Taranto-based steelmaker Ilva, a subsidiary of Italian steel producing group Riva, has announced the idling of its slab plant No. 2 with the layoff of about 800 workers.
According to union sources, the plant is to remain idle for two weeks; however, company management has not confirmed any date for the restart of operations. In a statement on the issue, the company cited as the reasons behind the decision "the sharp global financial slump" and "the fall of steel demand in sectors such as automotive, construction and white goods. The automotive sector, for example, has registered a 40 percent slump in registrations."
Riva Group also added, "Steel mill No. 2 has not been shut down completely. As soon as allowed by market conditions, operations will be restarted and all workers will return to their jobs."
The decision to idle the No. 2 plant has come out of the blue. When announcing a cutback in production in recent weeks at the No. 2 plant, Riva Group vice-chairman Fabio Riva did not give any indication that the plant would be idled.