According to local Italian newspapers, Italian steelmaker Riva Group's Taranto-based steelmaking complex Ilva has announced to labour unions its decision to indefinitely suspend operations at its coil production line No. 1.
The announcement has raised concerns as in 2008 a similar announcement was the first sign of the coming crisis. The plant remained idle for about two years and was recommissioned in late 2010, indicating that the worst of the crisis had finally passed.
Meanwhile, the galvanizing unit and the plate production line at Ilva will also be stopped, for maintennance works to be carried out over 10 days. Another measure adopted by Ilva in response to current low demand is the reduction of work shifts at its tube and pipe mill No. 2.
Ilva management has stated that the workers affected by the decisions will not be laid off, but will be employed in other shops of the steel complex. According to the local newspapers, Ilva is seeking to reduce flat rolled production due to feeble demand and outstanding volumes of finished products stocked in its premises. Nevertheless, the company has not announced any decrease in activity at its four blast furnaces.