Italian steelmaker Riva Steel has announced that from today, September 12, all its activities will cease, including production activities at its plants in Verona, Caronno Pertusella (Varese), Lesegno (Cuneo), Malegno, Sellero, Cerveno (Brescia) and Annone Brianza (Lecco), as well as its services and transport activities (Riva Energia and Muzzana Trasporti). Riva Steel is the parent company of the troubled Taranto-based steel producer Ilva, which is not affected by this decision by Riva Steel.
Riva Steel said that their decision became necessary because the seizure of billions of euro of assets of the Riva family, owners of Riva Steel, ordered by Taranto-based judge Patrizia Todisco on May 22 and on July 17 this year - and communicated on September 9 - means that the economic and operating conditions for the continuation of normal activity by Riva Steel no longer exist.
The seizure subtracted from Riva Steel its company assets, including production plants, and cash from its current accounts, blocking the banking activities of the company and preventing the normal cycle of company payments.
Riva Steel will contest the seizure order, but in the meantime it has to proceed with the suspension of activities and the implementation of safety measures for all plants. This will be followed by the suspension of about 1,400 workers.
In recent days, the Italian financial police seized financial assets and company shares worth a total of more than €916 million from 13 companies of Riva Group, as ordered by judge Patrizia Todisco within scope of the investigation into Riva Group's management for criminal association resulting in corruption and environmental disaster.