Acciaierie d'Italia in Extraordinary Administration, the operator of the former Ilva steelworks, has clarified that the temporary shutdown of its steelmaking facilities, starting with the hot-end operations at its Taranto plant, is the result of judicial restrictions and operational and financial constraints that prevent production from continuing beyond October 25. The shutdown will also affect the company's plants in Genoa and Novi Ligure, which depend on steel supplies from the Taranto site.
In a statement issued on Saturday, October 10, the extraordinary administration explained that the shutdown process stems from a ruling issued by the Milan Court on July 27 and the subsequent 90-day deadline set by the Milan Court of Appeal. According to the company, the requirements imposed by the court could not be met within the prescribed timeframe, prompting it to file two appeals in an effort to maintain production. The latest appeal, aimed at keeping the blast furnaces in hot-idle mode at least until the Supreme Court of Cassation delivers its ruling, was rejected on October 5.
Raw material supply constraints threaten downstream operations
In addition to the judicial restrictions, the company highlighted difficulties related to raw material procurement. With the October 25 deadline approaching, further purchases could result in inventories that cannot be processed within the permitted operating period, generating costs that, according to the extraordinary administration, cannot be borne by the creditors involved in the proceedings. The suspension of production in Taranto would also directly affect the Genoa and Novi Ligure plants, which have no independent hot-end facilities and rely on steel supplies from the southern Italian site. According to ADI, sourcing slabs and coils from the international market would not provide an immediate solution, as delivery lead times can extend over several months. Moreover, any alternative supplies would need to meet the quality specifications required by the company's customers.
All eyes on October 20 Supreme Court hearing
As previously reported by SteelOrbis, the prospect of a shutdown of Taranto's hot-end operations has raised serious concerns among Italian steel industry participants. In particular, Italian metals distributors' association Assofermet has warned that a permanent reduction in domestic steelmaking capacity could increase the country's dependence on imports, against a backdrop of tightening EU steel trade restrictions.
The extraordinary administration reiterated that it had explored all available options to avoid halting production but had been unable to identify a solution compatible with the existing restrictions. Attention is now turning to the Supreme Court of Cassation hearing scheduled for October 20, with the company hoping for a ruling that could prevent the permanent closure of its facilities.
