ArcelorMittal and Marcegaglia submit offer for Ilva

ArcelorMittal S.A. / ArcelorMittal and Marcegaglia submit offer for Ilva . Processed and transmitted by Nasdaq Corporate Solutions. The issuer is solely responsible for the content of this announcement.

6 March 2017

• Investment commitments of over €2.3 billion in addition to the purchase price
• Intention to produce 9.5 million tonnes of finished products
• Commitment to build research and development centre in Taranto
• Commitment to implement new low-carbon steel-making technologies
• Letter of intent to join consortium signed with Banca Intesa SanPaolo

ArcelorMittal and Marcegaglia announce they have today submitted an offer for Ilva, the Italian steel-making company. 

Highlights of the offer are as follows:

Intention to produce 9.5 million tonnes of finished products

• Increase production from current levels to 6 million tonnes a year by 2018 from three blast furnaces currently in operation, in compliance with the AIA
• Maximise finishing capacity by bringing up to 4 million tonnes of slabs and hot rolled coil (HRC) to Ilva
• Intention to increase primary production to 8 million tonnes plus over the longer term, supplemented by 2 million tonnes of additional slabs and HRC
• Utilise new low-carbon technologies including carbon capture and utilisation, and low-impact steelmaking

Investment commitments of more than €2.3 billion in addition to the purchase price

• Environmental capex of more than €1.1 billion, including remediation capex, to reach optimal environmental performance in key areas including air emissions and water treatment
• Industrial capex of more than €1.2 billion, including catch-up capex for delayed maintenance and major capex program for blast furnaces and steel plants, including reline of blast furnace 5
• Supported by significant available credit lines of more than €5 billion

Expand product range with targeted investment in high quality products