Acciaierie d’Italia restarts BF No. 2
Italian flat steel producer Acciaierie d’Italia (ADI) restarted blast furnace No. 2 at its Taranto plant on 10 February, the steelmaker’s extraordinary administration said on 21 February.
Earlier this month the company announced plans to double steel production to 4 mt/y by April 2026. The steelmaker has also scheduled maintenance on BF No. 4, which will start on 28 February and will last for 60 days.
Market sources commented that the decision to increase output is well timed for the steelmaker, as European buyers have faced higher import prices due to the introduction of the Carbon Border Adjustment Mechanism (CBAM) from January. In addition, import quotas are expected to fall sharply from July, making imports riskier.
As a result, more European buyers have turned to domestic suppliers, allowing domestic prices to rise despite a lack of end-user demand recovery.
In Italy, deals for domestic hot-rolled coil (HRC) have been reported at EUR660-670/t ex-works, matching prices in Northwest Europe, which before was traded at a premium. Some domestic steelmakers have also been more ambitious in their offers in southern Europe, due to the region’s traditionally greater reliance on imports, aiming to get EUR750/t delivered for May rolling HRC.
ADI is currently in the process of being sold, with Flacks Group, a United States-based investment firm focused on the turnaround of distressed businesses, discussed in the market as a likely new owner. The tender has not yet been finalised.
Author: Maria Tanatar
Acciaierie d’Italia plans ramp-up in steel output to 4 million tpy amid government-led restructuring
AdI (formerly ILVA) plans to restart blast furnace (BF) No2 during the course of the next few days, the release reads.
At the same time, on February 28, the company will start planned maintenance at BF No4, scheduled to last about 60 days. Also, within the same time frame, the company will restart coke batteries 7,8 and 12, which have being temporarily shut down for maintenance recently.
Restart of BF No2 (installed capacity of 2 million tpy of pig iron) and following restart of BF No4 (installed capacity of 2.3 million tpy of pig iron) will allow AdI to ramp up steel output to around 4 million tpy, the company said.
AdI is the largest steelmaker in Italy, with installed capacity for 8 million tpy of pig iron and 10 million tpy of crude steel. But the steelworks managed to produce just 3 million tonnes of steel in 2023, below the target of 4 million tonnes. In 2024, the company produced less than 2 million tonnes of steel, market sources said. The company had equipment to produce hot-rolled coil, cold-rolled coil, galvanized coil, plate and tubes.
As for the other BFs, industry sources said that BF No3 was completely out of operation, while BF No 5 — the largest one, with capacity for 3.7 million tpy — would require significant investment and effort in a revamp.
As of February 2026, BF No1 remains under judicial seizure and cannot be operated, after being shut down following a fire in May, which led a judge at the Court of Taranto to order a more in-depth investigation. On Thursday February 12, the Court of Taranto dismissed the application to release BF No1 from seizure, local media reported.
The Italian government took over the administration of AdI in February 2024, removing ArcelorMittal from operational management, Fastmarkets reported.
“Since February 2024, over €997 million ($1.19 billion) has been allocated to maintenance activities and industrial investments, confirming the Extraordinary Administration’s commitment to ensuring the full functionality of the facilities,” the release reads.
ADI was officially put up for sale by the Italian government in August 2024.
The sale process is unfolding against the backdrop of a long-running dispute between ArcelorMittal and the Italian state over the management and alleged expropriation of the former Ilva assets.
Earlier this week, the European Commission approved a €390 million rescue loan for the Italian steelmaker.
The measure was aimed “to ensure that AdI can cover its operating costs until the business is transferred to a new operator that will be selected in tender procedure that is currently ongoing,” the Commission said.
Author: Julia Bolotova
ADI eyes 4 mt/y steel output by April 2026
Acciaierie d’Italia (ADI) plans to double steel production to 4 million tonnes per year by April 2026, the extraordinary administration of ADI announced on 11 February.
Testing at blast furnace (BF) No. 2 has been completed and full-scale production will be restarted “in the coming days”, according to ADI.
In the meantime, scheduled maintenance on BF No. 4 will start on 28 February and will take around 60 days. Following the restart, the steelmaker will operate both BFs, McCloskey understands, with output reaching 4 mt/y.
ADI is also planning to recommission temporarily idled coking batteries No. 7, 8 and 12.
The administrators said that since February 2024, over EUR997m has been allocated to support production at ADI. Earlier this week, the European Commission approved a rescue loan of up to EUR390m to ADI under EU state aid rules.
“The funds were allocated to ensure that the steelmaker can cover operating costs until the new owner is selected in the ongoing tender,” the ADI release said.
ADI is currently in the process of being sold, with Flacks Group, a United States-based investment firm focused on the turnaround of distressed businesses, discussed in the market as a likely new owner. The tender is not yet finalised.
ADI’s new output target is in line with the plans disclosed by Flacks Group for 2026. In addition, as part of its decarbonisation initiative Flacks Group plans to replace existing blast furnaces (BFs) with two electric-arc furnaces (EAFs) and keep only one BF running.
To learn more about decarbonisation projects in Europe and globally – check Global Green Steel Profile.
Market participants believe that increased domestic production in Europe might slow down or put an end to the bullish trend settled in the market. Real demand has not recovered, and domestic price increases have been mainly driven by the impact of the Carbon Border Adjustment Mechanism (CBAM), launched earlier this year and the anticipated reduction of import quotas. The first policy has made imports riskier, increasing costs for imports arriving in the EU, with buyers switching from purchases on a CFR-basis to DDP in an attempt to protect themselves from additional risks. The anticipated reduction of quotas for steel imports by 47% in the second half of the year will further restrict access of imports to the EU market.
A combination of these factors has increased the market share of European steelmakers and also boosted prices. However, an increase in domestic output risks disrupting this dynamic, sources said.
At the end of last year, ArcelorMittal resumed production at its Fos-sur-Mer plant in southern France.
Author: Maria Tanatar
ADI EUR390m loan approved by EU; plans BF restart
The European Commission approved a rescue loan of up to EUR390 million to flat steel producer Acciaierie d’Italia (ADI) under EU state aid rules, the Commission said on 10 February.
The funds were allocated to ensure that the steelmaker can cover operating costs until the new owner is selected in the ongoing tender.
“Italy expects to complete the sale process soon and transfer the operation to the selected bidder. Until then, ADI faces serious liquidity needs to cover operating costs such as paying suppliers and wages. The rescue loan authorised by the Commission aims to cover these operating costs for the months ahead,” the Commission said.
Late last year Flacks Group, a United States-based investment firm focused on the turnaround of distressed businesses, emerged as the preferred bidder for ADI. The company plans to double steel output at ADI to 4 mt within one year. As part of its decarbonisation initiative Flacks Group plans to replace existing blast furnaces (BFs) with two electric-arc furnaces (EAFs) and keep only one BF running.
ADI has annual production capacity capped at 6 mt of crude steel. But it currently operates only BF No. 4.
The steelmaker plans to restart BF No. 2 around 20 February, according to Italian press reports. ADI did not reply to McCloskey’s request for confirmation of this information.
Earlier this year, the extraordinary administration of ADI sued ArcelorMittal seeking approximately EUR7bn in damages alleging that ArcelorMittal mismanaged the assets when it was in control. ArcelorMittal categorically rejected all allegations.
ArcelorMittal denied all allegations in the case related to its Ilva plants in Italy
ArcelorMittal has confirmed that it has been summoned by the Milan Court in connection with a lawsuit involving Acciaierie d’Italia SpA (ADI), which operates under Ilva SpA currently under Extraordinary Administration.
ArcelorMittal has stated that the allegations brought forward by the Extraordinary Commissioners of ADI have no legal or factual basis, stressing that the company will firmly defend its position before all competent authorities.
In its statement, ArcelorMittal categorically rejected the claims made in the lawsuit, which allege that the company misled ADI’s management and local authorities, caused the collapse of the plants, deliberately sought to “destroy” the company’s operations, and “looted” profits from Italy.
Within the scope of the lawsuit, ArcelorMittal is accused of having caused damages of approximately EUR 7 billion to ADI. The company stated that these allegations are entirely unfounded.
The company recalled that Acciaierie d’Italia Holding (ADIH), the parent company of ADI, has been operating under a joint and equal management structure with Invitalia, the investment arm of Italy’s Ministry of Economy and Finance, since 2021.
It was noted that Invitalia was appointed under a public–private partnership framework to relaunch the Ilva facilities, with the ultimate objective of transferring full ownership of ADI to the public sector.
ArcelorMittal emphasized its strong track record in turning around underperforming assets and stated that it has invested approximately EUR 2 billion in its Italian operations.
A significant portion of this investment, the company said, was allocated to the implementation of an extensive environmental plan required under Italy’s Integrated Environmental Authorization. ArcelorMittal stressed that substantial resources were devoted to meeting environmental obligations.
The company also rejected any claims of improper influence over local authorities, stating that all obligations were fulfilled in full compliance with the law.
ArcelorMittal noted that the situation deteriorated after the Italian government revoked criminal liability protection in 2019 for the implementation of the environmental plan.
According to the company, this decision exposed it to criminal risks and undermined the fundamental conditions of the acquisition. As a result, ArcelorMittal initiated its withdrawal from the lease agreement, which was later followed by the establishment of the joint management structure with Invitalia.
In its statement, ArcelorMittal said that hostile behavior, deliberate actions and negligence by Invitalia and Ilva, combined with inadequate and unlawful interventions by the Italian authorities, severely undermined the operating environment.
Despite presenting several restructuring proposals, the company claimed that Invitalia failed to meet its commitments throughout the process.
ArcelorMittal further noted that temporary legislative measures adopted in February 2024 enabled ADI to be placed under extraordinary administration, a move the company described as a de facto expropriation of its investments.
The company stated that these measures negatively affected production capacity, cash flow, and planned investments.
ArcelorMittal announced that it has initiated multiple legal proceedings in response to the damage suffered. In June 2025, the company filed an international arbitration case against the Republic of Italy.
The claim alleges unlawful expropriation, discriminatory and disproportionate treatment, and violations of the company’s legitimate expectations.
ArcelorMittal stated that its investments have been severely devalued as a result of these actions, that its European interests have been harmed, and that its total compensation claim exceeds EUR 1.8 billion.
Ilva commissioners to seek €5 billion in damages from ArcelorMittal
The special commissioners of the former Ilva plants, now Acciaierie d’Italia (ADI), located in Taranto in southern Italy, plan to launch legal action against ArcelorMittal to obtain €5 billion in damages. The move was announced by Minister of Enterprises and Made in Italy Adolfo Urso, who referred to the damage suffered by the steel group during the years of management by the Franco-Indian giant.
According to the minister, the requested amount reflects the losses generated by the deterioration of the facilities, the lack of ordinary and extraordinary maintenance, and the loss of ETS quotas accumulated in previous years. The lawsuit is expected to be filed between December 15 and December 18, with the Morselli management period at the centre of the complaint. Minister Urso reiterated that there is no plan to close the Taranto steelmaking hub. On the contrary, almost one year ago the commissioners launched an emergency maintenance program with the aim of delivering safe and operational plants to a future buyer by March, ensuring a minimum production capacity of 4 million mt of steel per year.
In parallel, the search for a new private investor continues. The competitive procedure, launched after ADI was brought under state control at the beginning of 2024, has attracted interest from several players, but so far only the consortium led by Baku Steel with Azerbaijan Investment Company and India’s Jindal Steel has expressed willingness to acquire the entire assets. Since 2022, the state has already provided more than €2 billion in loans, subsidies and emergency support measures to keep production running.
As previously reported by SteelOrbis, the Italian government has recently announced new funds to secure the former Ilva’s operations, while confirming the continuation of the current rules on access to short-time work schemes and the ongoing negotiations with potential buyers. In another key step, talks on the decarbonization plan have led to the establishment of an inter-institutional technical committee tasked with assessing gas supply options and the feasibility of the four DRI plants planned for the future pre-reduced iron hub in Taranto, with the still-open issue of a possible floating storage and regasification unit (FSRU).
The industrial side of the story is closely linked to the environmental side. Brussels has sent Italy another letter of formal notice for violations related to emissions from the Taranto site, keeping open an infringement procedure that has been under way for more than ten years and that requires a rapid shift towards lower-impact technologies. In this context, low-carbon transition projects are gaining weight, including initiatives related to DRI production and pilot schemes for the use of green hydrogen in steelmaking.
The outcome of the lawsuit against ArcelorMittal and the choice of a new investor will be decisive for the relaunch of ADI. While the government aims to close the international tender in the coming months, the outlook for the Taranto hub remains uncertain, amid pressure from EU institutions, trade union demands for stronger employment guarantees and the need to finance a decarbonization path that is expected to require total investments of more than €5 billion.
Acciaierie d’Italia has become a strategic partner of the H2Loop Project
Acciaierie d’Italia has begun its work as a strategic partner in the European H2Loop project, which aims to decarbonize the steel industry.
The Research & Development Center of the Taranto plant, operating under Acciaierie d’Italia in Amministrazione Straordinaria, has completed the Kick-Off Meeting of the European H2Loop Project after two days of intensive work. The project aims to develop innovative solutions for sustainable hydrogen production and the decarbonization of the steel sector, and is co-funded by the European Commission under the RFCS–BIG TICKET program.
Acciaierie d’Italia’s R&D Center is among the project’s main partners. H2Loop is designed to support research and innovation in the steel sector in line with the objectives of the European Green Deal, strengthening Europe’s scientific excellence, industrial competitiveness, and sustainability.
The four-year project brings together several international partners, including: VDEh-Betriebsforschungsinstitut GmbH (BFI) from Germany, with over 50 years of steel industry expertise, Rouge H2 Engineering AG from Austria, developer of the core technology, Politecnico di Torino, a leading academic institution in engineering.
The central goal of H2Loop is to evaluate the feasibility and efficiency of applying a patented chemical looping hydrogen (CLH) process to produce hydrogen from metallurgical gases. This approach aims to accelerate the steel industry’s sustainable transition, reduce CO₂ emissions, and integrate hydrogen production into industrial applications.
The Taranto site has been proposed to host the pilot applications, reinforcing the strategic role of the R&D Center in researching advanced technologies for producing high-purity hydrogen from blast furnace gas. Project partners have already begun initial technical activities, including inspections of facilities and specialized laboratories.
H2Loop stands out as a pioneering initiative aimed at shaping a more sustainable and competitive European steel industry. The project strengthens Taranto’s position as a leader in research and technological innovation within the steel sector and contributes to Europe’s energy transition and Green Deal targets.
ADI continues talks with potential buyers
The extraordinary administrators of Italian integrated steelmaker Acciaierie d’Italia (ADI) are continuing negotiations with interested buyers, the steelmaker said earlier this week.
The interested parties remain the same – an Azerbaijani consortium led by Baku Steel, Indian steel company Jindal Steel and the United States investment fund Bedrock Industries Management.
“The shared objective is to identify solid, sustainable and long-term industrial solutions,” an ADI spokesman said.
The ADI administration is paying particular attention to the required gas supply development for the green transition of the mill, including replacement of blast furnaces (BFs) with direct-reduced iron and electric-arc furnace (DRI-EAF) production.
ADI has been inactive in the market over the past month. In late June, Minister of Enterprise and Made in Italy (MIMIT), Adolfo Urso, told trade unions that all ADI’s blast furnaces (BFs) were at risk of closure. Italian authorities have been negotiating the sale of the plant to several potential buyers, including Baku Steel and JSW Steel.
On 4 July, the MIMIT held a meeting regarding energy supply for the decarbonization of ADI. The next meeting will take place on 8 July.
Maria Tanatar Associate Director, Steel and Green Steel
Acciaierie d’Italia to increase Taranto production this year
Acciaierie d’Italia (ADI)’s commissioners aim to produce 3.5 million tonnes of steel in 2025, with output progressively increasing following the reopening of BF no.2, Kallanish learns from market sources close to the company.
They have requested Italy’s labour minister extend the temporary layoffs for an additional 12 months, commencing in March, affecting a total of 3,420 workers, with 2,955 of those at the Taranto steelworks.
The document submitted to the labour ministry, the unions and the enterprises and made in Italy ministry (MIMT) says that Taranto produced 2mt in 2024.
Currently, Taranto is functioning with blast furnaces no.1 and 4, achieving a production rate of 8,000 t/day. This indicates a slower production rate, as Taranto has the capability to produce approximately 20,000 t/day at full capacity.
The document claims that present production levels are insufficient to ensure a sound cost-profit ratio.
The deadline for reviewing the binding offers for ADI is set for 14 February.
Only three proposals have expressed interest in acquiring ADI’s assets as a whole. These were American investment fund Bedrock Industries Management, Jindal Steel International, and a consortium comprising Baku Steel Company CJSC and Azerbaijan Investment Company OJSC.
ADI’s facilities in northern Italy were the subject of seven proposals. These include a consortium established by CAR Segnaletica Stradale Srl, Monge, Trans Isole Srl, and Eusider SpA, alongside another consortium that includes Eusider, Marcegaglia, Profilmec, and I.M.C.
A third consortium, comprising Marcegaglia, Sideralba, and Vitali, has reportedly submitted a bid for the tube re-rolling plant situated in Salerno. These suitors are not interested in the Taranto steelworks (see Kallanish passim).
Natalia Capra France
Acciaierie d’Italia enters collaboration to build Taranto DRI facility
Acciaierie d’Italia (ADI) and state company DRI d’Italia have signed a memorandum of understanding that kickstarts a collaboration to build a direct reduced iron plant at the Taranto steelworks, Kallanish learns from the company.
This is regarded as a significant advancement in the steelworks’ decarbonisation.
Whatever company acquires up-for-sale ADI is expected by the special administration managing the steelmaker to complete the DRI project as the sales process progresses. In order to ensure that Taranto has the capacity to provide the requisite infrastructure for the storage and transportation of iron ore and other materials, both ADI and DRI d’Italia have conducted feasibility studies.
The 2.5 million tonne/year plant will be constructed by DRI d’Italia using state funds, while ADI will evaluate the necessary equipment modifications to accommodate the facility, such as enhancing the iron ore storage areas.
“The DRI technique has long been indicated for reducing CO2 emissions in steel production, with less use of coal. This is the reason for the which public financial resources available are huge, around €1 billion [$1.08 billion] for the project, through cohesion funds,” ADI says in a note.
Blast furnace No.1 was restarted in Taranto on 15 October to enable adequate output to ensure the financial resources necessary for the survival of the plant.
ADI aims to register 1.9-2.2 million tonnes of steel output in 2024. Sources, however, believe the steelmaker’s production will fall short of that.
In the first quarter of 2025, BF No.2 is scheduled to be restarted. By the first quarter of 2026, the firm plans to run BFs 1, 2 and 4. The plant is eyeing production of 4.5-5mt in 2025.
Until 15 October, Taranto was operating only BF No.4, while BF No.5 has been inactive for a number of years. BFs 1 and 2 idled production a few months ago (see Kallanish passim).
Natalia Capra France
