Steel Mills
ArcelorMittal and JSW to Bid for Ilva Steel
Written by Sandy Williams
October 3, 2014
Italian mill, Ilva Steel Italy expects bids from Indian steel producer JSW and a joint venture of ArcelorMittal and Italian steel processor Marcegaglia sometime within the next few days.
ILVA owner Riva Steel shut down all of its plants except the Taranto-based Ilva in September 2013 after more than 1 billion euros ($1.25 billion) of Riva Group assets were seized in connection with criminal activity associated with environmental disasters at the mill.
In 2012, emissions from the plant were found to contribute to high mortality rates from cancer and respiratory diseases in the Taranto area.
The plant has been under special administration by the Italian government since last year. The company has debt of approximately $2.5 billion and needs investment of at least $2.25 billion to meet compliance with environmental regulations.
ArcelorMittal could spend as much as $500 million for a 70 percent stake according to JP Morgan analyst Alessandro Abate. JSW’s bid could be in the range of $400-$500 million according to reports by India news sources.
“The ArcelorMittal-Marcegaglia team is the only serious alternative to the current ownership structure … as it would offer more credible guarantees … for employment and (the) company’s turnaround,” said Abate as reported by Reuters.
In 2013, production at Ilva was 5.7 million tonnes, slightly more than half of its 11 million tonnes capacity.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills
Hyundai still on for Louisiana steel mill despite US raid at Georgia battery plant
Hyundai has reaffirmed its commitment to build a steel plant in Louisiana following a US government immigration raid at its battery facility in Georgia.
Hybar lowers output forecast, owning up to EAF startup delay
Hybar LLC’s rebar mill in Osceola, Ark., is now melting scrap and will soon be fulfilling orders, according to CEO David Stickler, despite a six-to-eight-week delay caused by commissioning the world’s first Aura electrical system.
Steel Dynamics guides to more metal, more money in Q3
Steel Dynamics Inc. is bullish heading into the close of the third quarter, with all three of its operating segments tracking higher.
AHMSA opens doors to potential buyers as $1.3B asset auction nears
AHMSA is opening its doors to potential buyers to tour its steel plant and mining operations in northern Mexico in preparation for the next stage of its bankruptcy process: the auction of its assets.
USW seeks clarity on USS plans for Granite City Works
The United Steelworkers union has asked U.S. Steel to elaborate on its Granite City Works plans following reports that the steelmaker is ending processing at the facility.