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ArcelorMittal kicking tires at Ilva steel plant

Jun 17, 2014 | 12:25 PM | Michael Cowden

Tags  ArcelorMittal, Lakshmi Mittal, Ilva, Taranto, Italy, Riva Group, mergers, acquisitions steel


NEW YORK — ArcelorMittal SA has been invited by the Italian government to look at Ilva SpA’s steel plant in Taranto, Italy, the company’s top executive said June 17.

"It does not mean that we are going to acquire it. We are looking at it," ArcelorMittal chairman and chief executive officer Lakshmi N. Mittal said on the sidelines of AMM’s Steel Success Strategies XXIX conference in New York.

The Luxembourg-based steelmaker’s caution on the issue comes in part because of the complex set of challenges facing the facility, including economic issues as well as political and social problems, Mittal said. "We have to make a study. What are the challenges? How can they be resolved? This is a long, drawn-out situation."

Ilva’s Taranto facility in southern Italy’s Puglia region, which has five blast furnaces, was purchased by Italy’s Riva Group from the Italian government in 1995 (amm.com, March 22, 2012).

The Riva family is still the majority shareholder of Ilva but does not control the business—the Italian government put Ilva under special administration last year after a widening environmental probe put Europe’s largest steel plant at risk.

AMM sister publication Steel First reported earlier this month that the industrial and environmental plan for Ilva drafted by the administrator said the company requires investments totaling €4.2 billion ($5.7 billion) over the next six years.




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