Flacks Group is reviewing its offer to acquire troubled Italian steel producer Acciaierie d'Italia (ADI) and intends to establish a new company, hoping that the Italian government will acquire a stake in it, CEO Michael Flacks confirmed to Kallanish.
The new company, called Flacksider, intends to ensure the continuity of production at the Taranto steel mill, build a direct cast iron recovery plant on site to power new electric arc furnaces (EDP) and gradually decommission existing blast furnaces. Flacks expresses dissatisfaction with the length of bureaucratic procedures in Italy and the slow pace of government decision-making.
He intends to gradually reinstate all direct workers, as well as resume the work of indirect workers and contractors. Flacks says he expects the government to respond to his proposal, but notes that the summer vacation period is slowing this process as the sector approaches a full shutdown in August.
According to Flacks, in response to a proposal from rival Jindal Steel International, the Indian company intends to turn Taranto into a steel processing plant, reducing the majority of workers and decarbonizing the environment by effectively closing blast furnaces and using semi-finished products.import of finished products from outside the European Union.
"I feel very sorry for all the workers who will actually lose their jobs," he says, adding that his own project will gradually restore workers and production, and any reduction in the workforce will only be temporary. Flacks predicts annual crude steel production of 4 million tons at full capacity.
Earlier, Flacks talked about negotiations with Metinvest and the Italian equipment manufacturer Danieli as possible partners. Danieli has confirmed its involvement with Kallanish, while Metinvest has not publicly commented on this. Sources we believe that both companies could participate in the new Flacksider company.
Earlier this year, Flacks established a technical committee to update the existing production plan for the relaunch of ADI.
Meanwhile, it is reported that the Italian government is actively negotiating with Jindal Steel about leasing ADI. The proposal presented by Jindal will focus mainly on post-processing. Production in Taranto will be heavily dependent on the import of slabs, which Jindal will supply from a future environmentally friendly steel plant in Oman. Decarbonization of the enterprise will be achieved by stopping the production of primary steel (see Kallanish passim).