Italy will begin exclusive talks with an Azeri consortium about the sale of Italian steel company Acciaierie d’Italia (ADI), formerly known as Ilva, Industry Minister Adolfo Urso said on Thursday.
The consortium investors interested in taking over ADI are Baku Steel and Azerbaijan Business Development Fund, a person with knowledge of the matter said.
ADI, which is under state administration after struggling to maintain production amid rising energy costs and weak demand, is a major headache for Italian Prime Minister Giorgia Meloni because its closure would have major knock-on effects for the country’s manufacturing sector.
“The commissioners (running the company) have pre-announced to me that they will send a formal request today to be authorized to negotiate with the Azeri consortium that made the best proposal,” Urso told reporters on the sidelines of an event in Bologna, northern Italy.
In February, both Baku Steel and the Indian company Jindal Steel International raised their preliminary bids for ADI.
The government took charge of the ADI’s factories in Italy last year under a special administration procedure, ending weeks of clashes with its then top shareholder ArcelorMittal (MT.LU), opens new tab, the world’s second-largest steelmaker.
Acciaierie d’Italia (ADI)’s commissioners aim to produce 3.5 million tonnes of steel in 2025,
The Taranto steel plant, operated by Acciaierie d’Italia, is among Europe’s largest integrated steel production facilities. At full capacity, it can produce approximately 20,000 tons of steel per day, equating to an annual output of around 7.8 million tons.