Steel Mills
ArcelorMittal and JSW to Bid for Ilva Steel
Written by Sandy Williams
October 3, 2014
Italian mill, Ilva Steel Italy expects bids from Indian steel producer JSW and a joint venture of ArcelorMittal and Italian steel processor Marcegaglia sometime within the next few days.
ILVA owner Riva Steel shut down all of its plants except the Taranto-based Ilva in September 2013 after more than 1 billion euros ($1.25 billion) of Riva Group assets were seized in connection with criminal activity associated with environmental disasters at the mill.
In 2012, emissions from the plant were found to contribute to high mortality rates from cancer and respiratory diseases in the Taranto area.
The plant has been under special administration by the Italian government since last year. The company has debt of approximately $2.5 billion and needs investment of at least $2.25 billion to meet compliance with environmental regulations.
ArcelorMittal could spend as much as $500 million for a 70 percent stake according to JP Morgan analyst Alessandro Abate. JSW’s bid could be in the range of $400-$500 million according to reports by India news sources.
“The ArcelorMittal-Marcegaglia team is the only serious alternative to the current ownership structure … as it would offer more credible guarantees … for employment and (the) company’s turnaround,” said Abate as reported by Reuters.
In 2013, production at Ilva was 5.7 million tonnes, slightly more than half of its 11 million tonnes capacity.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills
USW says opposing USS/Nippon deal is First Amendment right, seeks lawsuit dismissal
The union says the suit is "a frivolous and unsubstantiated attack on our union simply for exercising our First Amendment rights."
AISI: Weekly raw steel output ticks higher
The volume of raw steel produced by US mills slightly increased last week, according to American Iron and Steel Institute (AISI) data. Last week’s production rate represents the second-highest level recorded this year.
Opening briefs filed in Nippon/USS lawsuit vs. US government
Together, Nippon Steel, Nippon Steel North America, and U.S. Steel announced the filing of their opening brief in their litigation to invalidate the government’s decision to block their announced merger. The brief lays out “how President Biden made a predetermined decision for political reasons, not national security, causing CFIUS to engage in a sham review […]
Cliffs blames muted auto demand for steep losses in 2024
Muted demand from the auto industry took a particular toll later in the year.
U.S. Steel losses widen, better times seen as BR2 ramp-up continues
U.S. Steel’s losses widened in the fourth quarter on lower steel prices, weaker demand, and startup costs relating to the expansion of its Big River Steel EAF sheet mill in Arkansas. But the Pittsburgh-based steelmaker said it expected results to improve in 2025 as Big River 2 – the project to double capacity at the Osceola, Ark., mill - gains steam.