During a meeting between worker unions and the management of major Italian steel producer Ilva, a steel production target of six million metric tons has been set for the current year, compared to the output of 4.837 million metric tons recorded in 2015. Ilva’s production volume in 2012 had amounted to 8.338 million metric tons. In addition, there will be 3,519 temporary (12-month) layoffs at the company in 2016.
Companies interested in buying or renting Ilva’s business can present their offers up to February 10. Subsequently, they can start a due diligence process which will have to be completed before the end of June. At present, it is rumored that South Korean steelmaker POSCO or a joint venture of Italian companies could make a bid for Ilva.
In the meantime, it seems certain that the European Commission will start an official investigation against Italy to check if the Italian government is acting to save the company in contravention of EU rules preventing public help for private companies. This could threaten €300 million in finance to save the company as well as a €800 million state investment to reduce the environmental impact of Ilva.