Political Uncertainty Holds Down Expansion of Ilva Production

Troubled Italian steel mill Ilva is set to further boost productivity following the recently relaunched heavy slab production at its site in Taranto. However, a complete reboot of the company remains in limbo due to continuing uncertainty in Italian politics.

Heavy plate production was resumed in May after stopping for almost a year. After the first four weeks of production, the company decided this week to increase plate production from the beginning of June to produce about 60,000 tonnes in two weeks.

While the increase in slab production is a good sign for the plant, the company's future remains uncertain. This is due to the fact that Italy is going through one of the most significant political crises in the country's history.

Two populist parties (Movimento 5 Stelle and Lega Nord) won a majority in the Italian parliament in elections last March. The parties continue to delay the launch of the new Italian government, which is also creating wider tensions in Europe. In their political agenda, both sides hinted at the possibility of closing the Ilva plant in Taranto.

While political uncertainty continues, negotiations between ArcelorMittal and the Ilva workforce have been put on hold. “At this stage, we can only wait and see what the official positions of the new Italian government will be; uncertainty will certainly delay the process of restarting Ilva in the ArcelorMittal group, ”the company said.