Italy seeks over $8 billion in damages from steelmaker — report

The state-appointed administrators of Acciaierie d’Italia's steel plants are seeking 7 billion euros ($8.17 billion) in damages from its former owner ArcelorMittal MT.LU, the Financial Times reported on Monday.

As the government seeks a new buyer for the steelmaker, Acciaierie d'Italia (ADI), formerly known as ILVA, has sued over alleged mismanagement of the steelworks, the report said, citing a complaint filed with a Milan court this month.

Italy's Industry Minister Adolfo Urso in December said that the commissioners of the plant would launch a 5-billion-euro damages claim against ArcelorMittal. The government took over administration of the plant in early 2024.

"The forensic due diligence carried out by the commissioners has shown that the company's financial imbalances are the result of a wilful and precise strategy, pursued over time, aimed at systematically and unilaterally transferring financial resources from the company to its parent company," the complaint, quoted by the FT, said.

ArcelorMittal and Italy's economy ministry did not immediately respond to a Reuters request for comment.

In September last year, the steelmaker said it had received 10 bids for the plant, but that only two of the bidders - Azerbaijan's Baku Steel Company working with Azerbaijan Investment Company, and India's Jindal Steel International - were interested in purchasing all of the company's assets.

ADI, which is struggling to maintain production amid rising energy costs and weak demand, is a major headache for Italian Prime Minister Giorgia Meloni because its closure would have major knock-on effects for the country's manufacturing sector.

($1 = 0.8569 euros)

-Kanjyik Ghosh/Reuters