ArcelorMittal, Italian state may be 50-50 partners

Kallanish understands from union sources that the Italian state and ArcelorMittal Italia will enter into a 50-50 partnership for the relaunch of the former Ilva. Local broadsheet Il Sole 24 Ore also reveals that after 2022 the government could become the majority stakeholder. The value of the equipment and the company’s debt in 2022 will determine the value of the majority stake. The managing board should see an equal participation from the two parties with the president appointed by the state and the ceo, Lucia Morselli at present, appointed by ArcelorMittal.

The agreement on employment may only be reached after this preliminary deal is agreed by 30 November, when ArcelorMittal’s Italian entity, AMinvestCo, has a right of withdrawal, subject to an agreed payment of €500 million ($595m). The company told the unions that meltshop No. 1 will restart in January when Taranto is seen boosting production in light of the current shortage of coils in Italy. This year Taranto’s output will reach approximately 3 million tonnes, Kallanish notes.

ArcelorMittal is reorganising its commercial structure to shield the Italian unit from its other European activities. Former chief marketing officer Carlo Malasomma was replaced with Alessandro Faroni, a director under the former Riva ownership (see Kallanish 10 November).