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Ilva steelworks are vital for underdeveloped southern

Italy

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India's Vulcan Green Steel, Ukraine's Metinvest among

bidders

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Italy took control of Ilva after clashes with

ArcelorMittal

By Giuseppe Fonte

ROME, July 24 (Reuters) - Six international and domestic

players have expressed interest in taking over the steelworks of

Acciaierie d'Italia (ADI) which was formerly known as Ilva, the

government told trade unions during a meeting on Wednesday.

They are India's Vulcan Green Steel and Steel Mont,

Ukraine's Metinvest, Canada's Stelco ( STZHF ) and Italian steel firms

Arvedi and Marcegaglia, government officials told Reuters.

The fate of ADI is a major headache for Italian Prime

Minister Giorgia Meloni, as its closure would have serious

knock-on effects for the country's manufacturing sector.

ADI's main plant in the city of Taranto is one of the

largest in Europe and a major employer in Italy's

under-developed south.

Addressing unions, Industry Minister Adolfo Urso said six

players would be interested in taking part in the tender process

that Rome was expected to launch by the end of this month,

according to the officials, who attended the meeting.

The government took charge of the group's factories in Italy

this year under a special administration procedure, ending weeks

of clashes with its then top shareholder ArcelorMittal,

the world's second-largest steelmaker.

As energy costs rose and rolled steel coil prices fell, ADI

ran out of cash and accumulated huge debts with suppliers

including energy group Eni and grid operator Snam

, prompting the government to offer financial aid and a

temporary layoff scheme to keep staff at home.

Canada's Innovation Minister Francois-Philippe Champagne

championed Stelco's ( STZHF ) bid in a telephone conversation with Urso on

Tuesday, the Italian ministry said in a statement.

Metinvest, Ukraine's largest steelmaker, is looking for

production sites abroad to offset significant asset losses at

home, including the vast Azovstal steel plant in Mariupol that

was destroyed during a prolonged Russian siege.

Vulcan Green Steel is part of Jindal Steel Group, which has

already signed off on a preliminary agreement with the Italian

government to relaunch the Piombino steelmaking site in Tuscany.