The acquisition of the Italian steel company Acciaierie d'Italia SpA (formerly Ilva) by a consortium of Baku Steel Company CJSC (BSC) and the Azerbaijan Investment Company OJSC (AIC) could be a significant step toward enhancing cooperation between Azerbaijan and Italy, the Italian Ambassador to Azerbaijan, Luca Di Gianfrancesco, said in an interview with the Italian publication Agenzia Nova, according to Report.
"Regarding Acciaierie d'Italia (ADI), government-appointed commissioners recently began exclusive negotiations with the BSC and AIC consortium for the sale of the company. This could be an excellent opportunity to deepen our partnership, as it represents Azerbaijan's largest investment in Italy and in Europe," the diplomat noted.
He added that the deal is of strategic importance not only for Azerbaijan, as it supports diversification of the economy beyond oil sectors, but also for Italy in terms of developing its industrial ecosystem.
"It is worth emphasizing that the Azerbaijani consortium's proposal was the most attractive among more than ten submitted bids. In my opinion, this alone demonstrates the seriousness of both sides' intentions and their desire to strengthen strategic ties," the ambassador added.
It was previously reported that by the deadline for submitting applications to purchase Acciaierie d'Italia SpA — January 10, 2025 — ten bids had been received. Applicants included consortia such as CAR Segnaletica Stradale Srl, Monge & C. SpA, Trans Isole Srl, Eusider SpA; the consortium of Eusider SpA, Marcegaglia Steel SpA and Profilmec SpA; I.M.C SpA; Marcegaglia Steel SpA; the consortium of Marcegaglia Steel SpA and Sideralba SpA, and Vitali SpA.
Only three bids involved the purchase of all the company's production assets: those from the BSC and AIC consortium, the US-based Bedrock Industries Management Co Inc, and India's Jindal Steel International. In late March, the Azerbaijani consortium's offer was declared the best.
Acciaierie d'Italia SpA—formerly known as Ilva—is one of the largest steel producers in Europe. The plant in Taranto, currently state-run, has been operating below capacity in recent years, producing around 2 million tons of steel annually. Italian authorities hope to find an investor capable of restoring output to previous levels—up to 10 million tons per year.