested party may submit a bid if it surpasses the offers already received. This was reported by Kallanish.

Currently, two key contenders remain in the process—Flacks Group and Jindal Steel International. Both companies are engaged in active negotiations with commissioners, local authorities in the Apulia and Liguria regions, and financial institutions, underscoring the scale and complexity of the potential deal.

The commissioners have already requested confirmation of financial capabilities from Flacks Group, while an industrial plan related to Jindal’s assets in Oman is being discussed. The proposed strategy involves modernizing production and expanding the product range for the automotive, defense, and energy sectors.

According to government estimates, investors will have to account for significant costs related to asset rehabilitation, equipment modernization, environmental measures, and decarbonization. The company’s losses were previously recorded at €7 billion, which significantly complicates the deal.

Jindal’s plan calls for producing 4 million tons of steel during the transition phase, with a subsequent increase to 6 million tons following the implementation of the green transformation. At the same time, the social aspect remains sensitive: currently, about 3,850 employees are on forced furlough, and the government plans to expand this program.

To support the plant’s operations, the Italian government has already approved an additional €149 million loan to prevent the blast furnaces from shutting down and to keep the negotiation process alive. Separately, the Flacks Group has applied for €500 million in bridge financing to restart the assets.

As a reminder, in February of this year, the European Commission approved a rescue loan of up to €390 million for Acciaierie d’Italia—Italy’s largest integrated steel producer. The measure is intended to cover the company’s operating costs until it is transferred to a new operator. The company operates eight production and service facilities, with its largest plant located in Taranto.