Italy receives six expressions of interest for Ilva steelworks, government tells unions
Ilva steelworks are vital for underdeveloped southern Italy
India's Vulcan Green Steel, Ukraine's Metinvest among bidders
Italy took control of Ilva after clashes with ArcelorMittal
By Giuseppe Fonte
ROME, July 24 (Reuters) -Six international and domestic players have expressed interest in taking over the steelworks of Acciaierie d'Italia (ADI) which was formerly known as Ilva, the government told trade unions during a meeting on Wednesday.
They are India's Vulcan Green Steel and Steel Mont, Ukraine's Metinvest, Canada's Stelco and Italian steel firms Arvedi and Marcegaglia, government officials told Reuters.
The fate of ADI is a major headache for Italian Prime Minister Giorgia Meloni, as its closure would have serious knock-on effects for the country's manufacturing sector.
ADI's main plant in the city of Taranto is one of the largest in Europe and a major employer in Italy's under-developed south.
Addressing unions, Industry Minister Adolfo Urso said six players would be interested in taking part in the tender process that Rome was expected to launch by the end of this month, according to the officials, who attended the meeting.
The government took charge of the group's factories in Italy this year under a special administration procedure, ending weeks of clashes with its then top shareholder ArcelorMittal MT.LU, the world's second-largest steelmaker.
As energy costs rose and rolled steel coil prices fell, ADI ran out of cash and accumulated huge debts with suppliers including energy group Eni ENI.MI and grid operator Snam SRG.MI, prompting the government to offer financial aid and a temporary layoff scheme to keep staff at home.
Canada's Innovation Minister Francois-Philippe Champagne championed Stelco's bid in a telephone conversation with Urso on Tuesday, the Italian ministry said in a statement.
Metinvest, Ukraine's largest steelmaker, is looking for production sites abroad to offset significant asset losses at home, including the vast Azovstal steel plant in Mariupol that was destroyed during a prolonged Russian siege.
Vulcan Green Steel is part of Jindal Steel Group, which has already signed off on a preliminary agreement with the Italian government to relaunch the Piombino steelmaking site in Tuscany.
Reporting by Giuseppe Fonte; Editing by Kirsten Donovan
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