Italy delays handover of Ilva steelworks to ArcelorMittal
Reuters reported that Italy’s new government, led by 5-Star Movement, which governs in coalition with far-right League, has postponed its planned handover of the heavily polluting Ilva steel plant to ArcelorMittal by two and a half months to September 15 as Rome seeks more time to rejig the terms of the deal. New coalition government of Italy, chaired by Giuseppe Conte, plans to revise the terms of the deal with ArcelorMittal, concluded a year ago by the government of Gentiloni. Industry Minister Luigi Di Maio, whose party has long campaigned to close the plant, said on Tuesday evening the handover would be delayed. He said “I am evaluating every possible impact related to the decisions I will have to make, impact on environmental, social, economic and employment terms.”
Di Maio said Ilva would not need a bridge loan to cover its production costs in the coming months.
5-Star has campaigned for years to close Ilva, but rather than tear up the deal with ArcelorMittal, he has begun talks with business leaders, local officials and trades unions. The discussions point to the kind of compromise 5-Star will have to make with the pro-business League, which wants the plant to remain open, to maintain their partnership.
The plant in southern Italy has been under state-supervised special administration since 2015, after magistrates said it must be cleaned up or closed. As previously reported, in June 2017, the Italian government agreed to sell the largest in Europe metrocombine Ilva company Am Investco, a joint venture of the transnational corporation ArcelorMittal and the Italian Marcegaglia. The offer of Am Investco provides for an investment of EUR 2.4 billion, of which EUR 1.25 billion will be invested in technology, and EUR 1.15 billion in environmental projects. The purchase price of Ilva's assets will be EUR 1.8 billion, as well as an annual rent of EUR 180 million. At the same time, the plan provides for a reduction in the number of personnel in 2018 to 9407 people with a further decrease to 8480 by 2023. At the moment, the company employs 14220 workers, as well as 4,100 people on outsourcing.
Source : Reuters and uaprom.info