The new 50:50 joint venture between ArcelorMittal Italia and Invitalia will invest €2.1 billion ($2.5 billion) into the relaunch of the steelmaker formerly known as Ilva, said Invitalia chief executive Domenico Arcuri during a meeting with unions. He also promised full employment by 2025.
Despite the initial 30 November deadline being postponed, Arcuri said the agreement is almost ready. The parties are compiling a memorandum of understanding that describes the main points of the agreement. The deal is now expected to be signed on 11 December (see Kallanish 1 December).
The objective of the new industrial plan is to gradually reach 8 million tonnes/year of crude output starting from a level of 5mt next year. Part of the new plan will be a gradual decarbonisation, two electric arc furnaces and a direct reduced iron plant, together with the reconstruction of blast furnace no.5.
The longer-term target is to create Europe’s largest plant for green steel, union sources who took part in the meeting tell Kallanish. While the use of a furlough scheme will continue this and next year, by 2025 Arcuri foresees full employment.
The Italian state and ArcelorMittal Italia will enter into a 50:50 partnership until 2022 when the government will become the majority stakeholder at 60%. From now until 2022 the state will inject €800 million into the new company.
The managing board composed of six stakeholders should see equal participation from the two parties, with the president appointed by the state and the chief executive by ArcelorMittal. This year Taranto’s output is not expected to surpass 3mt.