Ex Ilva, ArcelorMittal: also with penal shield impossible to execute contract

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"In any case, even if the legal protection were restored, it would not be possible to execute the contract" as there is the possibility that, due to a provision of the judicial authority of Taranto, the blast furnace 2 will be turned off again and "in in this case the blast furnaces 1 and 4 should also be switched off because, for precautionary reasons, they would be equally applicable to the provisions of the court on the automation of blast furnaces.

So ArcelorMittal's Ilva contract should be considered "solved". This is what is stated in the ArcelorMittal summons to Ilva in extraordinary administration – filed with the court of Milan – published by the website of the "Corriere del Giorno", a newspaper of Taranto.

The requests of Arcelor Mittal's lawyers
ArcelorMittal's lawyers, as a first request to the Milan court, declare the contract for the Ilva of Taranto to be dissolved as the legal protection ceases, ArcelorMittal has legitimately exercised the right of withdrawal. In the alternative, the request is to declare the contract terminated due to "supervening impossibility" due to legal proceedings involving parts of the plant and putting its activity at risk.

Finally, ArcelorMittal's lawyers indicate that – if these reasons were not considered sufficient – there is a further request to cancel the contract "by intent". In particular, it is claimed that the companies in extraordinary administration, in the data room phase, "have deliberately incorrectly described and misleading fundamental circumstances relating to the conditions of the blast furnace 2 and the state of compliance with the provisions" indicated by the court of Taranto for adapt the blast furnaces.

Svimez: from closure Ilva negative impact of 3.5 billion on GDP
The Svimez, using its econometric forecasting model, assessed the impact for the Italian economy and, in particular for the southern industry, of the closure of Ilva, distinguished by the different geographical areas. The evaluation considered the effects of the closure with respect to the current production structure, which is already characterized today by a production (around 4.5 million tons) lower than the objectives set by the industrial plan. The annual impact on national GDP is estimated, considering the direct, indirect and induced effects, in 3.5 billion euros, of which 2.6 billion are concentrated in the South (in Puglia) and the remaining 0.9 billion in the Center-North , equal to 0.2% of Italian GDP. If we consider the impact on the GDP of the South it rises to 0.7%.