Reuters reported that Italy faces a deep crisis as its biggest steel plants struggle for survival, putting it in the forefront of a permanent decline in western Europe’s steel sector and increasing cost pressures on many of the region’s industries.
Producing crude steel in the European Union, where supply exceeds demand by 30% has become too costly. Only the most technologically and environmentally advanced plants are set to survive.
Italy’s largest steel producers, ILVA and Gruppo Lucchini, face potential shutdowns, which could cost the country 25,000 to 30,000 direct and indirect jobs.
The future of Italy’s largest stainless steel factory, Acciai Speciali Terni, also hangs in the balance as it is up for sale. Many fear a sale might result in a break up, production cuts and job losses.
The broader industry predicament is so acute that the country Europe’s second-largest steel producer after Germany risks becoming a steel importer.
Italy’s steel chain accounts for about 4% of its GDP.
Mr Gianni Venturi national steel co ordinator for Italy’s biggest union, FIOM CGIL said that “There is a serious risk of losing integrated steel production in our country. The impact on the Italian infrastructure, construction and automotive sectors, which are already suffering, would be terrible.”
“Due to the steel demand collapse in Europe, the multinationals are divesting their French, Italian, German assets and moving to lower-cost countries.”
