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
Nucor lowers 2024 output estimate for Brandenburg plate mill
Nucor has lowered the 2024 production estimate for its Brandenburg, Ky., plate mill due to soft market conditions.
SSAB adjusts output in weak Q3, readies for Q4 rebound
SSAB said lower plate prices in the US were the primary reason for reduced results in the second quarter. With a dismal Q3 outlook, the Swedish steelmaker is adjusting production across its facilities. That includes moving up its annual US mill outage in anticipation of a better Q4. SSAB Americas Revenues in the Americas segment […]
Topalian puts focus on “unfair” trade, eyes USMCA partners
Nucor’s top executive expressed concerns over unfair trade practices, highlighting increased steel imports from Mexico and Canada.
Cliffs sees close of Stelco buy, bottom to steel tags, and Mexico out of USMCA
Cleveland-Cliffs expects its acquisition of Canada’s Stelco to close later this year, which will help the the Cleveland-based steelmaker as a bottom to steel tags nears.
Nucor posts lower Q2 earnings, predicts tough Q3 too
Nucor recording lower second quarter earnings on falling steel prices. And the Charlotte, N.C.-based predicted that profits would be lower still in the third quarter, primarily because of weaker results from its steel mills divisions.