ILVA: ArcelorMittal and Marcegaglia submitted an offer
ArcelorMittal and Marcegaglia officially submitted an offer for the acquisition of Ilva. This is the first step in a multi-stage process that will see only the environmental part of the offer discussed for the next 120 days. Following this period the government will provide more clarity on the next steps of the offer process.
In particular, the offer submitted outlines:
• a commitment to improving Ilva’s environmental performance, through the installation of best available technology, bringing Ilva in-line with European environmental standards and legislation;
• the intention to increase Ilva’s primary utilisation rate, with crude steel production rising from the current level of c. 4.8 million tonnes per annum, to over 6 million tonnes per annum by 2020, and to maintain the operation of a minimum of three blast furnaces;
• a major capital expenditure programme aimed at enhancing Ilva’s asset capabilities, increasing productivity levels and improving health and safety performance;
• the introduction on new, innovative steel grades, facilitating an increase in the proportion of high value-added steel products in Ilva’s product mix;
• a commitment to guaranteeing employment at industry best practice levels;
• the economies of scale from which Ilva would benefit by being a part of ArcelorMittal, including leveraging ArcelorMittal’s global research and development expertise, sales and distribution networks, purchasing power, and technical steelmaking and market knowledge.
“Ilva has always been a vital asset in the entire Italian steel chain” - commented Antonio Marcegaglia, President and CEO Marcegaglia - “and we need to ensure it can continue to be in the long-term. Our consortium – based on a long-term industrial relationship – combines the strengths and the management competences of the world and European leader in the steel industry, with those of Marcegaglia, which include a unique knowledge and presence in the Italian and European downstream market. On this basis, we believe our consortium is the best equipped to take on the challenge of the Ilva turnaround”, concluded Mr. Marcegaglia.
Geert Van Poelvoorde, executive vice president and CEO, ArcelorMittal Europe Flat Products, commented: “We believe Ilva represents a compelling investment opportunity for ArcelorMittal without compromising our balance sheet strength, as it would extend our leadership position and increase our product offering in Italy, Europe’s second largest steel manufacturing and consuming market”.
Read here the full press release.