World number-one steelmaker ArcelorMittal confirmed that it has submitted a bid to acquire Italian integrated steel company Ilva in partnership with Marcegaglia, the country’s major re-roller.

The company specified that it intends to run at least three blast furnaces at Ilva Taranto and increase crude steel production from the current 4.8 million mt/year to 6 million mt/year by 2020.

It also added that the focus would be to increase the value added production at the mill and stated that Ilva would significantly benefit from the economies of scale of being part of a large group such as ArcelorMittal.

“In ArcelorMittal, Ilva will find an experienced and committed partner ready to transfer its financial support, management know-how, operational expertise and product technology," remarked Geert Van Poelvoorde, CEO of ArcelorMittal Europe Flat Products said.

"We have carried out extensive due diligence and are satisfied that with targeted investments and a robust plan the plant can be successfully turned around," he stated.

In relation to the environmental issues at Ilva, ArcelorMittal said it has prepared a detailed investment plan to bring the environmental performance into line with European standards; it added that the company has nevertheless requested some changes to the limits set by the Italian authorities on some environmental issues.

The partnership created by ArcelorMittal and Marcegaglia appears to be strong, one being the largest steelmaker in the world and the other the leader in Italy and a strong player in Europe in the downstream steel markets.

As previously reported, the other main contender in this bidding will be a new joint venture created by the Italian EAF-based steelmaker Arvedi with the support of local Italian investors. Arvedi plans to invest in developing a DRI-based steelmaking at Ilva to cut emissions and tackle the environmental issues.-TradeArabia News Service