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
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.
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”.
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 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
