The government, a 38% shareholder alongside ArcelorMittal, does not want to nationalize this strategic site.
For the Italian government, the steelworks of Ilva, located near Taranto (Puglia, in the heel of the boot), looks like the rock of Sisyphus. Thursday, December 29, the Italian Council of Ministers adopted a decree-law allowing the unblocking “up to 1 billion euros to guarantee the operation of the site”. The government refers « the relaunch of the site ” and “the industrial conversion of facilities to make them viable”.
The Ilva site is a very strong symbol in Italy. It was founded at the beginning of the XXe century and was for a long time the largest primary steel producer in Europe. Two of its five blast furnaces have been closed for many years. Its nominal production (6 million tonnes per year) is lower than that of Dunkirk. With more than 8,000 employees, the social weight of the Puglia factory makes a state rescue almost inevitable.
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Public support has not been lacking in recent years. In 2012, Italian justice sequestrated him for “environmental disaster”, trial of the leaders at stake. Ilva was put up for sale. And the giant ArcelorMittal, after many obstacles, took control of it in 2018. Las.
The group led by Lakshmi Mittal threw in the towel just over a year later, in November 2019, deeming this takeover too risky given the legal uncertainties surrounding the cleanup of the site. The announcement opened a period of difficult discussions with the Italian government, which wanted to push the European giant to honor its commitments. An agreement was concluded between the parties in December 2020, and implemented at the beginning of 2021. The Italian State entered the capital of Ilva, renamed Acciaierie d’Italia, up to 38%, but with 50% of the rights of vote. The government has appointed a new president, the ex-banker and ex-head of Telecom Italy Franco Bernabè.
The steelworks caught up in the energy crisis
The steel plant was caught up in the drop in demand for steel and the crisis in the energy market in Europe. 2022 production should only be 3 million tonnes, well below the break-even point. In November, Acciaierie d’Italia announced the end of collaboration with 145 subcontractors, proof that the company is facing a very serious liquidity crisis. The government has therefore decided to return to the pot, with this breath of fresh air of 1 billion euros. However, Adolfo Urso, the Minister of Enterprises, insists on his desire not to nationalize the site immediately.
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The Italian State, which, in the December 2020 agreement, was to rise to 60% of the capital of Ilva in May 2024, had considered for a time bringing forward this takeover to directly manage the company. He will finally meet this deadline, according to the Italian press. A meeting of all stakeholders (shareholders, unions, public authorities, etc.) is scheduled for January 19 to try to chart a future for the emblematic steelworks.