Global investor Flacks Group has confirmed plans to acquire Italian national steelmaker Acciaierie d’Italia (ADI), aiming to revitalize the firm with a target annual capacity of 6 million tons. 

The restructuring involves installing two electric arc furnaces (EAF) with a combined 4-million-ton capacity while retaining one traditional blast furnace. Preserving the blast furnace is essential for producing the high-strength steel grades required by the automotive, energy, and shipbuilding industries, which are currently difficult to manufacture using EAF technology alone.

The group is evaluating MIDREX and ENERGIRON HYL technologies, both of which are hydrogen-ready. However, Flacks Group noted that while they aim for significant CO2 reductions by 2035, the initial phase will rely on natural gas, as a full immediate shift to green hydrogen remains "unrealistic" due to current costs and availability. 

Under the proposed deal, the Italian government will remain a partner with a 40% stake, and Flacks Group has committed to retaining 8,500 skilled workers.