Italian Court Upholds Shutdown Order at Taranto Steelworks
A Milan appeals court has upheld an order to shut down blast furnaces at the former Ilva steelworks in Taranto, dealing a setback to government efforts to keep the plant running.
An Italian appeals court has upheld an order requiring the shutdown of blast furnaces at the former Ilva steelworks in Taranto, rejecting a challenge from operator Acciaierie d'Italia. The ruling, confirmed by a legal source, deals a setback to Prime Minister Giorgia Meloni's efforts to keep the country's largest steel plant running while a buyer is sought.
The Milan Court of Appeal turned down the company's request to overturn an earlier decision that ordered the hot-end area of the plant to be closed and remediated, citing inadequate environmental safeguards for residents exposed to pollution.
The sprawling site in southern Italy has long been at the centre of disputes over environmental damage, public health, industrial policy and employment. It is Italy's only integrated steelworks, producing steel from iron ore and coal through a blast-furnace process, and supplies customers in sectors ranging from construction to automotive manufacturing.
The plant directly employs around 8,000 workers and supports a large network of contractors in a city of fewer than 200,000 people, making it a leading local employer.
Acciaierie d'Italia has argued that shutting the hot-end facilities would jeopardise steel production at the site. The company has warned that, beyond a certain point, cooling procedures for the blast furnaces could make restarting operations impossible without extensive repairs.
The government is seeking investors for the company, which is currently under extraordinary administration, and faces mounting pressure to find an alternative industrial solution less than a year before a national election.
Alfredo Mantovano, undersecretary to the Prime Minister's Office, told unions this week that the government did not rule out maintaining a public stake in the company. He said Italy's steel industry needs a green future based on electric arc furnaces powered by direct reduced iron (DRI), adding that the government was ready to use available funding for DRI projects.