From Ilva to Acciaierie d’Italia
Ilva began on Feb. 1, 1905, in Genoa as Società Industria Laminati Piani e Affini (ILVA), and grew into one of Italy’s leading steel producers. Its flagship Taranto steelworks, inaugurated in 1965, became Europe’s largest steel plant. At its 1970s peak, Taranto produced more than 17 million metric tons of steel per year and employed about 40,000 people, roughly 16% of Taranto’s population.
This strong growth period lasted from the mid‑1960s to the mid‑1990s. In 1995, the Riva Group bought ILVA from the Italian government. That deal ended the state‑owned era and started a troubled phase marked by mounting environmental and financial problems.
Environmental and Regulatory Pressures
In 2012, an Italian court ordered Ilva to upgrade its production lines to meet stricter pollution standards. The ruling followed an inquiry into unusually high cancer and respiratory disease rates in the Taranto area.
Authorities allowed the plant to keep running while upgrades moved forward, but Ilva struggled to meet regulatory demands and remain profitable. By 2024, rising energy costs and weak steel demand created deeper financial stress, which led to reduced production and mounting losses.
Insolvency and State-Led Administration
Renamed Acciaierie d’Italia (ADI), the company eventually moved into state-led administration. In February 2024, the Italian state appointed commissioners to take control of ADI. On Feb. 29, 2024, the Milan Bankruptcy Court declared ADI insolvent, citing debt of about US$3.37 billion as of Nov. 30, 2023.
Before this point, ArcelorMittal owned 62% of ADI and Invitalia, a state‑owned investment agency, held 38%. In early January 2024, ArcelorMittal started formal procedures for special administration to reorganize ADI’s debts and obligations.
Government Response and Market Impact
Higher energy prices and falling rolled‑steel coil prices worsened ADI’s financial position. In response, the Italian government introduced measures to limit the damage to local suppliers. These steps included a guarantee fund for small and medium‑sized enterprises affected by ADI’s payment delays.
This latest chapter adds to a long record of financial strain and environmental controversy around the Taranto steelworks. The plant remains central to both the local economy and debates about heavy industry and public health.
Bidding Process and Current Operations
ADI is currently the subject of a formal bidding process. By the Jan. 10, 2025 deadline, the company received 10 offers: three bids for the entire business and seven for specific assets. The leading contenders to acquire the whole company are Baku Steel Company (with Azerbaijan Investment Company), Jindal Steel International, and Bedrock Industries Management Co., Inc..
The Taranto plant, still Europe’s largest integrated steel facility, operates at reduced capacity and employs around 10,000 people. Commissioners have requested a 12‑month extension of temporary layoffs from March 2025 for 3,420 employees, including 2,955 workers directly tied to the Taranto mill.