ArcelorMittal backs out of Italy's Ilva acquisition

0 Comment(s)Print E-mail Xinhua, November 6, 2019
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ROME, Nov. 5 (Xinhua) -- Multinational steel giant ArcelorMittal on Tuesday formally began the process of withdrawing from its year-old plan to turn around beleaguered Italian steelmaker Ilva, putting the fate of at least 8,000 workers in doubt.

The marriage between ArcelorMittal, the world's largest steel producer, and Ilva was launched with high hopes in 2018. Ilva has struggled for years amid severe pollution and health issues as well as tough trade union negotiations, and ArcelorMittal promised to spend billions to modernize and clean up the troubled plant.

But the ArcelorMittal deal collapsed after the Italian government canceled a guarantee for immunity from prosecution related to the plant's pollution problems.

Things moved quickly. Italian parliament removed the immunity clause of the contract on Sunday according to media reports, ArcelorMittal said it could not remain involved on Monday, and the withdrawal began Tuesday.

The immunity agreement was opposed by some government officials on the grounds that it would be unfair to residents in the nearby city of Taranto who would be prohibited from seeking damages against the plant's owners for health issues they might suffer as a result of the pollution Ilva emits.

But the move creates a new problem. If the plant closes, it will put at least 8,000 workers out of a job in one of the most economically depressed parts of Italy.

For now, Ilva will return to state control. The plan had been operated by state-selected officials from 2015 until the deal with ArcelorMittal was struck last year. Enditem

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