The Italian government has taken over a struggling steel mill ArcelorMittal held a majority stake in.Â
Italy placed Acciaierie d’Italia SpA, or ADI, into extraordinary administration, or an equivalent of bankruptcy that may result in it being renationalized.
Luxembourg-based ArcelorMittal, which has its North American headquarters in Schererville and a global research and development center in East Chicago, owned 62% of the steel mill, a majority stake it acquired in 2018. Invitalia, a government agency, owned the remaining 38%.
Italy turned the steel mill over to government-appointed commissioners, ending ArcelorMittal's six-year involvement.
The steelmaker said it made significant investments of more than $2.17 billion in the mill, allowing it to complete an $866 million environmental upgrade. It also said the mill benefits from "hundreds of millions of euros of credit through the provision of raw materials by ArcelorMittal."
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ArcelorMittal said it tried to address the discrepancy in capital investment between it and Invitalia to extend the public-private partnership and then tried to sell its share to Invitalia. The discussions went nowhere.
The steelmaker said extraordinary administration could have been avoided if the mill had been allowed to access traditional debt financing instead of relying solely on it for new injections of capital. It also faulted the Italian government for delivering less than a third of $2.17 billion in support it initially promised when the public-private partnership was launched in 2018.
"An already complicated turnaround was made even more challenging by the instability caused by the temporary removal of criminal immunity applicable during the implementation period of the environmental investment program, the demand environment during the COVID crisis and the energy crisis in Europe last year," ArcelorMittal said in a statement. "For the people and communities of ADI, ArcelorMittal hopes that a future can be secured that will bring much needed stability."
The steelmaker also was recently forced to divest its Kazakhstan operations after the Kostenko mine disaster that killed 46 miners. It had to write down more than $3.8 billion in losses related to the two disinvestments in the fourth quarter.
ArcelorMittal was the largest steelmaker in the world until it was surpassed by China Baowu Steel Group after divesting most of its U.S. operations, including its mills along the lakeshore in Northwest Indiana.
A look back at Northwest Indiana businesses that closed in 2023
A look back at Region businesses that closed in 2023
Beer Geeks, one of the Region's first, most beloved and most influential craft beer bars, closed after more than a decade and is being reimagined as a new concept.
The landmark 88-year-old castle-shaped White Castle in Whiting is coming down to be replaced with a newer, larger, more modern White Castle restaurant.Â
A longtime staple in downtown Crown Point poured its last drink.
The longtime Westforth Sports gun shop is closing.
The Silver Line Building Products plant at 16801 Exchange Ave. will be shuttered permanently.
Brewfest in Highland will close in what's been called "an end of an era."
David's Bridal filed for bankruptcy and could close all stores if no buyer emerges to save it.
The 88-year-old Whiting White Castle will be remembered with displays at museums in two different states.
For years, the "millionaire's club" met every morning in the corner booth of the historic 88-year-old White Castle at Indianapolis Boulevard and 119th Street in downtown Whiting. The landmark restaurant served its final slider Tuesday.Â
One of Northwest Indiana's most popular and enduring hobby shops is looking for a buyer after the longtime owner died.
J&L This N That Consignment Shop, a popular thrift store, closed in downtown Whiting after a run of several years.
A Calumet Region institution, Calumet Fisheries on the far South Side of Chicago, is temporarily closed after failing a city health inspection.
Just days after reopening after city health inspectors shut it down, Calumet Fisheries suffered a major fire.
Pepe's Mexican Restaurant is no mas in Valparaiso.
Beer Geeks in Highland rebranded as B-Side Bar & Lounge and then closed within a few months.
Troubled retailer Bed Bath and Beyond will permanently close its Valparaiso location as it shutters more stores nationwide as it looks to restructure and shrink its footprint to save the struggling business.
Peoples Bank has shuttered its branch in downtown Hammond.Â
Viking Artisan Ales will soon pour its last craft beer at its Merrillville taproom.
Old Chicago Pizza & Taproom is closing after 15 years at one of Northwest Indiana's most prominent highway interchanges.
The Chicago Auto Show, the nation's largest auto show, returns to McCormick Place Saturday, running through Feb. 19.
