March 29, 2017

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ArcelorMittal and Marcegaglia submit offer for Italian steel maker

ArcelorMittal and Marcegaglia have announced that they have submitted an offer for Ilva, the Italian steel-making company.

Commenting on the move, Lakshmi N. Mittal, chairman and chief executive, ArcelorMittal, said: “We believe the ArcelorMittal and Marcegaglia consortium is the best partner for Ilva. Our managers and engineers have been studying the company for some years and well understand what needs to be done to turnaround the performance and ensure a strong, safe and sustainable future for the employees of Ilva and the people of Taranto. We are confident that we have the right industrial plan, the right environmental plan and the right commercial plan to support the transformation of Ilva into a company that will once again be a jewel of the Italian manufacturing landscape, adding value to the Italian economy and all stakeholders.

“In the first instance, primary production is limited to 6 million tonnes until the AIA is fully implemented.  However, we recognise the importance of maximising production and maximising employment while minimising the environmental footprint of the plant. That’s why we intend to run the finishing capacity full by importing additional slab and, over the longer term, ramp up primary production to 8 million tonnes plus, utilising low impact steelmaking technology.”

On his part, Aditya Mittal, CEO of ArcelorMittal Europe and group CFO, said: “We are very excited about this opportunity to partner with Ilva. At the heart of our plan is an investment commitment of more than two billion euros. This will transform Ilva’s environmental performance, as well as improve the stability and efficiency of the operations and re-orientate production towards the high added value products that must be Ilva’s future. The ArcelorMittal/Marcegaglia consortium brings the benefit of established contacts with European customers which will support Ilva’s swift integration into the European customer landscape and re-establish its position as the supplier of choice for Italian customers. That’s why we intend to run the finishing capacity full by importing additional slab and, over the longer term, ramp up primary production to 8 million tonnes plus, utilising low impact steelmaking technology.”

On behalf of Marcegaglia, Antonio Marcegaglia, chairman and CEO, Marcegaglia, said: “As an Italian, it has been sad to watch the decline of this great company in recent years and we are excited to have the chance to contribute to a new renaissance of this Italian steel icon.

“Marcegaglia wanted to partner with ArcelorMittal because we were convinced the combination of operational and financial excellence with a deep knowledge of the market represents the most powerful solution for the renaissance of Ilva and its people. Marcegaglia has worked closely with ArcelorMittal over the years – we know how they do business, integrating sustainable development and corporate responsibility into everything they do – and we believe this approach is what Ilva needs. It will be important to re-establish dialogue and trust with the local community and to demonstrate to them that Ilva can operate safely and responsibly within their community.This will be a key priority for us from day one.

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