The Italian government has allocated another €200 million to support Acciaierie d’Italia

The Italian government has allocated another €200 million in financial support for steel company Acciaierie d’Italia (ADI), formerly Ilva. The funds will allow the company to continue operating while negotiations on its sale are underway, the Italian Industry Minister said on June 12, Reuters reports.

In March, the Italian government announced exclusive negotiations with an Azerbaijani consortium on the possible transfer of ADI to private ownership. The company was placed under state control last year due to financial difficulties caused by high energy prices and low demand for steel.

Potential new owners include Baku Steel and the Business Development Fund of Azerbaijan. These entities are planning to invest in the resumption of production and stabilization of the company.

The decision to provide new financial assistance was made after a meeting between government officials and trade unions in Rome. The government assured them that it would ensure the continuity of ADI’s operations until the negotiations on the change of ownership are completed.

Acciaierie d’Italia is a key player in the country’s steel industry, and its shutdown could deal a serious blow to the entire Italian manufacturing sector. For this reason, the government has repeatedly been forced to intervene and provide financial support to avoid an economic chain effect.

The sale of ADI remains one of the most important industrial issues for the Italian authorities in 2025.

As GMK Center reported earlier, Acciaierie d’Italia resumed operation of blast furnace No. 1 at its Taranto plant on 15 October 2024. According to the company’s statement, this is an important step in ADI’s recovery plan and confirms the commitment of the special commissioners, the Italian government and the company to continue to restore production activities at the steel plant.

Prior to the launch of BF No. 1, only blast furnace No. 4 was in operation in Taranto. Blast Furnace No. 5 has been out of service for several years. ADI planned to reach production of 1.9-2.2 million tons of steel in 2024. By 2025, it plans to reach 3.5 million tons of steel, which will be facilitated by the launch of blast furnace No. 2.