Government No Longer Rules Out State Stake in Ilva
A viable industrial plan is a prerequisite
Taranto – The Italian government is no longer ruling out a public stake in the former Ilva steel mill in Taranto. Undersecretary Alfredo Mantovano stated during talks with union representatives in Rome that a government investment could be considered, provided there is a sound and credible industrial plan.
According to him, reviewing the bids received will take several months. During this time, the plant will remain under special administration. Only after the evaluation period has ended will a negotiation phase with potential investors begin, at the conclusion of which a decision will be made regarding a possible equity investment by the state.
At the same time, the government temporarily suspended the announced mass layoffs in the supplier sector. More than 2,500 employees at supplier companies were facing termination proceedings after uncertainty surrounding the future of the blast furnaces had significantly worsened the companies’ order situation. The business associations Aigi and Aepi heeded an appeal from the government headquarters, Palazzo Chigi, and froze the proceedings. The suspension will remain in effect until the Milan Court of Appeals rules on a lawsuit challenging the impending shutdown of the blast furnaces.
The crisis stems from a legal dispute over the plant’s environmental permit, which threatens the plant’s so-called “hot zone.” According to industry representatives, without a court-ordered stay of the closure order, the blast furnaces faced a shutdown that would be nearly irreversible. At the same time, the government is pursuing the goal of transitioning steel production in Taranto to more climate-friendly processes—such as electric arc furnaces and the direct reduction of iron ore—in the medium term; according to Mantovano, the necessary funding has already been allocated.
Mantovano cited short-time work, severance pay arrangements, and reindustrialization projects as additional measures to safeguard employment in the region. A permanent coordination committee comprising the government, labor unions, and businesses is intended to monitor further developments and resolve outstanding issues regarding employment, steel production, and the region’s economic future.
