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
Acciaierie d’Italia sales process advances, new suitors reported
Acciaierie d’Italia (ADI) is advancing its sales process, as the special administration has commenced the review of letters of interest submitted by the deadline of 20 September. Adolfo Urso, Italy’s Minister of Enterprises and Made in Italy (MIMT), indicated to the local press last week there is significant interest from numerous international and national companies.
During the summer months, representatives from Steel Mont, Metinvest, Oman-based Vulcan Green Steel (VGS), and Canada’s Stelco engaged in discussions regarding the potential acquisition of ADI’s mills located in Genova, Novi Ligure, and Taranto, Kallanish notes.
Marcegaglia has recently expressed interest in joining the race. An informed source indicates the re-roller’s interest may be limited to specific segments of ADI’s assets, particularly the tube mills and the Novi Ligure facility, which is one of the re-rolling plants located in northern Italy.
Various companies are considering potential acquisitions of certain assets from the former Ilva, particularly in northern Italy, including the Italian service centres Eusider and Sideralba. According to people with knowledge of the dossier, Arvedi is also considering this, and Nippon Steel is reportedly also mulling joining the race.
Dividing the business and selling its various assets is a viable alternative. Two knowledgeable sources do not think there is a genuine desire to purchase the entire company and believe Metinvest is more likely to move forward with its plan to construct a flat steel mill in Piombino. Taranto is an outdated facility that requires significant capital investment and has an inflated workforce.
MIMT and ADI’s special commissioners invited expressions of interest in July for the acquisition of the struggling steelmaker’s assets. The aim of the sale is to swiftly and effectively reduce CO2 emissions and enhance steel production in Italy, by bringing about a change in management. The commissioners have asked potential buyers to preserve employment.
ADI’s suitors have now been asked to quote a potential price in their offers, Kallanish understands. The special commissioners intend to pursue the sale “preferably” by transferring the assets as a whole, the say. Alternatively, if the commissioners do not deem the offers concerning the business as a whole to be adequate, the transfer will be achieved through separate sale transactions of specific business units belonging to ADI (see Kallanish 2 August).
Natalia Capra France
Acciaierie d’Italia revives shipping fleet, Marcegaglia shows interest
Acciaierie d’Italia (ADI)’s special administration is resuming logistics operations and investing in the rehabilitation of the company’s shipping fleet. The goal is to improve the efficiency, reliability, and competitiveness of the steelmaker’s activities on the national and international markets, Kallanish learns from the company.
A mission to restore the most strategic ships has begun, with the Gemma vessel resuming navigation and commercial activity earlier this week. The ship had been stranded in Singapore for more than three years, since 2020. “Due to a lack of maintenance and expired class certificates, all five ships in the fleet, as well as the eight floating units, were both stationary and inactive. We quickly implemented a focused recovery plan, prioritising strategic units,” Angelo Colucci, ADI director of logistics, supply chain and maritime services, says in a note.
While other vessels are undergoing maintenance, the fleet’s flagship, the 30,000-tonne Ursa Minor, will set sail again this week. It will transport finished and semi-finished products, including coil, from Taranto to ADI’s northern Italian facilities via the port of Genoa.
Meanwhile, earlier this summer, representatives from trading company Steel Mont, Metinvest, Oman-based Vulcan Green Steel (VGS), and Canada’s Stelco conducted visits with a view to acquiring ADI’s mills in Genova, Novi Ligure, and Taranto. Marcegaglia, the Italian steelmaker and re-roller, has recently shown interest in participating in the race and may submit a letter of interest by 20 September, the submission deadline. According to an informed source, the re-roller may only be interested in parts of ADI’s assets, specifically the tube mills and one of the northern Italian re-rolling plants.
Unions are insisting the government keeps a shareholding in Acciaierie d’Italia to guarantee the steelmaker’s correct management. “This concrete monitoring activity is essential to avoid what happened in the past with ArcelorMittal, which was able to act undisturbed, in violation of agreements and rules, precisely because of an almost absent state,” the USB unions note.
ADI aims to produce between 1.9-2.2 million tonnes of steel this year. Based on the most recent update of the relaunch plan communicated to workers, the special commissioners have set a target to restart blast furnace No.1 in October. In 2025, around January or February, BF No.2 will also be restarted. Production will be assured by BFs Nos.1, 2, and 4 by the first quarter of 2026. In 2025, the plant is projected to reach a capacity of 4.5-5m t/y.
Taranto is currently utilising BF. No 4 for operations. BF. No.5 has been inactive for a number of years, while Nos.1 and 2 ceased production a few months ago.
Natalia Capra France
Acciaierie d’Italia aims for Taranto production restart in 2026
Acciaierie d’Italia (ADI)’s special commissioners aim to operate the Taranto steelworks with blast furnaces no.1, 2 and 4 in the first quarter of 2026, with the relaunch plan set to further develop until mid-2026, Kallanish learns from sources close to the company.
Over the coming months, maintenance work will be implemented on BF no.1 and 2, the special commissioners said at a meeting with authorities and unions in Rome last week. During the meeting, the tender for the sale of the assets was presented, with the goal of finalising the operation within the year. The tender incorporates decarbonisation obligations and is centred on maximising employment levels and attracting long-term investors who can bring benefits to local areas and communities.
“Acciaierie d’Italia … will diligently monitor the obligations undertaken by buyers in the industrial plan, as mandated by law,” the firm says in a note. The commissioners also emphasised that the temporary layoff scheme for ADI workers is necessary to cut costs in preparation for the restart. “The implementation of social safety nets … aims to gradually reduce the number of affected workers, starting with 4,700 in the initial phase, in line with the progress of the industrial plan until its completion,” the note concludes.
Meanwhile, potential buyers, including a local re-roller, visited ADI’s Novi Liguri coil processing subsidiary last week. Authorities are exploring the possibility of splitting up the steelmaker and selling its assets to various buyers. At present, Taranto is producing at a significantly slow pace using only BF no.4.
Natalia Capra France
Acciaierie d’Italia low output impacts EU steel availability: Assofermet
The prolonged ownership crisis at Acciaierie d’Italia (ADI) and its lower output may lead to a structural shortage of flat steel products, not only in Italy but also at a European level, Italian steel trade association Assofermet warns.
“The quality products available thanks to Taranto production are very often not available within the EU perimeter. Buyers are therefore forced to turn mainly to Asian steel mills, facing import restrictions which increase costs … The crisis at ADI is part of an already very complicated context for the steel sector,” Assofermet says in a document sent to Kallanish.
EU safeguard measures result in a decrease in the quantity of steel imported into the EU. The Carbon Border Adjustment Mechanism (CBAM) will meanwhile introduce a tax on goods coming from territories outside the EU from 2026. The result will be an inevitable increase in the cost of steel products available in the EU.
“The national [Italian] manufacturing sector’s growth needs a primary steel industry, upstream of the supply chain, that can support it with the necessary quantity of steel,” comments president of Assofermet’s flat steel division Paolo Sangoi.
ADI’s production crisis is happening at a time of low steel availability in Italy and Europe. “Steel output is decreasing: the production levels of 2012, the year of the seizure of the hot-end area of the Taranto plant, have not been reached over the past ten years … With declining steel production and the rising cost of steel, it is essential to preserve the industrial value of the plant,” Assofermet concludes.
ADI, the joint venture between state company Invitalia and ArcelorMittal, registered steel output below 3 million tonnes in 2023, according to preliminary data. This is below the shareholders’ initial objective of 4mt in 2023 and 5mt target in 2024.
ArcelorMittal says it is open to an amicable solution to the conflict with authorities, and prepared to give up its stake to partner Invitalia for a price that “is only a fraction” of the company’s investment into ADI since 2018. While Invitalia refused ArcelorMittal’s recent offer, the steelmaking group assures it is still on the table (see Kallanish passim).
Natalia Capra France