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
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.
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.”
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: 10 bids for acquisition of former Ilva facilities
The extraordinary commissioners of Taranto-based Italian steel producer Acciaierie d’Italia (formerly Ilva) have announced that as of September 26 10 bids have been received for the acquisition of the former Ilva facilities.
As previously reported by SteelOrbis, the deadline for submitting binding bids had been postponed from September 15 to September 26 to “allow bidders to complete the necessary documentation” and ensure transparency and equal treatment.
Among the bids received, two are for the entire complex (Bedrock Industries, and a consortium of Flacks Group and Steel Business Europe) and eight are for individual assets (Renexia (Toto Group), Industrie Metalli Cardinale (IMC), Marcegaglia, a consortium of Marcegaglia and Sideralba, CAR Srl, a consortium of Marcegaglia, Profilmec and Eusider, Eusider, and Trans Isole). In addition to these, a further bid was received “from a political entity that does not meet the criteria of the tender”. Any proposals submitted after September 26 will only be evaluated if they are particularly advantageous.
Acciaierie d’Italia reports that the special commissioners will take the necessary time to review all bids received, “with particular regard to employment aspects, decarbonization, and the size of investments, in order to ensure the sustainable development of the plants and maximum protection for the workers involved”.