Acciaierie d’Italia steel mill is under threat of shutdown

Italian authorities and trade unions are concerned about the future of the Acciaierie d’Italia steel plant in Taranto, Il Fatto Quotidiano reports.

Italy’s Minister of Enterprise and Production Adolfo Urso emphasized that all necessary measures must be taken to ensure the continuity of production. The emergency administration commissioners demanded urgent updates on the status of the assets and initiatives being implemented, and also requested an inspection.

The government fears that by the time the emergency administration can be imposed, it will have to deal with the company’s unviable assets.

The state investment agency Invitalia, which owns 38% of Acciaierie d’Italia, also asked the holding led by Lucia Morselli to «take all necessary measures to ensure the continuity of production and the safety of employees and businesses.» They expressed concern about a possible shutdown of blast furnaces, the consequences of which would be potentially catastrophic and irreversible, including for related sectors.

At the same time, according to Rocco Palombella, secretary of the Uilm trade union, Taranto has been in the process of shutting down several facilities for some time, with blast furnace No. 2 already shut down and coke oven batteries being prepared for shutdown. He also condemned the «illegal movement» of workers from one facility to another without proper knowledge of the work and risks. The company sharply rejected the latter accusation, claiming that it was operating in accordance with the law. The unions expected that all necessary inspections would be carried out immediately.

As GMK Center reported earlier, Italy is preparing to place Acciaierie d’Italia under special administration. If the procedure is initiated, the authorities promise to guarantee current liquidity with a €320 million bridge loan on market terms.