Italy to put ArcelorMittal steelworks under government supervision

Italy will put the former Ilva steel company under special administration to keep it afloat, the government told trade unions in a meeting on Thursday. The move follows weeks of clashes between Prime Minister Giorgia Meloni’s administration and ArcelorMittal, the main shareholder in Acciaierie d’Italia (ADI), as Ilva is now known. ArcelorMittal, which owns 62% of the group while state-owned investment agency Invitalia has the remaining 38%, was not immediately available for comment. It could potentially launch a legal appeal against Rome’s decision once it is effective. Michele De Palma, from the FIOM major metalworkers’ union, said the government needed around two weeks to appoint one or more commissioners. Meanwhile, he added, ArcelorMittal has started a procedure for an extra-judicial agreement which government officials have said seems a way to waste time. Similar to Chapter 11 bankruptcy in the United States, the special administration would allow ADI to reorganize debts and obligations while the government is looking for a new industrial partner. Rome aims to provide liquidity to ADI through an up to five-year loan worth 320 million euros ($347.65 million). Weighed down by an increase in energy prices and a drop in rolled steel coil prices, ADI has run out of cash and has accumulated huge debts with suppliers including energy giant Eni. ADI’s main plant in the southern Italian city of Taranto is one of the largest in Europe and is a major employer in Italy’s under-developed south.