Global steel giant ArcelorMittal has announced that AM Investco Italy Srl (AM Investco), ArcelorMittal ‘s consortium with Italian steel processor Marcegaglia, has concluded the exclusive negotiation phase and reached a binding agreement with the Italian government concerning the lease and obligation to purchase Italian steelmaker Ilva S.p.A and its subsidiaries.
Accordingly, investments of €2.4 billion will be made over a seven-year period to materially improve Ilva’s environmental footprint and realize its full potential. These investments include industrial capital expenditure of €1.3 billion, supporting an extensive industrial plan; an investment program focused on blast furnaces, steel shops and finishing lines and environmental capital expenditure of €1.1 billion that will ensure Ilva complies with the Integrated Environmental Authorisation (AIA) as set out by the Italian government and will materially improve Ilva’s environmental performance in areas including air emissions and water treatment.
According to ArcelorMittal’s statement, Ilva’s finished steel shipments will systematically be increased to 9.5 million mt by 2023 and crude steel production will be limited to six million mt per year until AIA provisions are complied with; once achieved, the company’s blast furnace No. 5 will be restarted and crude steel production will be increased to eight million mt per year. Meanwhile, Ilva’s crude steel production will be supplemented by imported slabs and hot rolled coil, in order to maximize utilization of its finishing facilities.