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”.
