The European Commission has approved a rescue loan of up to €390 million for Acciaierie d'Italia (Adi, formerly Ilva), Italy's largest integrated steel producer, in accordance with EU state aid rules. This is stated in the institute's message.
Acciaierie d'Italia operates eight production and service facilities, with the largest factory located in Taranto.
Acciaierie d'Italia is now facing difficulties: it has been in bankruptcy proceedings since February 2024 and is being sold through a tender process. Italy expects to complete the sale soon and transfer the activities to the selected bidder. So far, Adi is facing a serious need for liquidity to cover operating expenses such as supplier payments and salaries. The EU-approved rescue loan is designed to cover these operating costs in the coming months.
The EC determined that the amount of the rescue loan is proportional, as it is limited by the projected liquidity deficit and strictly limited by normal operating expenses. The loan is priced at the market rate available to competing companies and is limited to a period of six months. After that, Italy undertakes to submit a restructuring plan, a liquidation plan or a confirmation of compensation.
Neither the beneficiary (Adi) nor its predecessor (Ilva) have received bailout or restructuring assistance in the last 10 years.
The European Commission concluded that the rescue loan does not unduly affect competition with other steel producers and trade in the domestic market, and on this basis approved the Italian aid.
According to the Conquiste del Lavoro publication, loading and launching of blast furnace No. 2 at the Taranto facility, which has been idle for two years, is scheduled for about February 20. Currently, only blast furnace No. 4 is operating at the plant, and SOE No. 1 remains under confiscation.
A team of Flacks Group technical consultants has begun a visit to the facility, which is part of ongoing negotiations with Ilva and Acciaierie d'Italia commission agents on the acquisition of the entire industrial area.
