The acquisition and modernisation by ArcelorMittal of Italian steel maker Ilva’s Taranto site will strongly benefit the entire steel value chain in the country according to the Italian steel association Assofermet. In particular, it will benefit the many steel end-user sectors in the Taranto region, the association adds. It is urging all the parties involved to speed up the process for the site’s re-launch.
The Ilva acquisition by ArcelorMittal represents today the best option for a smooth production continuity of Taranto, Assofermet continues. The heavy disruption in Ilva’s production volumes has led to major supply difficulties for both domestic end-users of steel and re-rollers. Taranto’s heavy production cuts have resulted in booming imports and an unbalanced market in term of prices, demand and supply., the association says in a note sent to Kallanish.
Italy for instance could only count on Marcegaglia and Arvedi for the [… domestic] supply of flat products and tube. Despite the “… excellent work” done during the crisis years for Italian steel, they are not able to satisfy – by type and volume – the entire demand from the domestic market. Bringing Ilva’s output back to the volumes of the past will enable the country to respond to its domestic demand, and produce timely delivery with better price competitiveness, Assofermet says.
With its significant resources, ArcelorMittal is able to deploy the technical and managerial leadership necessary to bring back Taranto to its full performance of the past. In relaunching Taranto, ArcelorMittal’s objective is to make the plant its main production platform in the Mediterranean for ‘clean’ steel. However, only continuity of production in Taranto will allow environmental rehabilitation to be achieved, the association contends. Should activities terminate and the site close, the risk of degradation and complete abandonment of the area is very high, Assofermet warns.
Kallanish
