After months of unsuccessful talks, Italy’s government on Monday launched a temporary state takeover of the troubled steel mill, which is majority-owned by steel giant ArcelorMittal, according to people close to the situation. .
Sources said that under the terms of the “temporary administration,” the government plans to appoint a manager to manage and prepare the restructuring plan while recruiting new investors.
The former Ylva steel mill in the southern city of Taranto, in which the state holds a minority stake, is on the verge of bankruptcy with debts of more than 3 billion euros ($3.2 billion) and has not been able to pay or settle most of its suppliers. I’m in a state where I can’t. That gas and electricity bill.
State investment agency Invitalia called on the government on Sunday to start the takeover process after ArcelorMittal refused to inject fresh capital.
Following Sunday’s announcement, ArcelorMittal said it was “surprised” to learn from Italian media that Invitalia had asked the state to take temporary control of its Taranto plant, as it did not mention it at Sunday’s emergency board meeting. “I’m disappointed,” he said.
“This is a gross violation of the investment treaty,” it said in a statement to Invitalia, a copy of which was obtained by AFP.
ArcelorMittal said it had engaged in good faith discussions to support the factory or arrange an orderly exit from ownership, adding: We reject your attempts to blame and absolve yourself and the Italian government for our failures in public-private partnerships. ”
ArcelorMittal owns 62% of the Taranto steel mill, with the Italian state holding the remaining 38%.
Prime Minister Giorgia Meloni and ArcelorMittal’s government have been trading blame for weeks over their failure to meet their obligations and blame for the collapse of negotiations.
Economic Development Minister Adolfo Urso said on Sunday that ArcelorMittal “does not intend to invest in the company, but believes that it is justified to recycle the fruits of its labor and the sacrifices of an entire generation.” .
The industry’s unions have been invited to a meeting on Monday night, where the government announced its decision on the factory’s fate.
The government wants to ensure that the factory, which it considers strategic for the country, continues to operate and protect its 10,700 employees.
Among the potential investors mentioned by Italian media is Ukraine’s Metinvest, which has been searching for new production facilities since Russian forces captured Mariupol’s Azovstal factory in May 2022.
Also reportedly interested are Italian steel company Arvedi and Vulcan Green Steel, a subsidiary of Jindal Steel & Power, which made an unsuccessful bid for the Taranto plant in 2017.
ArcelorMittal acquired the Taranto factory in 2018 after the Italian government placed it under temporary administration in 2015 following financial and legal issues.
Creditors, who have also been invited to Monday’s meeting, have bad memories of the factory’s past administrations, with estimated debts of more than 150 million euros remaining unpaid.
