Flacks discusses Marcegaglia, Metinvest, Danieli ADI relaunch support
Flacks Group is in discussions with Italian steelmaker and re-roller Marcegaglia, as well as Metinvest and technology supplier Danieli regarding the industrial plan Flacks intends to implement for Acciaierie d’Italia (ADI) after its acquisition.
This was confirmed to Kallanish by Flacks chairman Michael Flacks, Antonio Marcegaglia and Danieli president Alessandro Brussi.
Completion of the sale may take longer than initially planned due to Italy’s complex and lengthy bureaucratic procedures. Antonio Marcegaglia confirms he is in talks with Flacks but rules out taking an equity stake. “The objective is to support and strengthen the future company’s industrial plan through significant coil offtake in the future,” he says.
The industrial plan will need a technology partner and a large off-taker such as Marcegaglia, while Metinvest would act as the industrial partner supporting the project on raw materials supply. According to Brussi, Danieli and Flacks are currently exchanging views on the future industrial plan and the technological element of the project, although discussions remain at a preliminary stage.
The transaction is progressing, with Flacks’ team of specialists working alongside the Italian government to reach closing. However, given the scale and complexity of the project, which entails a full overhaul of the Taranto steelworks, the process will require time and detailed structuring, Brussi believes. He notes that Danieli is globally recognised for its advanced, low-carbon technologies.
Of the more than €5 billion ($5.89 billion) investment envisaged by Flacks in the former Ilva, around €3 billion is being allocated for new equipment, including three electric arc furnaces and potentially a direct reduced iron plant.
Brussi confirms that Danieli is in contact with Flacks’ technical team, who he describes as experienced professionals with in-depth knowledge of the plant. At this stage, however, discussions are focused on the exchange of technical information and concepts, as the project’s complexity and sizeable financial structure will take time to be defined.
In a recent interview with Kallanish, Flacks noted that while the Italian government has recommended the involvement of an industrial partner, this is not an obligation. He added that he values the advisory input of Metinvest, Marcegaglia and Danieli. Flacks and other sources dismiss the possibility of Italian steelmaker Arvedi becoming a shareholder as some press reports have suggested.
Meanwhile, ADI is restarting blast furnace no.2 at its Taranto steelworks. A scheduled maintenance of BF No.4 will start on 28 February. The special commissioners are expecting BFs no.2 and no.4 to be fully operational by April, with the plant reaching a production capacity of 4 million tonnes/year of steel (see Kallanish passim).
A source close to the company believes Taranto’s output in 2025 was about 2mt or slightly lower, as one BF has always been operational.
Metinvest was unavailable for comment before press deadline.
Flacks Group agrees with Italian government to acquire former ILVA Steel Group
U.S.-based private investment group Flacks, established in the UK, announced that it has reached an agreement with the Italian government to acquire the former ILVA steel group, which has long been loss-making and subject to environmental concerns.
The main plant of ILVA, located in the city of Taranto in the Puglia region and one of Europe’s largest integrated steel facilities, has for years been associated with environmental pollution and high cancer rates in the surrounding area. With the acquisition agreement, the aim is to secure the plant’s long-term future.
In a statement shared by the Florida-based Flacks Group on LinkedIn, the company emphasized that the transaction will preserve the employment of approximately 8,500 skilled workers and strengthen European supply chains that are critical to the automotive, construction, and infrastructure sectors.
The Group plans to invest up to EUR 5 billion in the modernization of the facility, including electrification and furnace upgrades, in order to support decarbonization, efficiency improvements, and sustainable growth. The statement also noted that the Italian government will remain a strategic partner with a 40% stake, while Flacks Group will hold an option to acquire an additional 40% share at a later stage.
Commenting on the transaction, Michael Flacks, Founder and Chairman of Flacks Group, stated: “Our objective is to make a long-term investment, modernize responsibly, and ensure that this historic steel plant has a lasting and sustainable future.”
