Italy to launch new round of investor search for Acciaierie d’Italia in December

The Italian government has announced a new round of investor searches in December for Acciaierie d’Italia, the country’s largest steel company, which is struggling with significant financial losses and the threat of large-scale layoffs. 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, Bloomberg reports.

Industry Minister Adolfo Urso confirmed that meetings with potential investors and trade unions will take place within the next week. During consultations on Tuesday, the possibility of reducing the workforce by up to 75% – from 8,000 employees – was discussed, causing outrage among trade unions. According to the Ansa news agency, they have already announced a strike in protest against such plans.

The government assures that it is ready to invest in improving production safety at the plant and to continue working on increasing capacity. However, the real future of Acciaierie d’Italia remains dependent on whether a strategic partner can be found. Since 2022, the state has allocated more than €2 billion in loans, subsidies, and emergency grants, but previous contenders — notably an Azerbaijani consortium led by Baku Steel and India’s Jindal Steel — have pulled out of the deal.

At the same time, according to sources, the government is conducting private negotiations with Italy’s Acciaieria Arvedi SpA. However, neither party has officially commented on the situation.

The industrial plan developed by ministers under Urso’s leadership provides for a phased transition from traditional blast furnaces to electric arc furnaces, a more environmentally friendly but less scalable technology. In addition, the government is proposing to cut about 6,000 jobs in Taranto, which is increasing social tensions and the financial burden on the budget.

As a reminder, Acciaierie d’Italia is carrying out a series of shutdowns of the only operating blast furnace No. 4 at the steel plant in Taranto. The company implemented a 24-hour shutdown on November 5, and a 72-hour shutdown of the unit was planned for November 10.