Italy to demand €5 billion in compensation from ArcelorMittal for Ilva plants

The commissioners of the former Ilva (Acciaierie d’Italia) assets are initiating a lawsuit against ArcelorMittal for compensation of €5 billion for damages caused to the company. This was announced by Minister of Enterprise and Production Adolfo Urso, according to Milano Finanza.

According to the minister, there are no plans to close the company. On the contrary, almost a year ago, special commissioners initiated an emergency maintenance program to transfer safe and functioning plants to the future buyer by March to ensure continuity of employment.

“This maintenance is absolutely necessary because it was caused by the state of complete disrepair in which the plants were left by ArcelorMital,” Urso said.

According to estimates by the relevant ministry, the figure of €5 billion is equivalent to the losses caused by the previous administration due to lack of maintenance and loss of ETS quotas.

Acciaierie d’Italia (ADI) was transferred to government control in early 2024. The Italian authorities are looking for new private investors.

“The international tender is ongoing, and negotiations are difficult because the goal is complex,” the minister said.

At the same time, the government is working to create favorable conditions for Acciaierie d’Italia, given that energy supply and cost are the most important factors, including in view of the needs associated with the planned decarbonization.

Earlier, it was reported that the Italian authorities had announced a new round of investor search for Acciaierie d’Italia in December. According to government documents, a secret bidder has already gained access to the database, and Bedrock Industries and a consortium led by Flacks Group have expressed interest in the asset.

Since 2022, the state has allocated more than €2 billion to ADI in the form of loans, subsidies, and emergency grants, but previous bidders, including an Azerbaijani consortium led by Baku Steel and India’s Jindal Steel, have withdrawn from the deal.