Italy in Talks with Investors to Rescue Steelmaker Ilva; ArcelorMittal’s Role Ends

Italy is engaging with investors from Ukraine and India to potentially save the largest steelmaker in the country. The government, led by Giorgia Meloni, is exploring the idea of a consortium to rescue Acciaierie d’Italia SpA. The move comes after the plant was placed under special administration, with names like Arvedi Group, Ukraine’s Metinvest B.V., and India’s Vulcan Green Steel in the mix. The plant, previously known as Ilva and majority-owned by ArcelorMittal SA, has been grappling with challenges like high energy costs and weakened industrial demand. Despite Italy’s debt constraints, it aims to secure partners to maintain some control over critical enterprises, as seen in recent deals in different sectors. The government emphasizes the importance of private investors in revitalizing the plant and plans to facilitate their involvement through a public tender process. While various proposals have already surfaced, the vision is to attract investors genuinely interested in the plant’s success. The efforts align with Italy’s commitment to rejuvenate its industrial sector, evident in a recent agreement with Metinvest and Italian company Danieli & C. Officine Meccaniche SpA. The Acciaierie d’Italia is considered a crucial national asset, giving the state a significant role in its fate. Industry Minister Adolfo Urso mentioned the likelihood of the plant’s acquisition by private investors through a transparent procedure within the year. Meloni also highlighted the preference for private investment over nationalization while emphasizing the potential for external collaboration. The discussions reflect Italy’s strategy to safeguard vital industries while navigating financial constraints and seeking viable partnerships to drive economic recovery.