Italian Industry Minister Adolfo Urso announced that Azerbaijan-based Baku Steel has submitted the best offer for the takeover of the former Ilva steel plant, which has been taken under state control.
Baku Steel was one of three companies bidding for the plant in Taranto, which was previously majority-owned by ArcelorMittal. India-based Jindal Steel and US-based Bedrock Industries also took part in the tender. However, the amount of Baku Steel's bid has not yet been disclosed.
Industry Minister Urso said that state commissioners will most likely make a formal request to evaluate the Azerbaijani team's bid and authorize negotiations. Baku Steel operates under the Azerbaijan Investment Company, which is owned by the Azerbaijani state.
The Italian government had accused ArcelorMittal, which owns 62 percent of the plant it took control of in 2018, of failing to maintain the plant. ArcelorMittal had acquired the plant in 2017 for EUR 1.8 billion and pledged to invest EUR 2.4 billion while maintaining the employment of Taranto's 8,100 workers. However, due to financial and operational difficulties, the management of the plant was taken over by the state.
At the time of the Italian government's intervention in February 2024, the plant was on the verge of bankruptcy and owed more than EUR 3 billion.
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