ArcelorMittal and Italian assets to operate as separate commercial entities

Thursday, 12 November 2020 11:09:25 (GMT+3)   |   Brescia
       

SteelOrbis has learned that starting from November 10 ArcelorMittal and ArcelorMittal Italia, mainly consisting of the Taranto-based Ilva plant, will operate as two different commercial entities, based on an internal company note.

A source explained that one entity will sell the production of ArcelorMittal's plants outside Italy to anywhere, Italy included, while ArcelorMittal Italia will sell its material under new chief marketing officer Alessandro Faroni, who has replaced Carlo Malasomma.

"We still do not know what is the exact aim of this split, but from a practical point of view it is like having ArcelorMittal's employees competing against each other," the same source commented, adding, "I believe this separation will be functional in relation to something that will become clear only in the coming weeks."

Some other sources suggested the move may be linked to the ongoing talks between ArcelorMittal and the Italian government on a new industrial plan for Ilva, Europe's largest single steel site and the only integrated steelmaker in Italy. The plant, run by ArcelorMittal Italia, is currently producing at historically-low levels. According to the agreement of March 4 this year between the Italian government and the company, ArcelorMittal can exit from the plant by the end of this year paying €500 million, if the new investment contract is not signed by November 30.


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