Italian steel group Arvedi has stated in recent weeks that the hot area of its Trieste-based Ferriera di Servola plant will be closed down. Ferriera di Servola was purchased by Arvedi from insolvent Italian steel group Lucchini in 2014. In the past few years, although Arvedi spent almost €250 million on the site, there have been polemics concerning pollution by the plant due to its proximity to the city of Trieste, and several local politicians have been asking for its closure.
On Wednesday this week, Arvedi executives met with the Italian economic development minister Stefano Patuanelli , local authorities and union representatives and confirmed it intends to proceed with the closure of Servola's hot area and to work on a business plan to relaunch the mill's cold area operations via an investment of about €150 million, according to local unions. New galvanizing and painting operations will be created through these new investments. The economic development minister and Arvedi's management will meet again in mid-October in order to take stock of the situation. The aim is to finalize the new industrial plant by the end of this year.
According to union representatives, there are 400 jobs at stake at the pig iron mill, while 200 workers are employed at the cold area. Some of the workers in the hot area could be transferred to the expanding cold area and to other areas such as the power plant, logistics activities at the nearby port, and dismantling operations of the hot area.