Steel Mills

ArcelorMittal Submits Bid for Ilva Steel
Written by Sandy Williams
November 28, 2014
ArcelorMittal and Italian steel processor Marcegaglia have submitted a non-binding, 30-day deadline offer for troubled Italian steel plant Ilva.
Ilva, a privately owned company by Riva Steel, has been under special administration since last year after a court order temporarily shut down a portion of the plant for environmental violations. Toxic factory emissions were found to contribute to a high mortality rate from cancer and respiratory disease in the Taranto region.
Parent company Riva Steel was forced to cease operations of all of its plants in Italy, except Ilva, after Italian police seized almost €1 billion assets of the group in September, 2013. The seizure was ordered during an investigation of Ilva management for criminal activity associated with environmental disasters at the mill.
The plant has a production capacity of 11 million tonnes but produced only about half that (5.7 million tonnes) in 2013. The company has a net debt of roughly $2.5 billion and will require an estimated investment of $2.24 billion to bring the plant into environmental compliance.
ArcelorMittal CEO Lakshmi Mittal indicated continued interest in the mill during the third quarter earnings conference. Purchase price in the bid offers from ArcelorMittal and Marcegaglia, and rival bidder Italian steel producer Arvedi, were not disclosed. JP Morgan estimated in October that ArcelorMittal could spend as much as $500 million for a 70 percent stake in Ilva.
“We (have) submitted a non-binding offer to acquire all of Ilva’s operations. We look forward to continuing discussions with Commissioner Gnudi concerning our offer,” an ArcelorMittal spokeswoman said.
Ilva employs 16,000 workers at the plant.

Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills

Steel Summit: Schneider sees SDI ‘on the edge of a very good run’
Steel Dynamics Inc. (SDI) President and Chief Operating Officer, Barry Schneider, remains bullish about the Fort Wayne, Ind.-based steelmaker’s position in the current market.

Steel Summit: Burritt says USS and Nippon are fast-tracking modern steelmaking
U.S. Steel President and CEO David Burritt told audiences at SMU's Steel Summit 2025 that the iconic American steelmaker’s partnership with Nippon Steel is fast-tracking smarter steel production.

Nucor moves to stop HRC price slide with $10/ton hike
Nucor is attempting to halt the decline in hot-rolled coil prices with the announcement of a $10-per-short-ton increase in its weekly consumer spot price on Monday.

Explosion rocks ArcelorMittal’s DR plant in Mexico
ArcelorMittal reported a "strong" explosion at the direct reduction part of its massive Lazaro Cardenas mill in Mexico.

SDI to acquire remaining stake in New Process Steel
Steel Dynamics Inc. (SDI) announced that it has agreed to acquire the remaining 55% equity interest in New Process Steel.