Since 9 October the hot area of the former Ilva in Taranto has suspended production activities. Acciaierie d’Italia’s decision comes after the Milan Court of Appeal rejected the request to postpone the execution of the provision that imposes a stop on the plants. The consequence extends to the factories in Genoa and Novi Ligure, which are expected to temporarily stop by November 15 because they will no longer have steel to process.
The crisis concerns the future of the largest Italian steel plant, but also thousands of workers and an entire industrial supply chain. Meanwhile, the government is preparing new income support measures and aims to convert production towards less polluting technologies.
Why Taranto stops
On 27 July the Milan Court of Appeal ordered the closure of the hot area by 28 October. On 5 October, the rejection of the suspension request presented by the company was notified. Acciaierie d’Italia, Ansa reports, therefore communicated that from 9 October the production activities of the affected plants would be interrupted.
The hot area is the part of the plant where raw materials are transformed into steel through very high temperature processes. The blast furnaces operate here, systems that allow the material destined for subsequent processing to be obtained. It is an essential phase of traditional production, also associated with a significant share of the environmental impact of the industrial complex.
For the moment the systems are kept in hot stand-by, i.e. in heating conditions to allow for a possible restart. According to the calendar communicated by the company, in the absence of a favorable provision from the Court of Cassation, heating maintenance will be interrupted on 24 October and the definitive shutdown of the hot area will be completed by 25 October. These are expected deadlines, not operations already concluded.
Because Genoa and Novi Ligure also stop
The factories in the North depend on the steel produced in Taranto, which is then processed to obtain products intended for industry. Without new supplies from Puglia, the stocks and material already available will allow it to continue for a limited period.
During the meeting on 8 October with the government, Commissioner Giovanni Fiori explained that, based on the production in progress and the orders received, Genoa will be able to work until 15 November. The general temporary shutdown of the Genoa and Novi Ligure plants is expected by that date.
Acciaierie d’Italia has around 9,500 employees, of which 900 in Genoa and 500 in Novi Ligure. The Racconigi plant, in Piedmont, with 90 employees, was also indicated by the presidents of the Liguria and Piedmont Regions among those involved in the crisis.
The unions have called a 24-hour strike in all locations for Monday 12 October. The redundancy fund already authorized concerns 4,450 workers until the end of February 2027, but the number could increase. The mayors of Genoa and Novi Ligure, Silvia Salis and Rocchino Muliere, defined the announcement of the stop as “completely unacceptable” Ex Ilva, stop in Taranto from 9 October and stop in November for Genoa and Novi Ligure. Thousands of jobs at risk…
The plan for a less polluting steelworks
The government wants to maintain steel production through plants other than those of the traditional cycle. At the table on 8 October, the undersecretary to the Presidency of the Council Alfredo Mantovano indicated the objective of using DRI systems and electric ovens, “as long as it is within the context of a credible industrial plan”.
DRI, the English acronym for Direct Reduced Iron, is a process that allows iron to be obtained from ore without using the traditional blast furnace. The iron obtained is then transformed into steel in electric furnaces. This technology can reduce emissions compared to the traditional cycle, especially if it uses electricity produced from renewable sources.
However, the reconversion will take a long time. According to an estimate reported by Corriere della Serabuilding an electric oven takes at least three years. This is a technical evaluation, not an official deadline: the tender for the sale of the former Ilva provides for up to three ovens, but does not set a date for their start-up. The actual times will depend on the industrial plan, investments and necessary authorizations.
The former Ilva is managed under extraordinary administration by the State, which for some time has been looking for new private entities to entrust the plant to. For now, the decisive questions remain open: who will invest in the reconversion, when the plants will be able to restart and what guarantees the workers involved in the shutdown will have.
