The government of Italy has agreed to invest more than €1bn ($1.2bn) in ArcelorMittal’s troubled Ilva steelworks by 2022, through a state-owned holding company, Invitalia.
According to a recent statement, Invitalia will spend €400mn to mutually control AM InvestCo, ArcelorMittal’s subsidiary that owns the Taranto plant in southern Italy. Subsequently, the Italian firm will invest €680mn by May 2022 to acquire a 60pc stake in the company, while Arcelor will add €70mn for its 40pc share.
The Invitalia-AM Invest coalition will then focus on low-carbon green steelmaking operations and build a new 2.5mn mt electric-arc furnace. It intends to reach an output capacity of 8mn mt. Media reports also indicated that the plant will retain its 10,700 workers. ArcelorMittal had initially planned to lay off 5,000 workers to cut its losses.
(€1 = $1.21)