Italy’s national steel manifacturer Acciaierie d’Italia announced that a total of 10 bids were submitted in the tender for the former Ilva plant, one of the country’s largest steel facilities. However, only two of these bids expressed an intention to acquire all of the plant’s assets.
The joint venture of Azerbaijan-based Baku Steel Company and Azerbaijan Investment Company, along with India’s Jindal Steel International, which were initially considered among the leading candidates in the tender, have withdrawn from the process, dealing an unexpected blow to the government.
Of the two bids seeking to acquire all of Ilva, one came from the U.S.based private investment company Bedrock Industries, while the other was submitted by a consortium formed by U.S. based Flacks Group and Slovakia based Steel Business Europe.
The other eight bids including those from Renexia (Toto Group), Industrie Metalli Cardinale, and Marcegaglia focused on specific assets owned by Ilva.
Located in the city of Taranto and once Europe’s largest steel production facility, Ilva has long been associated with mismanagement, environmental issues, and financial crises. Due to its strategic importance, the facility has been kept running with regular state funding support.
According to reports in the Italian press, Baku Steel withdrew after plans for a regasification plant, deemed necessary for an environmentally friendly electric furnace investment, were blocked by local opposition. Jindal Steel, meanwhile, decided to shift its focus to potential opportunities with Thyssenkrupp in Germany.
Following the conclusion of the tender process at midnight on Friday, Acciaierie d’Italia announced that all bids will be thoroughly evaluated, with particular focus on employment, decarbonization, and sustainable investment aspects.
Sourced by: Reuters
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