Italy appoints two more commissioners for insolvent ADI

Acciaierie d’Italia (ADI) has been declared insolvent by the Milan tribunal due to “an absence of liquidity”, a tribunal document says. This officially triggers the procedure of special administration initiated last month and allows the state to inject into the company the necessary funds to guarantee production continuity.

Last month, the Italian government placed ADI into extraordinary administration, thereby passing control of the company from ArcelorMittal and Invitalia to government-appointed commissioners, headed by Giancarlo Quaranta. Two more commissioners have been appointed to share the task with Quaranta, corporate governance specialist Giovanni Fiori and president of NE Nomisma Energia Davide Tabarelli, Kallanish learns from Italy’s Ministry of Enterprises and Made in Italy (MIMT).

Authorities are actively seeking private investors for ADI after Prime Minister Giorgia Meloni said authorities intend to avoid nationalising the troubled steelmaker. They are rumoured to be in talks with local steelmaker Arvedi, but also with Metinvest and Jindal Steel subsidiary Vulcan Green Steel, informed sources say.

While Arvedi is not commenting on its potential involvement with ADI, Metinvest has stated its interest. The company is currently supplying Taranto with raw materials and sourcing slab from Taranto for its Italian rolling mills. Almost all local steelmakers and large steel processors have also been contacted by the government about investing.

ADI sold 2.5 million tonnes of steel in 2023 and currently has 1mt of steel in stock, including raw materials and finished products. It produced about 3mt of crude steel last year. At Taranto, ADI is producing using only blast furnace No.4, which was idled on 21 February for maintenance for 24 hours (see Kallanish passim).

Natalia Capra France