Italy says Baku Steel submits 'best offer' for ex-Ilva plant

Azerbaijan's Baku Steel has made the "best offer" for Italy's debt-ridden ex-Ilva plant, which was placed under state control last year, the Italian industry minister said Thursday.

Baku Steel was one of three companies that submitted bids for the plant in the southern city of Taranto, formerly majority controlled by ArcelorMittal.

The offer amount from Baku Steel has not been disclosed.

State commissioners will on Thursday "send a formal request to be authorised to negotiate with the international entity that has made the best proposal, which will most likely be that of the Azerbaijani team," Industry Minister Adolfo Urso said.

Baku Steel, owned by the state-owned Azerbaijan Investment Company, had been up against India's Jindal Steel and US holding company Bedrock Industries in bidding for the plant, which is officially owned by the Acciaierie d'Italia (ADI).

Italy's government had accused ArcelorMittal -- which had held a 62 percent stake -- of failing to prop up the struggling plant since taking control of it in 2018.

ArcelorMittal had paid 1.8 billion euros in 2017, promising to invest 2.4 billion euros and safeguard jobs at the plant, which has 8,100 employees in Taranto.

But when the Italian government intervened in February 2024, it was on the edge of bankrupcy, over three billion euros in debt, and unable to pay most of its suppliers or its utility bills.

Baku Steel currently operates a steel plant in Azerbaijan's capital Baku with a production capacity of 800,000 tonnes per year.