The Cgil e Fiom unions, which represent 500 workers at Liberty’s Italian re-rolling facility Magona, in Piombino, are requesting that the government ensure the procurement of hot rolled coil in order to recommence production.
The facility is producing very low volumes as a result of temporary layoffs and the absence of HRC feedstock. According to sources with knowledge of the situation, 16 organisations, including foreign funds and steel companies, have expressed interest in acquiring the Magona plant.
Unions are asking the Ministry of Enterprises and Made in Italy (MIMT) to negotiate a supply agreement with Magona’s conventional suppliers, including Acciaierie d’Italia (ADI). Although Magona has ordered 110,000 tonnes of HRC from ADI, only 53,000t has been delivered, a union note obtained by Kallanish says.
Magona’s union representatives met with the MIMT in Rome earlier this week as the sale of the troubled re-roller is currently being supervised by the Italian government. The process, however, is still in a preliminary phase, with the submission of binding offers expected to start in November.
Liberty Steel intends to sell Magona, its Belgian facility in Liege, and Dudelange in Luxembourg. In May, it initiated a strategic assessment of its downstream steel plants in western Europe in response to expressions of interest from multiple parties. The objective was either to establish partnerships through long-term HRC feedstock supply contracts or to divest the units.
The businesses have a combined rolling capacity of more than 2.5 million tonnes/year. Liège and Dudelange produce galvanised HRC, while also offering tinplate for packaging and black plate as a substrate for tinplate. Dudelange is also the sole European producer of Aluzinc. Magona has a long heritage and well respected pre-painted PPGI brand, with its own port access at the plant.
Natalia Capra France