ArcelorMittal rejects Ilva's 7 billion euro lawsuit and confirms subpoena
ArcelorMittal says there are no legal grounds for a 7 billion euro ($8.32 billion) lawsuit filed by special commissioners of the Italian Steel Manufacturers Association (ADI) against the Taranto steel mill, formerly known as Ilva. The Global Steel Group confirms that it has received an order to appear in court in Milan.
In a letter received by Kallanish, the steel company rejects all the allegations contained in the lawsuit. These include allegations that this prompted ADI's directors and local management to commit mismanagement as part of a strategy to reduce Italian assets, damage ADI's business and extract profits from Italy. The company denies that its actions have caused damage estimated at about 7 billion euros.
Since 2021, ADI's holding company, Acciaierie d'Italia Holding (ADIH), has been under the joint and equal control of the Italian state investment company Invitalia. The Italian government has appointed Invitalia to implement a public-private partnership with the aim of resuming operations and eventually acquiring the former assets of Ilva.
According to ArcelorMittal, the company fulfilled all its contractual obligations, did not exert undue influence on management and invested about 2 billion euros in an attempt to change what it calls a "business with structural problems."
The steel mill claims that shortly after the acquisition of the former Ilva, its operations were "affected by the hostile attitude and deliberate actions and inaction on the part of Invitalia and Ilva, as well as the inaction and illegal legislative intervention of the Italian government."
"Most notably, in 2019 – less than a year after ArcelorMittal began leasing production units – the Italian government lifted the legal protections that ArcelorMittal needed to implement its environmental protection plan without the risk of criminal charges stemming from the status of the enterprises. This withdrawal, which led to non-fulfillment of the conditions preceding the purchase, eventually led to the termination of the relevant lease agreement by ArcelorMittal," the group notes.
Invitalia has not fulfilled its obligations specified in the relaunch plan, despite several proposals put forward by ArcelorMittal. Moreover, the measures taken in February 2024 allowed Invitalia to place ADI under special management, which, according to ArcelorMittal, led to a "significant expropriation" of its investments.
According to ArcelorMittal, ArcelorMittal's accusations do not take into account the responsibility of Invitalia and the Italian government within the framework of the public-private partnership, as well as the impact that their