December 17, 2012
Italian steel industry, ranked as the second one in Europe in terms of steel production, has been shaking for several months. The reason for this is the scandalous story with the country's largest steel plant Ilva, owned by the company Riva Group. According to the recent court decisions, the company's products which according to the statements of the law enforcement agencies is responsible for the high level of environmental pollution and increased mortality in the city of Taranto, was seized. Estimated by mass media, there about 1.7 million tons of rolled steel accumulated at the warehouses, which has not been sent to the Customers since the end of November. At this the plant, according to court decisions, should stop the production of sinter, coke and cast iron so that to stop the environmental pollution with its emissions.
Riva Group Company claims that closing of the plant, which produced about 8.5 million tons of steel last year which amounts almost to a third part of the national total, will lead to the closure of other businesses of the group that use its products, and to the dismissal of about 4 thousand people. This is in addition to 1.2 thousand people, who have already been sent home after the hurricane struck on November 28th that seriously damaged some production lines. Totally there are 20 thousand employees working at Ilva and at the servicing companies, and for the depressive southern part of Italy the loss of these positions will be irretrievable.
The Italian Government has adopted a special decree, under which Ilva may continue its activities during the implementation of the project of the plant upgrading. Till 2016 Riva Group should invest about 3 billion euros into the reconstruction of the sinter plants, blast furnaces and coke batteries, equipping them with modern gas cleaning systems. The company has already stopped for the overhaul, which will last for one and a half years, one of the blast furnaces. However, this decree must be approved by the Parliament, which includes not only the supporters of the plant operation. Even in Taranto, the welfare of the third part of population, which is directly related to Ilva, are not sure in it. Deaths from some types of cancer exceed the average state level by 30-190%, thus so many people that have already suffered from plant emissions, guess that in this situation health is much more important than money. In addition, the government decree de facto recalls the judgment that violates the constitutional principle of powers separation (source: SOGRA-news dated December 17, 2012)