Jindal, Arvedi bid for former Ilva steelworks

India’s Jindal and Italian steelmaker Arvedi Group have submitted binding bids for Italy’s largest steelworks, the special commissioners overseeing the company said on Monday, as the government seeks a buyer for the industrial group.

The commissioners will now assess whether the offers are complete and meet the tender requirements, according to a statement.

The business of Italy’s steel group Ilva, now Acciaierie d’Italia (AdI), centred on the vast Taranto plant in southern Italy, is currently run by government-appointed commissioners after years of financial and operational difficulties.

Prime Minister Giorgia Meloni’s government has been seeking a new owner to safeguard steel production and thousands of jobs at the site, which directly employs around 8,000 people. The Taranto site is Italy’s only integrated steelworks and is considered a key part of its manufacturing base.

A Supreme Court ruling last month ordering the shutdown of blast furnaces at the site on health and environmental grounds has complicated the sales process.

AdI also operates plants in the northern regions of Liguria and Piedmont, employing around another 1,500 people.

Arvedi’s bid envisages building a first electric arc furnace within two to three years, followed by a second, a person close to the matter said. Subject to local approval, the plan also includes a direct reduced iron plant using Arvedi’s proprietary technology It would allow steel to be produced from raw material within a 180-m (200 yards) production line, sharply reducing CO2 emissions compared with the previous process, according to that person.

Italy’s main metalworkers’ unions Fim, Fiom and Uilm said Arvedi’s offer was an important development but that it was too early to assess both bids impact on the group’s industrial strategy, production and jobs.

The unions urged the government to hold talks with them as soon as possible and disclose details of the offers, including planned investments, production plans for individual plants and employment guarantees. They also reiterated their demand for the state to retain a direct stake in the steelmaker.

Last week, Michael Flacks, chairman of US-based turnaround investor Flacks Group, told Reuters he would not bid for the Taranto steelworks without a government commitment of at least €1 billion ($1.1 billion) in financial support.

(Reporting by Giselda Vagnoni, editing by Giulia Segreti and Tomasz Janowski)