The demand is part of a petition to the Italian government by the Cgil and Fiom unions, representing 500 workers. The main reasons for the production disruption include a lack of raw materials and temporary layoffs. Production capacity is reportedly at very low levels due to the current conditions.
Although Liberty Magona is one of the most strategically important plants in Italy, it has experienced serious production problems in recent months due to supply problems. In an attempt to address this situation, the unions have approached the Ministry of Enterprises and Made in Italy (MIMT), requesting a supply agreement with Acciaierie d'Italia (ADI). ADI, the plant's traditional HRC supplier, provided only half of the 110,000 tons of HRC requested. This has led to a further decrease in production.
While the future of the plant remains uncertain, several organizations, including foreign investment funds and steel companies, are interested in buying Magona. The sale process is overseen by the Italian government and binding bids are expected to be submitted in November. As Magona's restructuring process continues, unions are in tough negotiations with the government.
Liberty Steel plans to divest not only Magona, but also the Liege plant in Belgium and the Dudelange plant in Luxembourg. These plants have significant steelmaking capacity, with a combined annual production capacity of more than 2.5 million tons. The Liege and Dudelange plants produce galvanized HRC, while Magona is noted for its high-quality pre-painted steel brand PPGI. Dudelange also has a special position as the only European producer of Aluzinc. The strategic evaluation of all these plants is underway with the aim of establishing partnerships with Liberty Steel with long-term HRC supply contracts or selling these units.
The future of Magona in Piombino is likely to be shaped by the securing of HRC supply and the entry of new investors. Union pressure on the government is seen as an important step in protecting workers' rights and restoring the plant's production capacity to previous levels.
Comments
No comment yet.