Flacks Group recommended for exclusive talks on Italy’s former Ilva steelworks

The committee overseeing the sale process for Italy’s former Ilva steelworks has recommended entering exclusive negotiations with Flacks Group, according to people familiar with the matter. The decision would move the US-based turnaround specialist to the front of the process for Acciaierie d’Italia, the company operating the Taranto site.

The recommendation is understood to reflect Flacks Group’s commitment to invest in the plant, safeguard employment and raise production levels. By contrast, rival bidder Bedrock Industries has reportedly proposed scaling back operations at the southern Italian facility.

Italy’s Ministry of Industry declined to comment ahead of a formal announcement.

If confirmed, the move would mark a significant step in efforts to stabilise the Taranto steelworks, which has challenged successive Italian governments for more than a decade. The site is a major employer in southern Italy but was placed under administration in 2013 following an environmental investigation and has since required billions of euros in public support. Italian daily Il Sole 24 Ore previously reported on the committee’s recommendation.

Michael Flacks, founder of the Miami-based private-equity firm, has offered a symbolic €1 for the business, pledging to revive operations and create jobs. “We want to grow it,” Flacks told Bloomberg News in December.

Steel output at Taranto has fallen by around 80% from peak levels in the 2000s, with most of the plant’s roughly 8,000 employees currently on furlough. While the committee is leading negotiations, the final decision on the future of the steelworks rests with the Italian government. Other bidders in the process have included Baku Steel and Jindal Steel.

Source: Flacks Group, Photo: Ilva