Italy to seek 5 bln euros in damages from ArcelorMittal over ILVA steelworks

MILAN, Dec 3 (Reuters) - The commissioners of Italy's former ILVA steel plants will launch a 5-billion-euro ($5.83 billion) damages claim against ArcelorMittal, Industry Minister Adolfo Urso said on Wednesday, as the government seeks a new buyer for the steelmaker.

Acciaierie d'Italia (ADI), previously known as ILVA, was placed under government administration in early 2024, ending the ownership of ArcelorMittal, the world's second-largest steelmaker, and with the aim of finding new private investors.

"Extraordinary maintenance is absolutely necessary and stems from the state of total neglect and decay in which the plants were left by ArcelorMittal," Urso told parliament in announcing the damages claim.

ADI, which is struggling to maintain production amid rising energy costs and weak demand, is a major headache for Italian Prime Minister Giorgio Meloni because its closure would have major knock-on effects for the country's manufacturing sector.

In September, the steelmaker said it had received 10 bids for the plant, but that only two of the bidders - Azerbaijan's Baku Steel Company working with Azerbaijan Investment Company, and India's Jindal Steel International - were interested in purchasing all of the company's assets.