Ferriere Nord idles production on high energy costs

Ferriere Nord, a subsidiary of long steel producer Pittini, has requested access to a temporary layoff scheme for over 750 workers at its plant in Osoppo near Udine, northern Italy, Kallanish learns from union sources.

The layoffs are starting this week and should last until 2 October. For the next two weeks, both the hot and cold areas at Osoppo will be idled. Informed sources say this will help address the issue of overcapacity for long products. The layoff request, however, is mainly driven by skyrocketing costs of energy in Italy and raw material procurement difficulties. Other producers of wire rod in Italy still remain idle due to longer maintenance stoppages this summer.

The electric arc furnace-based plant in Osoppo has a rebar and rebar in coil mill, a wire rod mill, and several mills for the production of mesh and lattice girders.

Ferriere Nord has another plant in Potenza, southern Italy, which make bars, mesh, rebar in coil and wire rod mainly for construction and mechanical applications.

Pittini employs around 1,800 workers and has a yearly production capacity of approximately 3 million tonnes across 18 production and logistic facilities.

In Italy, the group includes Ferriere Nord, Acciaierie di Verona, Siderpotenza, Pittarc, La Veneta Reti and Siat.

Pittini did not comment before deadline.

Natalia Capra France