The EC approved a €390 million loan to help Acciaierie d’Italia

The measure should ensure coverage of the company's operating costs until the transfer to the new operator

The European Commission (EC) has approved a rescue loan of up to €390 million for Acciaierie d’Italia (Adi, formerly Ilva), Italy’s largest integrated steel producer, in accordance with EU state aid rules. This is stated in a press release from the institution.

“The measure aims to ensure that Adi can cover its operating costs until the business is transferred to a new operator, which will be selected through an ongoing tender procedure,” the EC said in a statement.

Acciaierie d’Italia operates eight production and service facilities, with the largest plant located in Taranto.

Acciaierie d’Italia is currently facing difficulties, has been in bankruptcy proceedings since February 2024, and is being sold through a tender process. Italy expects to complete the sale soon and transfer operations to the selected bidder. Until then, Adi faces a serious need for liquidity to cover operating costs such as payments to suppliers and wages. The rescue loan approved by the EC is intended to cover these operating costs for the coming months.

The EC has determined that the amount of the rescue loan is proportionate, as it is limited to the projected liquidity shortfall and strictly limited to normal operating costs. The loan is priced at the market rate available to competing companies and is limited to a term of six months. After that, Italy undertakes to submit a restructuring plan, a liquidation plan, or confirmation of reimbursement.

It is noted that neither the beneficiary (Adi) nor its predecessor (Ilva) have received rescue or restructuring aid in the last ten years.

As a result, the European Commission concluded that the rescue loan does not unduly affect competition with other steel producers and trade in the internal market, and on this basis approved the Italian aid.

At the same time, according to the Italian Conquiste del Lavoro, blast furnace No. 2 at the Taranto plant, which has been idle for two years, is scheduled to be loaded and started up on February 20. Currently, only blast furnace No. 4 is operating at the plant, while blast furnace No. 1 remains under seizure.

At the same time, a team of technical consultants from Flacks Group has begun a visit to the facility as part of ongoing negotiations with Ilva and Acciaierie d’Italia commissioners regarding the acquisition of the entire industrial zone.

It should be recalled that the former owner of Italy’s Acciaierie d’Italia, ArcelorMittal, has rejected Italy’s claims regarding the former Ilva. Earlier, the state-appointed extraordinary administrators of Adi filed a lawsuit in a Milan court, demanding €7 billion in damages from the company, citing its improper management. ArcelorMittal, in turn, said it had filed several lawsuits related to losses caused to investments.