«With the 750 million, the development of green state steel starts»- Corriere.it

A 2022 to forget, due to energy price increases. But a 2023 that could prove to be the turning point for Acciaierie d’Italia, the former Ilva that the government has decided to support with a loan of 680 million, to which are added 70 from ArcelorMittal as provided for in the agreements just renewed by the shareholders public and private. A loan that will give oxygen to the company cornered by the shortage of working capital and debts to Eni and Snam, waiting for the completion of the environmental plan to allow the judiciary to release the plants from seizure. Bringing Europe’s largest steel mill back to normal production conditions. “By returning to financing working capital with market instruments, as all companies in the world do – explains the president Franco Bernabè – without being forced to pay for supplies in cash, obviously going into difficulty”.

But will the 750 million, 680 from the public shareholder Invitalia and 70 from private individuals, be enough? And until when?
«A clarification should be made on the financial situation: Acciaierie d’Italia has no financial debts but debts towards suppliers balanced by credits towards customers and the raw materials are paid in cash. A balance that held up until energy prices exploded in 2022, greatly expanding costs for the company. Also because AdI is the largest energy consumer in Italy, using almost 2% of Italy’s total energy needs».

How much have energy costs increased in 2022?
«The gas bill alone has gone from 10-20 million a month to 100 million with peaks of 150. An unsustainable situation even for a company that in 2021 achieved revenues of 3.4 billion. Fortunately, from the point of view of electricity we are independent with our two plants. What’s more, the government, both the previous and the current one, has supported the energy-intensive sectors with the tax credits that have just been extended for the next three months by the Meloni government. Without these measures in Italy there would have been desertification of the industrial sector”.

So will the 750 million be used to pay the bills only?
«Not only that, evidently, but the payment of debts to energy suppliers is fundamental. During 2023 the situation will normalize if the plants are released from seizure. A situation that today deprives us of the bankability requirement. Do you know what this means?’

Who cannot ask for loans from banks.
«Exactly: Acciaierie d’Italia cannot finance working capital as all companies in the world do and must pay for supplies in cash. And so, at the time of the order, he can support the purchase of raw materials only if he has the cash available».

The release from seizure can only come when the environmental plan is completed. When it will be possible?
«The environmental plan will be completed in mid-2023. At that point it will be up to the commissioners to apply to the court for the release from seizure which, if granted, will solve most of the problems of the former Ilva: it will be able to finance itself on the market and return to producing more steel, it will be able attract investors, it will once again be the largest steel company in Europe».

Prime Minister Giorgia Meloni also called for an increase in production with a consequent drop in layoffs which today affect 3,000 people. By how much will it increase after the 3 million tons of steel in 2022 against the 4.4 in 2021?
“It depends on market conditions and access to financial resources. But obviously the company’s goal is to increase production compatibly with economic and environmental constraints».

As for financial resources, should the capital increase to bring Invitalia to 60% be done immediately? Is there no longer the constraint of the release from seizure of the plants for the passage of the public shareholder Invitalia in the majority?
«The rule passed by the government allows funds to be disbursed even without the release from seizure of the plants, even with a capital increase. This is one of the novelties of the measure. The other is that it gives great flexibility to the public shareholder who can intervene as and when he deems most appropriate. At this point, believe me, the problem is no longer resources: there are enough for the industrial plan».

Before talking about the industrial plan, there is another novelty of the regulation passed by the government which has aroused disagreements from many quarters, above all from environmentalist associations: the so-called penal protections. Can you explain to us what they consist of and what do you answer to those who say that in this way the work of the judiciary is blocked?
«It is neither a shield nor special protections. But only the reaffirmation of an obvious principle, that criminal responsibility is personal and therefore cannot exist for crimes committed by others if someone faithfully applies the law. It’s common sense.”

Let’s go back to the business plan. Why isn’t it a resource issue?
“Lire 2.750 billion is available for the Taranto reconversion plan: the 750 million in shareholder financing to which are added the billion from the Aiuti bis Decree and the one envisaged in the Pnrr, destined for Invitalia to develop the Dri company, the pre-reduced iron. All resources from which Taranto, Genoa and Novi will benefit, but above all Taranto which has an industrial culture that must be preserved and made to grow according to the development of green technology with hydrogen and renewables. The money for the conversion of Taranto is there and anything that causes delay creates considerable damage».

What does the industrial plan foresee?
«Italy cannot do without the production of primary steel and the only producer of mineral steel is Taranto. The State has for some time been posing this problem of how to evolve from blast furnace production to production with alternative technologies and the choice made was to use Dri, the pre-reduced iron. The State has also concretely launched the conversion plan, created the company for the Dri which has been at work for a year, is in the technological assessment phase to arrive at the industrial investment decision by June 2023. It will take 10 years and more than 5 billion in investments to complete the plan because it is an epochal plan, like that of the creation of Finsider at the time, because it will involve transforming the largest steel mill in Europe into a green plant. But the plan is already in place.”

And because Acciaierie d’Italia finds itself between two fires, both that of those who should want more work, such as the trade unions, and that of those who are more concerned with environmental aspects, such as local authorities, from the president of the Puglia Region Michele Emiliano to the mayor by Taranto Rinaldo Melucci?
«I believe that everyone cares about development, employment and health. There is no difference between the company, trade unions and administrations on the final objectives to be achieved. I remember that the great transformation of the chemical industry, which I managed from CEO of ENI, posed more important problems because there were so many industrial poles involved. Yet it was done in full agreement with the unions and local administrations. Why shouldn’t we also succeed in Taranto? We need to get around the table and find an agreement: we will be there for the one convened for January 19 by the Minister of Enterprise and Made in Italy Adolfo Urso. Together the solution can be found. Unless you really want to shut down the plant. But this, let it be clear, is not the intention of the state”.

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