ArcelorMittal has announced its decision to split the operations of its Italian steel asset Ilva. ArcelorMittal and Ilva will operate as two separate companies.
According to a press release from ArcelorMittal, the company has reached an agreement with the Italian government regarding an Italian steel mill. Arcelor, which currently leases the assets from the state, will have until May 2022 to acquire them. In addition, the agreement refined the scope of the agreement to include investments in innovative and environmentally friendly technologies for the production of low-carbon steel.
The agreement also states that the Italian government must make a significant capital investment in the steel plant. If the government is unable to fulfill its investment obligations by 30 – e November 2020, the company will have all the rights to withdraw from the contract, subject to the payment of the agreed amount.
The management of the company has decided to cease all commercial activities related to Ilva products.
It should be noted that ArcelorMittal provides full support to the Italian division, which in turn has helped it improve relations with the government. However, the plant continues to operate with a low capacity utilization factor.