Italian Supreme Court Confirms Shutdown of Ilva Steel Plant's Hot-Rolling Area

The Italian Supreme Court has issued a definitive ruling confirming the permanent closure of the hot-rolling area at the former Ilva steel plant in Taranto. The decision, handed down by the Joint Civil Chambers, upholds a previous order from the Milan Court of Appeal, citing the precautionary principle as a primary driver for protecting public health and the environment. Following the verdict, the facility has begun the process of shutting down blast furnaces 1, 2, and 4, with technical crews dismantling burners that had been maintained in a pre-heating state.

The legal battle, which spanned several years, centered on the impact of industrial emissions on the local population. The Supreme Court rejected appeals from Ilva and Acciaierie d’Italia, concluding that the presence of residual asbestos in the plant's structures, particularly within the blast furnace cowpers, posed an unacceptable risk. The court emphasized that the precautionary principle requires proactive measures when scientific uncertainty exists regarding potential harm to human health, effectively mandating the cessation of production in the affected sections.

As the industrial landscape in Taranto shifts, the future of the site remains uncertain. A tender for the acquisition of the former Ilva assets is currently open, with a deadline set for November 8. Antonio Gozzi, president of the steel industry association Federacciai, stated that Italian steelmakers have not yet reached a final decision regarding their participation. While some potential buyers, such as the Indian firm Jindal, have expressed interest in the cold-rolling division, the scope of the site has been significantly redefined by the court’s ruling, limiting the viable production area to the cold-rolling section.

In the interim, the company has announced that strip mill 2 is scheduled to resume operations on November 10. This restart will rely on 80,000 tons of steel slabs sourced from the Marcegaglia Group. While this provides a temporary reprieve for a small number of workers who had been placed on furlough, the company noted that it currently lacks visibility on production plans beyond January 2027, leaving the long-term viability of the site in question.

The economic and social repercussions of the shutdown are significant, particularly concerning the workforce. The Ministry of Labour has scheduled a meeting with trade unions to discuss a new redundancy fund application. The proposed measure would cover over 8,600 workers, primarily in Taranto, through February 2027. Some political factions have suggested that funds originally earmarked for pension reforms could be redirected to support early retirement packages for older employees who may face difficulties in finding new employment following the plant's downsizing.

The government is currently navigating the complexities of these labor issues while balancing budget constraints. As the administration considers how to manage the transition for the affected workforce, the focus remains on whether the site can be repurposed or if the closure of the hot-rolling area marks the end of a major chapter in Italian industrial history. For now, the implementation of the court’s order continues, marking a decisive shift in the regulatory approach to industrial operations in Italy.