Posted on 27 Feb 2024
The Italian government is actively looking for private investors in Acciaierie d’Italia (ADI). As confirmed by Giorgia Meloni, authorites intend to avoid nationalising the troubled steelmaker and are rumoured to be in talks with local steelmaker Arvedi but also with Metinvest and Jindal Steel’s subsidiary Vulcan green steel, informed sources say.
While Arvedi is not commenting on its potential involvement with the steelmaker, Metinvest has stated its interest. The company is currently supplying Taranto with raw materials and sourcing slab from Taranto for its Italian facilities (see Kallanish 31 January). Almost all local steelmakers and large steel processors have also been contacted by the government to invest. In an interview with local TV show Porta a Porta Giorgia Meloni said that several potential investors are looking at the dossier. Last week the Italian government placed ADI into extraordinary administration, thereby passing control of the company to government appointed commissioners, headed by Giancarlo Quaranta. Sources in the market expect the government to name two more commissioners. Quaranta is in these hours meeting with the unions while Italy’s Minister of Enterprises and Made in Italy (MIMT), Adolfo Urso is discussing with the European Commission a grant of €320 million ($346m) to pay raw material and contractors.
ADI has sold 2.5 million tonnes of steel, and has 1 million tonnes of steel in stock, including raw materials and finished products. In 2023, it produced about 3 million tonnes of crude steel. In Taranto, ADI is producing using only Blast furnace No. 4 which howver was also idled on 21 February for maintenance for 24 hours.
Source:Kallanish
