The Ilva steel plant in Taranto, Italy, has received 10 bids, but only two companies are interested in purchasing all of the company’s assets. The two bidders, Bedrock Industries, a US investment company, and a consortium involving the US private equity firm Flacks Group and Slovak steel trader Steel Business Europe, are still in the running to take over Ilva. The other eight bidders have expressed interest in acquiring single assets held by the company.
The initial frontrunners, Azerbaijan’s Baku Steel Company and India’s Jindal Steel International, have withdrawn from the tender. Baku Steel abandoned its plans due to local opposition to the deployment of a regasification vessel, which was necessary for its project to power more environmentally friendly electric furnaces. Jindal Steel has shifted its focus to Germany’s Thyssenkrupp, which is also on the market.
The Italian government has been trying to sell Ilva, which was once Europe’s largest steel plant, due to its poor management and environmental concerns. The plant has faced years of financial turmoil, with the state injecting funds to keep it afloat. The government has cited its strategic importance as the reason for its support.
The latest tender round closed on Friday, and Acciaierie d’Italia, the national steelmaker, said its commissioners would need time to examine all the offers. They will focus on employment aspects, decarbonization, and investment amounts to ensure the sustainable development of the plant.
However, Italy’s metalworkers’ union, UILM, has criticized the tender, calling it “a total failure.” The union said that the two investment funds bidding for all of Ilva’s assets lack industrial credibility and that nationalization is the only way forward to avoid the total closure of the plant and an environmental, employment, and economic disaster. The union’s statement highlights the concerns of the workers and the community about the future of the plant and the potential consequences of its closure.