Piombino-based Italian steel producer Liberty Magona will shut down its plants in the coming weeks due to lack of feedstock, specifically hot rolled coils. According to sources close to SteelOrbis, the stopping of operations will begin on May 28 with the pickling and rolling lines, with the galvanizing lines to be halted within the first ten days of June. Pre-painting operations will continue "as long as stocks last". The halt is due to the bankruptcy of Greensill Capital and the consequent difficulties faced by Liberty Steel group, a subsidiary of GFG Alliance. Several sources have stated that the Magona plant is no longer receiving and will not receive feedstocks - ArcelorMittal, its main supplier, will not send any other material as it first demands the money it is owned by other European plants of the Liberty group, especially in Liège-Dudelange.
Italian metalworking unions Fim, Fiom and Uilm on Tuesday, May 25, will meet Liberty Magona's CEO and head of personnel, while they have also asked Italy’s Ministry of Economic Development for an urgent meeting. Liberty Magona has over 460 employees and has a capacity of 800,000 mt per year of galvanized and prepainted steels, although in recent years it has operated at a reduced capacity.