ArcelorMittal wants 'amicable' deal on Italy steelworks

ArcelorMittal has again offered to sell its stake in a huge Italian steelworks after Rome moved to put it under state supervision, according to a letter cited by the ANSA news agency Saturday.

The letter was sent by the global steel giant's chief executive, Aditya Mittal, to Italian Prime Minister Giorgia Meloni two days ago, ANSA reported.

When questioned by AFP, ArcelorMittal declined to comment.

Meloni's hard right government on Thursday said it had taken the first step towards placing the struggling ex-Ilva steelworks -- one of the largest in Europe -- under state supervision.

Talks with majority-owner ArcelorMittal had broken down over how to keep production going and secure thousands of jobs at the plant in the southern city of Taranto.

In the letter, according to ANSA, Mittal said he was keen to find an "amicable solution" and avoid "unilateral and extreme" moves.

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"We have offered to sell our entire stake to Invitalia (the Italian state investment body), for a price that reflects only a fraction of our cash investment," he wrote - and that offer "remains on the table".

But if the government does not want that, "we are willing to remain as a strategic minority partner... while the government decides on a permanent solution".

Debt problems

The site is run as a joint venture between ArcelorMittal, the world's second largest steelmaker, which holds 62 percent, and the Italian state, which has held 38 percent since 2021.

Rome considers the site a strategic asset, but the operator -- Acciaierie d'Italia -- is heavily in debt.

It is no longer able to pay many of its suppliers or utility bills, and the plant is at risk of having its gas shut off.

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Italian Enterprise Minister Adolfo Urso earlier told reporters that "we cannot lose any time".

"We have activated the procedure that could lead to special administration in a few weeks," he said.

"On the other hand, if ArcelorMittal makes proposals that are in line with what the government considers absolutely necessary, for the protection of the plant and the relaunch of production, the shareholders can obviously discuss it among them," he said.

Special administration would involve appointing commissioners to manage the company and draw up a rescue plan, pending the arrival of a new investor.

Source: AFP