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Source: AFP
A twelvemonth aft ousting ArcelorMittal, Italy is preparing to manus implicit power of its elephantine ex-Ilva steelworks to Azerbaijan's Baku Steel, the industry curate said Thursday.
Adolfo Urso said Baku Steel was deemed to person made the "best offer" retired of 3 bidders for the works successful the confederate metropolis of Taranto, 1 of Europe's largest steelworks, which has struggled for years.
The connection by Baku Steel, backed by the state-owned Azerbaijan Investment Company, was up against those from India's Jindal Steel and US holding institution Bedrock Industries.
State commissioners volition connected Thursday "send a ceremonial petition to beryllium authorised to negociate with the planetary entity that has made the champion proposal, which volition astir apt beryllium that of the Azerbaijani team", Urso said.
"Thus opens a caller and decisive signifier of negotiations," helium added.
The magnitude of the connection from Baku Steel has not been disclosed.
Prime Minister Giorgia Meloni's authorities placed the works nether authorities medication successful February 2024 successful a bid to support its thousands of employees aft it was declared insolvent by a Milan court.
Rome, which astatine the clip had a 38 percent stake, had accused ArcelorMittal -- which had held the different 62 percent -- of refusing to inject caller funds.
The steelworks, which dates from the 1960s, has been dogged by ineligible and governmental battles since 2012 implicit its emissions, and its accumulation has been declining.
ArcelorMittal paid 1.8 cardinal euros ($2 billion) for it successful 2017, promising to put 2.4 cardinal euros and safeguard jobs astatine the plant, which has 8,100 employees successful Taranto.
But erstwhile the Italian authorities intervened, it had debts of much than 3 cardinal euros and was incapable to wage astir of its suppliers oregon its inferior bills.
Industry successful situation
The alteration successful enactment comes astatine a important clip for the steelworks, arsenic the 25 percent tariffs imposed by US President Donald Trump connected alloy imports into the United States endanger to cripple a assemblage already successful crisis.
Against a backdrop of rising energy prices and declining request for steel, little than 3 cardinal tonnes of alloy were produced successful 2023 successful Taranto and hardly 2 cardinal tonnes successful 2024.
Only 2 of the 4 blast furnaces are presently successful operation.
Baku Steel presently operates a alloy works successful Baku, the superior of Azerbaijan, with a accumulation capableness of 800,000 tonnes per year.
It has committed to bringing a floating regasification portion to the larboard of Taranto, which was apt a deciding origin successful its palmy bid, contempt biology concerns.
Azerbaijan has go Italy's second-largest state supplier aft Algeria, pursuing Rome's efforts to trim its dependence connected Russia aft the penetration of Ukraine.
Minority authorities involvement
Three candidates bid successful January to instrumentality implicit the full steelworks, portion 7 different offers related to the acquisition of definite assets.
Opposition parties criticised Meloni's hard-right authorities arsenic soon arsenic Baku Steel emerged arsenic the favourite successful aboriginal February.
"The authorities of patriots has decided to necktie itself manus and ft astatine a strategical level to a state, Azerbaijan, which is profoundly influenced by Russia," said Mario Turco, vice-president of the Five Star Movement.
Russia and Azerbaijan person been historically adjacent but relations person soured since an Azerbaijan Airlines level crashed successful Kazakhstan successful December, sidesplitting 38 people. Baku says it was changeable astatine by Russian aerial defences.
Industry curate Urso indicated successful aboriginal March that the Italian authorities could clasp a number involvement successful the steelworks.
Such information "would let america to amended warrant the concern development" of the plant, "avoiding the mistakes of the past", helium said.
The purchaser volition person to adhere to strict specifications, including "the implicit decarbonisation of the Taranto steelworks", maintaining employment levels and making "the indispensable technological and fiscal investments", Urso said then.
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Source: AFP
