According to local media reports, in a significant development for the Italian steel industry, a consortium of local steel companies, spearheaded by Marcegaglia, has moved to acquire key assets of Acciaierie d’Italia, the operator of the sprawling Ilva steel complex in Taranto. The consortium, which also includes Sideralba, Eusider, and Industrie Metalli Cardinale, aims to secure plants in Novi Ligure, Racconiggia, Salerno, and a facility in France. While the Italian group pursues these assets, the main steel mill in Taranto remains the focus of international interest, particularly from two large foreign investors: India's Vulcan Green Steel and Azerbaijan's Baku Steel.
The ongoing negotiations are complex, with Vulcan Green Steel having previously tried to acquire Ilva in 2017, but ultimately losing out to ArcelorMittal. Now, Vulcan is renewing its bid, this time with a focus on decarbonizing the steel production process using green hydrogen. Similarly, Baku Steel is working closely with the Italian government, considering the possibility of contributing to the decarbonization of the Taranto plant by supplying natural gas through a floating regasification unit. Both companies have been actively inspecting the Taranto facilities and other sites under Acciaierie d’Italia’s management. However, due to the intricacies of the deal and the technical requirements, a final decision on the sale is expected to be delayed, with a new bid deadline potentially extending from November 30, 2024 to January 10, 2025.
The sale of Acciaierie d’Italia’s assets includes a diverse portfolio of 10 facilities, with the core assets managed under the Ilva S.p.A. brand. These facilities have been under lease until 2030 but will be transferred as part of the acquisition deal. According to the administrators overseeing the sale, the transaction could generate around €1.5 billion, which will be used to revitalize the company’s infrastructure and invest in technological upgrades. Approximately €1 billion of the proceeds will go towards modernizing equipment, while another €680 million will be allocated for implementing innovative solutions, including measures aimed at reducing the carbon footprint of steel production.
Environmental challenges remain a significant hurdle for Acciaierie d’Italia, particularly at the Taranto plant, which has long been one of Europe’s largest sources of steel. In recent months, the Italian Ministry of Environment raised concerns about nitrogen oxide emissions from Blast Furnace No. 4, which exceeded permissible limits. As part of the ongoing regulatory requirements, Acciaierie d’Italia has been given 30 days to address these environmental violations. This issue highlights the pressure the company faces in balancing its production activities with its environmental obligations, a challenge that any potential buyer will need to address as part of their modernization plans.
As the consortium of Italian companies seeks to acquire the assets, it positions itself as a domestic alternative to foreign bidders. This is part of a broader strategy to maintain a significant portion of Italy’s steel production under national control. The Marcegaglia-led group emphasizes the importance of preserving Italian jobs and technology within the country, particularly in the face of foreign competition. This is in stark contrast to the interests of Vulcan Green Steel and Baku Steel, both of which have shown a keen interest in taking over the entire Acciaierie d’Italia operation, with a strong focus on decarbonizing the steelmaking process and integrating green technologies.
Despite these environmental and political challenges, there are signs of progress at Acciaierie d’Italia itself. On October 15, 2024, the company successfully restarted Blast Furnace No. 1 at its Taranto facility, signaling a positive step in its recovery plan. The restart of this furnace is a key milestone for the company, as only Blast Furnace No. 4 had been operational in recent months. However, Blast Furnace No. 5 remains out of service, while Blast Furnaces No. 1 and 2 were shut down for maintenance earlier in the year. Despite this, Acciaierie d’Italia remains committed to reaching a steel production target of 1.9–2.2 million metric tons in 2024, although industry sources suggest that actual production may fall short of this target. The company is also planning to restart Blast Furnace No. 2 in the first quarter of 2025, further stabilizing operations.
The Marcegaglia consortium’s acquisition plan will undoubtedly play a crucial role in the future of Acciaierie d’Italia, as well as in the broader evolution of Italy’s steel industry. In addition to navigating the environmental and operational challenges, the new owners will need to oversee a massive modernization effort to bring the steel plants in line with the EU’s green transition goals. This transformation will require substantial investments in decarbonization technologies, including the adoption of more energy-efficient practices and the reduction of carbon emissions throughout the production process. The competition between Italian, Indian, and Azerbaijani investors will also shape the future landscape of the Italian steel sector, with all parties vying for a share of the market and the opportunity to lead in the green steel revolution.
In the coming months, the ongoing negotiations and final acquisition decisions will define the next chapter for Acciaierie d’Italia, a company at the crossroads of modernization, environmental responsibility, and global competition. The successful transition of this steel giant into a more sustainable and competitive entity will have ripple effects throughout the European steel industry, influencing the policies and strategies of other steelmakers in the region as they navigate the increasingly complex world of green steel.
