2 days ago
Italy injects more money into struggling former Ilva steelworks
ROME, June 12 (Reuters) - The Italian government on Thursday earmarked 200 million euros ($232 million) to keep afloat the steel company Acciaierie d'Italia (ADI), formerly known as Ilva, while negotiations to sell it are ongoing, the industry minister said.
In March, the government announced it had entered exclusive talks with an Azeri consortium about the sale of ADI, which was placed under state administration last year after struggling to maintain production amid rising energy costs and weak demand.
The fresh liquidity injection was announced following a meeting this week between ministers and unions in Rome, during which the government made clear it would ensure "financial support for the continuation of the company's activities."
A source told Reuters that the consortium interested in taking over ADI includes Baku Steel and the Azerbaijan Business Development Fund.
Successive Italian governments have had to deal with the ailing steelworks and provide funding to keep it operational, as its closure would have major knock-on effects for the country's manufacturing sector.
($1 = 0.8628 euros)
