The Italian Federation of Steel Companies, Federacciai, and 14 steel companies submitted an expression of interest on August 18 for the acquisition of the former Ilva plants.
The statement was signed by ABS Acciaierie Bertoli Safau, Acciaieria Arvedi, Acciaierie Venete, Advanced Steel Solutions, AFV Acciaierie Beltrame, Alfa Acciai, Compagnia Siderurgica Italiana, Duferco Travi e Profilati, Feralpi Siderurgica, Ferriera Valsabbia, Lucchini RS Holding, Marcegaglia Carbon Steel, O.R.I. Martin and Rubiera Special Steel.
Consortium focuses on cold-processing facilities
The consortium's project covers the cold-processing facilities where steel is processed after primary production. The hot-production area and blast furnaces are excluded from the project.
On July 27, the Milan Court of Appeal ordered the closure of the hot-production facilities in Taranto within 90 days due to environmental concerns. The commissioners of Acciaierie d'Italia appealed the decision to Italy's Supreme Court.
The supply of slabs is also being considered to allow the cold-processing facilities to continue production. Marcegaglia is reportedly planning to supply 200 tonnes of slabs to Taranto starting in early October. In the medium term, the option of installing an electric furnace in Taranto is also being considered.
Data room process to begin
The expression of interest submitted on August 18 is non-binding. The consortium is expected to gain access to the data room in the next stage to examine the plants' financial position, assets and acquisition terms.
It will become clear after the review whether a binding offer will be submitted. Jindal and US-based investment fund Flacks have also submitted offers as part of the process.
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