Taranto plant to close without government action

ArcelorMittal Europe's CEO Geert Van Poelvoorde confirmed that operations at the Taranto plant in Italy will have to be halted on 6 September if action is not taken by the government to exempt it from the Crescita law.

"The government continues to tell us not to worry, that it will find one solution, but so far there is nothing. So on 6 September the plant will close," Van Poelvoorde said at the Eurofer European Steel Day in Brussels.

In 2018, ArcelorMittal completed the purchase of former Italian steelmaker Ilva, acquiring its assets including the Taranto plant. The plant was seized by the police over a pollution scandal under the previous owner that caused dozens of deaths.

When it purchased the plant, ArcelorMittal agreed to invest over €1.15bn to overhaul the operations and make them compliant in a 2017 environmental plan approved by the Italian government.

But the new government formed in 2018 launched the Crescita Decree (or Growth Decree) to stimulate Italy's economy, due to come into force on 6 September. The decree would remove immunity from ArcelorMittal for unlawful emissions that stem from it putting into place its environmental plan.

"The entry into force of the Crescita Decree would not allow any company to operate the plant after 6th of September, a date that has been set by the government, unless the necessary environmental protection is guaranteed," said ArcelorMittal Italy.

The CISL trade union that represents the plant's workers appealed to the government and the steelmaker to come to an agreement that would help save jobs. "ArcelorMittal must demonstrate a sense of responsibility. But the same responsibility must come from the government and in particular from the minister of development [Luigi] Di Maio, who is the guarantor of the agreement with ArcelorMittal and therefore has the duty to intervene clearly."

Van Poelvoorde said that the closure may still be avoided. "We still have two months. I hope the government finds a solution; we are open to discussion," he said.