Jindal and Arvedi have submitted binding bids for the former Ilva steel plant

Italian steel company Acciaierie d’Italia (ADI) has shut down the hot area at its steel plant in Taranto, Energia Oltre reports.

Procedures to shut down the blast furnaces began in early November, following a decision by Italy’s Court of Cassation, which rejected appeals filed by Ilva and Acciaierie d’Italia.

A further blow came with the decision to cancel decarbonization funding directly affecting the company.

€1 billion was initially earmarked for the construction of a direct reduced iron plant to serve the former Ilva plant, and later for general decarbonization measures in the steel industry (specifically, at the Taranto facility).

In June 2026, the government transferred the funds from the budget of the Ministry of Environment and Energy Security to the budget of the Ministry of Enterprises and Made in Italy, citing a lack of resources. At the same time, the requirement to use them for the DRI plant in Taranto and DRI d’Italia was dropped, and the funds were instead redirected to general support for the steel industry’s green transition. Ultimately, the draft budget law for 2027-2029 canceled the allocation of €720.6 million planned for 2027-2030. These public funds were intended for environmental upgrades and EAF construction in Taranto.

Meanwhile, as Argus Media notes, following the court rulings ADI has shifted its focus to providing rolling services at its Taranto plant. As the plant’s own steelmaking and slab production capabilities are limited, the company has to rely on imported semi-finished products. This prompted it to offer spare rolling capacity to third-party customers in the second half of the year.

However, according to market participants, the tolling fee quoted by the company (€160–170/t) is economically unjustified under current conditions, except perhaps for the largest buyers, who could benefit from purchasing large volumes of slabs or from better individual contract terms.

According to sources, plate production lines did not feature in the discussions on tolling services.

On November 9, binding bids for the former Ilva steel plant were submitted by India’s Jindal and Italy’s Arvedi Group, Reuters reports, citing the extraordinary commissioners. The bids will be assessed for compliance with the tender terms.

As a reminder, Acciaierie d’Italia ended the first half of 2026 with a staggering loss of €551.5 million. Its debt to suppliers reached €1.75 billion, and its total debt amounted to €8.5 billion.