Azerbaijani consortium named best bidder for Italian steel plant

The offer of the consortium of Azerbaijani companies Baku Steel Co. CJSC (BSC) and Azerbaijan Investment Company OJSC (AIC) to purchase the Italian steel producer Acciaierie d'Italia SpA has been recognized as the best of three bids, also made by the Indian Jindal Steel and the American holding company Bedrock Industries, Report informs referring to Acciaierie d'Italia SpA.

"The Extraordinary Commissioners of Acciaierie d'Italia in AS and ILVA in AS have sent the Ministry of Business and Made in Italy a request for authorization to start preferential negotiations with the Azerbaijani consortium led by Baku Steel Company CJSC and Azerbaijan Investment Company OJSC.

The decision was made after a careful and in-depth analysis of the relaunch offers received.

The selection process assessed several factors, including the financial solidity of the candidates, the industrial sustainability of the respective proposals and the benefits in terms of employment and for local communities.

In compliance with the complexity of the negotiation for the future of the steel hub, the negotiation process will be carried out with the necessary confidentiality, ensuring the protection of the industrial, employment and social interests involved," reads the statement.

Ten bids were submitted by the deadline for the tender to purchase Acciaierie d'Italia SpA, which expired on January 10, 2025. Of these, only three concern the acquisition of all business complexes of the company: the proposals of the consortium of Baku Steel Company and AIC, the American Bedrock Industries Management Co Inc and the Indian Jindal Steel International.

The Italian plant, once one of the largest in Europe, has been experiencing problems for many years. The company, formerly known as Ilva, is currently under state control, and the plant in Taranto is operating at reduced capacity. The plant produces about 2 million tons of steel per year. The Italian government is looking for an investor who will be able to restore production to a level as close as possible to the peak capacity of the plant - 10 million tons per year.

Acciaierie d'Italia SpA (formerly Ilva S.p.A.) is an Italian company headquartered in Taranto, one of the largest steel producers in Italy and Europe. Its structure includes subsidiaries Acciaierie d'Italia, AdI Energia, AdI Servizi Marittimi, AdI Tubiforma and AdI Socova. Baku Steel Company is the first and largest modern metallurgical enterprise in the Caucasus. Its annual capacity is 800,000 tons of steel.

The main priorities of AIC are: sustainable development of the non-oil sector, attracting foreign investment, creating new enterprises based on modern standards and best practices. Over the past five years, in addition to creating 19 new enterprises, AIC has implemented 23 projects in various fields, including food production, construction, pharmaceuticals, packaging, mining and green energy for a total of 1.7 billion manats ($999 million).