Flacks updates the plans of the former Ilva by proposing a new steel plant in Taranto

The Faces Group has renewed its bid for the future of Acciaierie d'Italia, presenting an updated plan based on the creation of Flacksider, a new company in which the US investment group is seeking the participation of the Italian state and two industrial partners.

According to local sources, the proposal aims to preserve operations at the Taranto site during the transition period, while gradually replacing the existing production route with enterprises based on direct iron reduction technology and electric arc furnaces. The project also includes the restoration of the industrial zone's environment and the continuation of processing operations using semi-finished products from external sources.

After full operation, the new configuration is expected to reach a production capacity of about 4 million metric tons of low-emission steel per year. The transition will take place gradually, with blast furnaces currently operating being gradually decommissioned.

Key details still to be clarified

Earlier, Flacks named the Italian Danieli plant and the Ukrainian steel manufacturer Metinvest among the potential industrial partners involved in the project. According to available information, Danieli confirmed his participation, while Metinvest did not make any official statement.

Some elements of the proposal have yet to be clarified, including the final ownership structure, the extent of any government involvement, the necessary financing, and the investment schedule.

The American group claims that the plan will limit the impact of the transition on employment by gradually returning direct employees to production and supporting the re-establishment of contractors and other companies in the local supply chain. According to Flacks, any reduction in the workforce will be limited to the initial transition period and will be lifted as soon as new businesses start operating.

Flacks positions his plan against Jindal's proposal

This proposal is presented as an alternative to the project attributed to Jindal Steel International. Flacks argues that a competing option would reduce primary steel production in Taranto and turn the plant into a rolling hub supplied with semi-finished products from abroad.

According to local sources, the Italian government and emergency commissioners are continuing negotiations with Jindal regarding the possible exploitation of Acciaierie d'Italia assets. It is assumed that the Indian group's plan involves a wider use of imported slabs, potentially produced at a future enterprise.