Italian steelworks under extraordinary administration, end of the road for ArcelorMittal

The official announcement arrived on February 20 on the website of the Italian Ministry of Enterprises and Made in Italy: Minister Urso decreed that Acciaierie di Italia S.p.A. (formerly known as ILVA), a major steelworks located in Taranto, would be immediately placed under extraordinary administration. Dr. Giancarlo Quaranta, a seasoned manager with 40 years of experience in the steel factory, has been appointed extraordinary commissioner.

The ministerial decree was issued following the request submitted on February 18 by Invitalia, public partner of Acciaierie d'Italia, which holds 38% of the capital, for the immediate admission of the company to the extraordinary administration procedure.

ArcelorMittal exits Italian steel venture

On February 20, ArcelorMittal quickly followed suit and released a statement highlighting the end of its involvement in ADI that began in 2018 and, according to its claims, involved investments of over 2 billion euros for modernization and environmental compliance. In this statement, ArcelorMittal emphasizes the unsuccessful attempts to reach an agreement with Invitalia. According to the industrial Luxembourg-based giant, the inability to access traditional financing and the failure of the Italian Government to meet support commitments have contributed to the current situation.

Inaugurated in 1965, the steelworks in Taranto is one of the largest in Europe and has employed thousands of people over decades. However, the plant has also been at the center of significant environmental controversies and concerns for the health of citizens. Out of 4 blast furnaces (there were 5 before 2019), only one is still active today.

In the image, the steelworks of Taranto in 2007 - mafe de baggis, Flickr