Italian Ministry Mandates Negotiation for Ilva Sale to Flacks Group
The Italian Ministry of Enterprises has authorized negotiations for the sale of the Ilva steel complex to Flacks Group, aiming to complete the deal by mid-2026. Flacks Group's proposal includes a €500 million initial investment, a commitment to decarbonization, and plans to safeguard approximately 6,000 jobs while boosting annual steel production capacity to 6 million tons. The Italian state is expected to retain a 40% stake in Acciaierie d'Italia, with Flacks having the option to acquire an additional 40% later.
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The Italian Ministry of Enterprises and Made in Italy has authorized the extraordinary commissioners of Ilva and Acciaierie d'Italia to negotiate the sale of the steel complex to Flacks Group. The goal is to finalize the sale by mid-2026.
Flacks Group's offer includes an initial investment of 500 million euros and a commitment to decarbonization, safeguarding around 6,000 jobs while increasing annual steel production capacity to 6 million tons. The plan incorporates two electric arc furnaces producing 4 million tons and a blast furnace for an additional 2 million tons.
The company aims to use DRI and HBI as the primary input for electric furnaces, with natural gas initially serving as the main reducing agent. Flacks intends to announce plans for domestic DRI/HBI production within a few months, likely in Taranto.
The Italian state is expected to retain a 40% stake in Acciaierie d'Italia, with Flacks having an option for an additional 40% later. Approximately 8,500 jobs are to be preserved.
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