Michael Flacks, chairman of US-based industrial turnaround investor Flacks Group, said he was ready to take over Italy’s troubled former Ilva steelworks but wanted the government to commit at least €1 billion ($1.1 billion) in financial support.
“Nobody can buy Ilva without state help,” Flacks told Reuters, saying he had asked the government for a loan of at least €1 billion, rather than a grant.
“The problem is that the government cannot make a decision,” the British businessman said. “I was the best option and they know I’m the best option.”
Prime Minister Giorgia Meloni’s government is trying to rescue Italy’s largest steelworks, which is under state-appointed administration after years of weak production, financial losses and environmental problems.
A Supreme Court ruling last week further complicated the process, ordering the shutdown of the blast furnaces operated by Acciaierie d’Italia, formerly known as Ilva, in the southern city of Taranto.
The government has extended the deadline for binding offers to November 9 to give potential investors more time to assess the legal and industrial implications of the ruling.
India’s Jindal has previously expressed interest in bidding, while a consortium of Italian steelmakers coordinated by industry body Federacciai has expressed interest mainly in selected assets.
“I’m ready to save Ilva,” Flacks said, adding that he would be willing to meet Meloni.
Potential for Taranto revival
Flacks said he had become frustrated by the bidding process and would not submit further paperwork without a clear signal from Rome.
“I won’t present any bid because I’m tired. I have wasted a lot of time and nobody in the government wants to give an answer,” he said.
A government source said the government could not make commitments or give assurances to individual bidders while the tender was ongoing. Assessing the offers was the job of the commissioners overseeing the business and the process had to comply fully with the tender rules, the person added.
The plant in Taranto employs around 8,000 workers directly and is regarded as strategically important for Italy’s manufacturing sector, supplying steel to customers in industries ranging from construction to automotive production.
Flacks said he saw significant potential in the Taranto site and believed it could eventually produce around 4 million metric tons of steel a year from around 2 million tons in 2025.
He said the project could extend beyond steelmaking, citing opportunities to develop Taranto’s port for cargo, cruise ships and fuel-related activities.
“You don’t need to kill it,” Flacks said. “There are so many opportunities.”
Flacks said his group, which oversees businesses with more than $7 billion in global assets, had the financial and industrial expertise to turn around the steelworks.
“I’m excited about it,” he said. “But this government doesn’t see what I see.”
($1 = 0.8905 euros)
(Reporting by Giselda VagnoniEditing by Keith Weir)
