The situation between ArcelorMittal and the Italian government could end in court

Disputes arose between ArcelorMittal and the Italian government based on the takeover of a steel factory in Taranto, in southern Italy, which came with a series of bureaucratic and legal problems. All this led Mr. Mittal last month to withdraw from the agreement concluded with the Italian government a year ago.

Akshmi Mittal developed her company, ArcelorMittal – the largest steel producer in the world, through a series of takeovers around the world. The most famous being probably the mega-merger in 2006 with Arcelor, then the largest steel producer in Europe.

ArcelorMittal’s main complaint is that the Italian government removed a pre-existing legal shield. Who granted him immunity from prosecution. For the environmental risks while carrying out the cleaning in Taranto.

ArcelorMittal and the Italian government are one step away from a legal battle

Ilva directly employs approximately 8,200 workers in one of the least prosperous areas in Italy.

„The goal … is to reach a new industrial plan, with new production solutions and new ecological technologies that will allow the effort made to clean the environment”, declared the Italian Prime Minister Giuseppe Conte.

His statement came after a meeting in Rome with the executive director Lakshmi Mittal, and with his son, Aditya Mittal. The latter being the financial head of the group and CEO of ArcelorMittal Europe.

„Discussions will continue with the aim of reaching an agreement as soon as possible for a sustainable steel production in Taranto”. This is how an ArcelorMittal press release shows.

The Italian Minister of Economy, Roberto Gualtieri, declared that the meeting created the right conditions for a positive result in Ilva. Also, for an investment plan that combines industrial development and environmental guarantees. Without sounding too optimistic, he considered that it is possible that he will not end up in court. And he manages to solve the Ilva crisis with the relaunch of the company with ArcelorMittal.

Conte also stated that legal immunity was not discussed during the meeting. But it is open for the state to play a direct role in Ilva. Considering its importance for the Italian economy. Rome is ready to adopt measures to support Ilva workers. Conte said, adding that the highest employment level must be maintained.