What would be the impact of the decision of Arcelormittal on Italy Ilva plant as we heard that they want to terminate the Ilva International acquisition after Italy’s Parliament decided to cancel the company’s legal immunity related to a planned #environmental cleanup.” Below is the reference.
Well, I do not think the show will last for long. ArcelorMittal is in a position to negotiate the terms. It is also seeking the opportunity for the company to cut the workforce as the market is not doing well.
The local media reports say that the plant currently produces 4 million tonnes annually, which is too low for the company to remain sustainable. It has more than 8,000 employees, and Prime Minister Giuseppe Conte alleged that ArcelorMittal plans to cut the workforce by as many as 5,000.
No implications for prices as much as I can see even in case of a legal showdown, the plant will likely to continue under extraordinary administration.
The Italian government will be in an awkward position if a legal battle starts, as it will lose more than ArcelorMittal gains.
ArcelorMittal blamed that the government is scrapping its previous guarantees of legal immunity for a clean-up operation at the plant. However, the government insists that restoring the previous provision would not resolve ArcelorMittal’s cost-efficiency problem.