Ilva, a one-time giant Italian steel manufacturer, now called Acciaierie d’Italia (ADI), was formerly known as Ilva, with product lines that included wire rod. Below is an update on its recent status based on multiple media reports, including past WJI stories, but it starts with a brief look at its early days,
Ilva, founded on Feb.1, 1905, as Società Industria Laminati Piani e Affini (ILVA) in Genoa, Italy, had a long and successful run as a steel maker before encountering significant problems. Its heyday spanned several decades, particularly from the 1960s through the 1980s. In 1965, ILVA inaugurated its crown jewel: the Taranto steelworks, which became Europe’s largest steel plant. At its peak in the 1970s, the Taranto plant alone annually produced more than 17 million metric tons of steel and employed around 40,000 people, representing about 16% of Taranto’s population.
The company’s prosperous period lasted for about three decades, from the mid-1960s to the mid-1990s. In 1995, the Riva Group purchased ILVA from the Italian government, marking the end of its state-owned era and the beginning of a troubled period that would eventually lead to environmental and financial crises.
In 2012, the Italian court ordered Ilva to upgrade its production line to meet regulatory standards due to concerns about pollution harming people’s health. This decision came after prosecutors sought to close the steel mill following an inquiry into abnormal rates of cancer and respiratory diseases in the Taranto area.
Despite attempts to keep the plant running while improvements were made, Ilva continued to struggle. By 2024, the company was grappling with rising energy costs and weak demand, leading to reduced production and financial difficulties. This situation ultimately resulted in ADI being placed under state-led administration.
As of February 2024, Acciaierie d’Italia has been placed under the control of commissioners appointed by the Italian state. On Feb. 29, 2024, the Milan Bankruptcy Court declared a state of insolvency for the business, citing a debt of about US$3.37 billion as of Nov. 30, 2023. Prior to this, ADI was 62% owned by ArcelorMittal and 38% by Invitalia, a state-owned investment agency.
The company has faced ongoing financial difficulties due to increases in energy prices and a drop in rolled-steel coil prices. In early January 2024, ArcelorMittal initiated bankruptcy procedures, seeking special administration to allow ADI to reorganize its debts and obligations. The Italian government has taken steps to address the situation, including creating a guarantee fund for small- and medium-sized enterprises affected by ADI’s financial troubles. This recent development is part of a long history of financial struggles and environmental controversies surrounding the company, particularly its Taranto steelworks.
ADI has been in the middle of a bidding process for its acquisition. The company received 10 offers by the Jan. 10, 2025 deadline, with three bids for the entire business and seven for individual assets. The front runners for acquiring the whole company are Baku Steel Company (in consortium with Azerbaijan Investment Company), Jindal Steel International, and Bedrock Industries Management Co., Inc.
Today, ADI’s Taranto plant, Europe’s largest steel facility, continues to operate at reduced capacity. Some 10,000 people are still considered employed by the company, commissioners have requested a 12-month extension of temporary layoffs starting in March 2025, affecting 3,420 employees, with 2,955 specifically from the Taranto steel mill.
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