Piombino posts loss, unions expect new JSW plan

JSW Steel’s Italian facility in Piomino produced 84,063 tonnes and sold 83,994t of steel products in the third fiscal quarter through December 2020, Kallanish learns from the Indian steelmaker’s latest earnings report. The unit also posted an Ebitda loss of €0.52 million ($0.63m).

JSW Italy is facing a liquidity crisis. The company is asking for a grant backed by the Italian government of €50m to upgrade the plants and dismantle outdated equipment. It is also seeking a grant of €32m for environmental and energy efficiency improvement works, the release of government guarantees for €75-100m to tackle the current liquidity crisis and a soft loan of €75-100m.

The Italian government previously announced its plan to become a financial partner and stakeholder in JSW Italy through its financial body Invitalia, to support the relaunch of the Piombino steelworks (see Kallanish 16 September). However, the parties have not yet reached an agreement.

The company is now expected to submit a revised industrial plan before the end of January that should include the construction of an electric arc furnace, a Uilm union representative confirms. The presentation of a revised industrial plan was already previously postponed, with unions losing hope over the relaunch of the troubled steelmaker, Kallanish is told.

JSW has reported a swift demand recovery in its domestic Indian market.