The Italian government has stepped up its legal fight with ArcelorMittal, seeking €7 billion ($8.17 billion) in damages over the running of the country’s largest steel plant, formerly known as ILVA, as it looks for new owners to stabilise the ailing business.
State-appointed administrators of Acciaierie d’Italia (ADI), which took over the steelworks in early 2024, have filed a lawsuit in a Milan court accusing the world’s biggest steelmaker of mismanaging the company during its period of ownership.
The claim marks a sharp escalation in a long-running dispute over the future of the sprawling steel complex, which is seen as strategically vital for Italy’s manufacturing sector.
Prime Minister Giorgia Meloni’s Government has warned that shutting the plant would send shockwaves through supply chains, from automotive to construction.
According to the complaint, forensic due diligence carried out by the commissioners found that ADI’s financial problems were not accidental but stemmed from decisions taken under ArcelorMittal’s control.
The administrators allege funds were systematically siphoned away from the Italian business to its parent company, leaving the steelmaker weakened and cash-strapped.
Italy’s industry minister, Adolfo Urso, had previously flagged that legal action was coming, saying in December that damages of up to €5 billion were being prepared.
The final claim is larger, reflecting what administrators say is the scale of the harm caused.
ArcelorMittal did not immediately respond to requests for comment, nor did Italy’s economy ministry.
The lawsuit coincides with plans by the government to sell ADI to new investors.
While ArcelorMittal said there were 10 bids for the business last September, only two - a consortium involving Azerbaijan’s Baku Steel Company and the Azerbaijan Investment Company, and India’s Jindal Steel International – have expressed interest in buying all the assets.
Meanwhile the steelmakers' operation remains under pressure.
Production has been hit by high energy prices and weak demand, which only adding urgency to Rome’s search for a buyer willing to commit fresh capital and keep the plant running.
The legal clash in Italy also coincides with a difficult period for ArcelorMittal elsewhere in Europe.
In Belgium, the group is consulting with trade unions over the possible permanent closure of its Tailored Blanks division in Ghent, which supplies customised steel components to the automotive industry.
Around 90 jobs are at risk, according to unions, after years of losses driven by a downturn in car production.
It is understood that ArcelorMittal Belgium has yet to move ahead with a flagship €2 billion green investment at its Ghent site, which would replace traditional blast furnaces with lower-emission direct reduced iron technology and electric arc furnaces.
The project, announced in 2021, has been delayed amid uncertainty over costs and market conditions.
For Italy, however, the focus is firmly on holding ArcelorMittal to account for its previous stewardship of ILVA, even as officials try to secure a sustainable future for the plant.
As the complaint puts it, the investigation found that the company’s financial imbalances were “the result of a wilful and precise strategy, pursued over time, aimed at systematically and unilaterally transferring financial resources from the company to its parent company.”
