The Italian government has rejected ArcelorMittal’s latest plan for Taranto-based steelmaker Ilva plant on June 9. The plan included job cuts and postponement on investment pledges.
ArcelorMittal’s new industrial plan proposed to cut 5,000 jobs and postpone environmental investments while maintaining a total production target of 6mn mt of steel per year until 2025. The company also sought state funding under the COVID-19 relief package.
In late May 2020, the Italian government had agreed to underwrite the steelmaker’s restructuring costs associated with continuing operations at Ilva mill. ArcelorMittal took over the plant in the southern city of Taranto in 2018, however, its rescue plans triggered months of wrangling.
The Italian government aims to save jobs. Ilva provides direct employment to over 8,000 people in addition to thousands of indirect jobs as contractors and suppliers. Italy’s industry minister Stefano Patuanelli stated that the government would try “to reverse” the plan’s terms and safeguard all jobs at the plant.