Ilva S.p.A. is an Italian steel company in Taranto that for much of the 20th century was Italy's largest steel producer and one of the largest in Europe. In June 2017, Arcelor Mittal became the chief shareholder.[2] In 2020, the company returned to commissioners' management and ownership of the Italian state. On 23 April 2021, capital was infused by the government of Mario Draghi, which took a 38% share and 50% of the voting rights.[3]
 | |
| Company type | State-owned company |
|---|---|
| Industry | Steel |
| Founded | 1905 |
| Fate | Acquired by Gruppo Riva |
| Headquarters | Genoa, Italy |
Key people | Oscar Sinigaglia Agostino Rocca Giovanni Gambardella Lucia Morselli |
| Products | Flat steel products, stainless steel, alloy steel |
| Revenue | $7.7 billion (1989)[1] |
| $487 million (1989)[1] | |
Number of employees | 10000 |
| Website | acciaierieditalia |
History
editIlva was established in 1905 in Genoa and existed through the decline of European steel manufacturing during the 1970s and 1980s until its final privatization in 1995. Ilva main assets, including giant Taranto steelworks, Europe's largest, were acquired by Gruppo Riva. In 2012 Taranto steel plant was at the centre of an environmental scandal that led to the arrest and conviction of some Riva family members and the transfer of the steelworks to ArcelorMittal.
Early history (1905–1934)
editThe company was founded in Genoa on 1 February 1905, its namesake being the Latin name for Elba island, seat of plentiful iron ore deposits that fueled the first blast furnaces built in Italy in the late 19th century.[4]
Ilva was born from the merger of the steel activities of Siderurgica di Savona group, of Acciaierie di Terni and of its subsidiary Ligure Metallurgica. The initial share capital of the limited company was 12 million Italian lire, that was increased to 20 million lire when Elba group joined shortly after. The new company, controlled by Genoese financers, was set up with the political and financial backing of the Italian state, in order to build the Bagnoli steel plant, as part of the 1904 law for the development of Naples, prepared by economist and later prime minister Francesco Saverio Nitti. During the First World War Ilva benefited from big state contracts, but the end of the war effort and the postwar recession, combined with the effects of the red scare of 1920-21, brought it close to bankruptcy and in 1922 Banca Commerciale Italiana assumed control of the company.[5]
From IRI to italsider (1934–1995)
edit
Ilva continued to struggle during the 1920s, until the 1929 crash dealt a fatal blow to the company, that in 1934 was eventually acquired by IRI, the public holding company established in 1933 by the Fascist regime to rescue, restructure and finance banks and private companies that went bankrupt during the Great Depression. Ilva thus became part of Finsider, IRI's holding specializing in steel production (that controlled also Acciaierie di Cornigliano S.p.A. steelworks, known as SIAC, and many other smaller steel companies, among which Terni Acciai Speciali S.p.A. (it.) and Dalmine S.p.A.). After the Second world war, IRI president Oscar Sinigaglia used Marshall Plan funds to rebuild and modernize SIAC steelworks in Cornigliano and merged them with Ilva in 1961, creating a new company called Italsider.[5] The new company expanded rapidly in the 1960s. In 1965 giant Taranto integrated iron and steel complex became operational, employing 5,000 workers and adding 10.5 million tons of capacity to Italsider.[6] However, by the early 1970s steel production in the EEC was suffering from overcapacity and foreign competition. Italsider made no exception, taking very heavy losses during steel crisis that hit all the Western economies in the late 1970s and especially in the 1980s. In 1984 Italsider sold SIAC to COGEA, a consortium of private steel companies dominated by Falck Group, that in turn resold it to Gruppo Riva in 1988.[7] In 1992 Italsider, in a last attempt to reduce overcapacity and losses, closed Bagnoli steelworks in Naples
Gruppo Riva ownership and environmental scandal at Taranto (1995–2012)
edit
In 1995 the Italian state decided to get rid of loss-making Ilva and its subsidiaries. Gruppo Riva purchased the Taranto steel plant, the German-based multinational ThyssenKrupp took over Acciai Speciali Terni S.p.A. (AST); Dalmine S.p.A. (steel pipes and tubes) was sold to Tenaris; and other plants were ceded to Gruppo Lucchini.[8] Thus, Gruppo Riva came to own Taranto steelworks in southern Italy, Europe's largest steel plant.[9] During a 2012 inquiry, Taranto steel plant has been found to produce elevated emissions of dioxin, correlated to abnormally high cancer incidence in the area, bringing to the seizure of the plant by the Italian state.[10] According to the European Pollutant Emission Register, emissions of dioxin by Taranto steel plant accounted for 30.6 per cent of all emissions in Italy in 2002,[11] and much more according to an inquiry by PeaceLink NGO.[12]
From the commissioners to ArcelorMittal (2012–2018)
editIn 2012, an investigation for environmental crimes and pollution led the Taranto prosecutor to order the seizure without the right to use the plants in the furnace area. To safeguard the establishment and employment, the Italian government initiated the company commissioner procedure and launched an international tender for an assignment of the same.[citation needed] Since January 2015, the company has been under extraordinary administration pursuant to the Marzano Law.[citation needed]
By March 2017, ArcelorMittal was leading a consortium bidding for Ilva.[13][14] The ArcelorMittal consortium was selected as the preferred bidder over a different consortium led by JSW Steel after it was able to pledge a production increase and guarantee employment levels. The final decision was waiting on Italy's ministry of economic development.[14] In June 2017, the lease was agreed.[15]
On 5 June 2017, ArcelorMittal and partners won approval to purchase Ilva for €1.8 billion. The buyers were the AM Investco consortium, which beyond ArcelorMittal included Marcegaglia and Banca Intesa Sanpaolo. In its bid, AM Investco also pledged to make investments into Ilva of €2.4 billion until 2023.[2] The consortium's plan would cut the 14,220 jobs down to under 10,000 by 2018 and would stabilize at 8,500 by 2023.[16]
In November 2017, the agreement had yet to be approved by the European Commission competition bureau.[17]
ArcelorMittal Italia (2018–2020)
editILVA became part of ArcelorMittal Group as of 1 November 2018.[citation needed] The Italian government wanted to hold ArcelorMittal liable for the health impacts of the steel plant.[18] On 5 November 2019, ArcelorMittal announced its intention to withdraw from the transfer agreement, returning it to Ilva, in extraordinary administration, within 30 days.[19]
Procedures to shut down the plant were started, then on 18 November interrupted under legal and political pressure.[20]
Return to ownership of the Italian state (2020–2021)
editIn 2020, the process of returning to commissioners' management and ownership of the Italian state began, under the protection of the penal shield. The implementation of all the modernization procedures and environmental sustainability of the Taranto plant would continue.[21][22][23][24]
Acciaierie d'Italia (2021–present)
editOn 23 April 2021, an extraordinary meeting of shareholders approved the change of the company name of Am InvestCo Italy to Acciaierie di Italia Holding. Its subsidiaries also changed names: Arcelor Mittal Italia became Acciaierie d'Italia, Arcelor Mittal Italy Energy became AdI Energia, ArcelorMittal Italy Maritime Services became AdI Servizi Marittimi, ArcelorMittal Italy Tubular became AdI Tubiforma and ArcelorMittal Socova became AdI Socova. It was forecast at the time that, because of scheduled additional investments, in 2022 the Italian state would control 60% while ArcelorMittal would hold the balance.[3] Instead, currently Acciaierie d'Italia Holding is held by Invitalia, with a stake of 38%, while the remaining 62% is owned by ArcelorMittal SA.[citation needed]
Return of the commissioner management under the control of the Italian State (2024)
editStarting from February 2024, Acciaierie d'Italia is under the commissioners' control of the Italian State.[25][26]
See also
editReferences
edit- ^ a b The European Union and national industrial policy. Routledge. 1996. pp. 72–73. ISBN 0-203-43880-9.
- ^ a b Pooler, Michael (6 June 2017). "ArcelorMittal wins race to buy Italian steel business Ilva". Financial Times. United Kingdom. Retrieved 8 June 2017.
- ^ a b Valentini, Paola (23 April 2021). "L'Ilva diventa Acciaierie d'Italia" (in Italian). Milano Finanza Editori S.p.A.
- ^ "Ilva". treccani.it. Treccani. Retrieved 5 November 2019.
- ^ a b Tolaini, Roberto. "Ilva-Italsider. Storia" (PDF). www.storiaindustria.it. Centro online storia e cultura dell'industria. Retrieved 26 April 2020.
- ^ King, Russell (2015). The industrial geography of Italy. Rutledge. ISBN 978-1138854406.
- ^ Meny, Yves; Wright, Vincent (1987). The Politics of Steel: Western Europe and the Steel Industry in the Crisis Years (1974-84). Berlin: Walter De Gruyter. p. 462. ISBN 0899251943.
- ^ "Conflicts over restructuring in steel sector". Eurofound. Retrieved 26 March 2020.
- ^ "The travails of "ex-Ilva", Europe's largest steel plant". The Economist. 27 February 2020. Retrieved 27 March 2020.
- ^ "Europe's largest steelworks : Jobs v health". The Economist. 28 September 2012. Retrieved 26 April 2020.
- ^ Riva, Gigi (30 March 2007). "La Puglia dei veleni". L'Epsresso. Retrieved 27 March 2020.
- ^ "Peacelink" (PDF). Retrieved 31 January 2009.
- ^ Pooler, Michael; Politi, James (5 March 2017). "Bidding race to win Europe's biggest steel plant heats up". Financial Times. United Kingdom. Retrieved 8 June 2017.
- ^ a b Pooler, Michael; Politi, James (26 May 2017). "ArcelorMittal-led group leads race to buy Ilva steel plant". Financial Times. United Kingdom. Retrieved 8 June 2017.
- ^ "ArcelorMittal led consortium reaches agreement regarding Ilva lease and purchase agreement". Verizon Media. Yahoo Finance. 16 June 2017.
- ^ "ArcelorMittal-led consortium wins tender to buy Italy's ILVA". China Daily. Xinhua. 6 June 2017.
- ^ "ArcelorMittal Consortium in Talks With EC for Ilva Buyout". Nasdaq, Inc. 14 November 2017.
- ^ ArcelorMittal steigt bei italienischem Stahlwerk aus 4 November 2019, Der Spiegel
- ^ "AM InvestCo Italy sends withdrawal and termination notice from the lease and purchase agreement for Ilva business". corporate.arcelormittal.com. Retrieved 12 December 2019.
- ^ "A.Mittal has suspended furnace switchoff at Taranto steelworks - union - English". ANSA.it. 18 November 2019. Retrieved 12 December 2019.
- ^ "Ilva, interviene la procura di Milano e i commissari fanno ricorso d'urgenza". milanofinanza.it. 16 November 2019. Retrieved 16 November 2019.
- ^ "Ex-Ilva, i commissari denunciano Arcelor Mittal". ilsole24ore.com (in Italian). 16 November 2019. Retrieved 16 November 2019.
- ^ "Ex Ilva, ArcelorMittal spegne tutti gli altiforni: chiusura definitiva a gennaio" (in Italian). ilsole24ore.com. ilsole24ore.com. 16 November 2019. Retrieved 16 November 2019.
- ^ "Ex Ilva, Conte: non consentiremo la chiusura, ArcelorMittal pagherà i danni" (in Italian). ilsole24ore.com. ilsole24ore.com. 15 November 2019. Retrieved 17 November 2019.
- ^ "Ex Ilva Taranto, rottura tra governo e ArcelorMittal: salta accordo su ricapitalizzazione". tg24.sky.it. tg24.sky.it. 8 January 2024. Retrieved 7 October 2024.
- ^ "Salta il tavolo sull'ex Ilva di Taranto, governo propone aumento di capitale e salita al 66%: ArcelorMittal si rifiuta di investire". tgcom24.mediaset.it. tgcom24.mediaset.it. 8 January 2024. Retrieved 7 October 2024.