Flacks discusses Marcegaglia, Metinvest, and Danieli ADI's support for resuming operations
The Flacks Group of Companies is negotiating with the Italian steel and rolling machine manufacturer Marcegaglia, as well as with Metinvest and technology supplier Danieli on an industrial plan that Flacks intends to implement for Acciaierie d'Italia (ADI) after its acquisition.
This was confirmed to Callanish by Michael Flacks, Chairman of the Board of Flacks, Antonio Marcegaglia, and Alessandro Brussi, President of Danieli
.The completion of the transaction may take longer than originally planned due to the complex and lengthy bureaucratic procedures in Italy. Antonio Marcegaglia confirms that he is negotiating with Flacks, but excludes the possibility of acquiring an equity stake. "The goal is to support and strengthen the future company's industrial plan by significantly increasing roll production in the future," he says.
The implementation of the industrial plan will require a technology partner and a major supplier such as Marcegaglia, while Metinvest will act as an industrial partner supporting the project in the supply of raw materials. According to Broussy, Danieli and Flacks are currently exchanging views on the future industrial plan and technological component of the project, although discussions remain at a preliminary stage.
The deal is progressing, and the Flacks team is working with the Italian government to finalize it. However, given the scale and complexity of the project, which involves the complete reconstruction of the steel mill in Taranto, according to Broussy, this process will require time and a detailed study of the structure. He notes that Danieli is known worldwide for its advanced low-carbon technologies.
Of the more than 5 billion euros ($5.89 billion) of investments planned by Flacks in the former Ilva facility, about 3 billion euros will be allocated for new equipment, including three electric arc furnaces and, possibly, a direct cast iron recovery unit.
Broussy confirms that Danieli is in contact with the Flacks technical team, which he describes as experienced professionals with in-depth knowledge of the plant. However, at this stage, discussions are focused on the exchange of technical information and concepts, as it will take time to determine the complexity of the project and the significant financial structure.
In a recent interview with Kallanish, Flacks noted that although the Italian government has recommended bringing in an industrial partner, this is not an obligation. He added that he appreciates the advisory contributions of Metinvest, Marcegaglia and Danieli. Flacks and other sources dismiss the possibility that Italian steel producer Arvedi will become a shareholder, as some have suggested.