Taranto-based Italian steel producer Ilva is to be run by a government-appointed administrator, Italy's Industry Minister Flavio Zanonato stated on Tuesday, June 4. Ilva's owners stand accused of serious breaches of anti-pollution laws and of tax fraud on a massive scale.
The appointment of an administrator by the government is aimed at preventing the shutdown of Europe‘s biggest steelworks. Minister Zanonato said in the Italian parliament said that such a closure would cost Italy €8 billion ($10.45 billion) a year. Last month, magistrates had ordered the seizure of a total €9.3 billion worth of assets belonging to the Riva family, the owners of Ilva, stating that the seizure was needed to pay for the environmental cleanup of the plant, while they accused the Rivas of hoarding their money in tax havens. The move by magistrates was followed by the resignation of the board of Ilva.
Ilva produced nearly 8.5 million mt of steel in 2011, almost 30 percent of Italy's overall steel output.