Flacks, an American private investment group based in the UK, announced that it has reached an agreement with the Italian government to acquire the former ILVA steel group, which has long been unprofitable and prone to environmental problems.
ILVA's main plant, located in Taranto in the Puglia region and one of Europe's largest integrated steel mills, has for many years been associated with environmental pollution and a high incidence of cancer in the surrounding area. The purpose of the acquisition agreement is to ensure the long-term future of the plant.
In a statement posted by Flacks Group of Florida on LinkedIn, the company emphasized that the deal will keep approximately 8,500 skilled workers employed and strengthen European supply chains that are crucial for the automotive, construction and infrastructure sectors.
The Group plans to invest up to 5 billion euros in the modernization of the plant, including electrification and furnace upgrades, in order to support decarbonization, increase efficiency and sustainable growth. The statement also notes that the Italian government will remain a strategic partner with a 40% stake, while Flacks Group will have an option to acquire an additional 40% stake at a later stage.
Commenting on the deal, Michael Flacks, Founder and Chairman of the Management Board of Flacks Group, stated: "Our goal is to make long-term investments, carry out responsible modernization and ensure a strong and sustainable future for this historic steel mill."
Author: SteelRadar Editorial Team
Steelradar.com
