ArcelorMittal & Invitalia Pact for llva Postponed to December 11

Italian media reported that the signing of the agreement between ArcelorMittal and Invitalia is postponed to 11 December, as there are still some details to be
ArcelorMittal & Invitalia Pact for llva Postponed to December 11
Ilva SteelFIDH

Italian media reported that the signing of the agreement between ArcelorMittal and Invitalia is postponed to 11 December, as there are still some details to be defined, such as the value and methods of future investments. By the first months of 2021 the Italian state, through a capital increase, will assume a 50% share in the management of the llva facilities through an investment of EUR 400 million. The board of directors of the new company that will control llva will consist of six members, three from Invitalia who will choose the company president, and three from ArcelorMittal who will choose the CEO. During a second phase, Invitalia's stake should rise to 60%. This will happen in June 2022, when the state's agency will inject another EUR 800 million in the company.

Initially, production will be ramped up to 6 million tonnes per year, and later to 8 million tonnes when fully operational in 2025, then will there be full employment of the 10,700 direct workers.. Ilva will restart a blast furnace at Taranto at the end of January or in early February under the new plan. Ilva's plant in Novi Ligure, which produces hot-dip galvanised steel for the automotive sector, will also be restarting, although only after an investment required to start up the unit.

Now Ilva operates as a separate commercial entity from ArcelorMittal. However, 2 hurdels remain. The first is the employment issue, over which the worker unions are fighting. Then there are the environmental implications, on which the local environmental associations are pressing. At least 5 billion investments would be needed to introduce truly green technologies and move the plant away from the city, providing for the closure of the hot area.

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