Italy Supreme Court Reviews Closure of Taranto Steelworks

The Supreme Court of Italy is reviewing a case to determine if the blast furnaces at the Acciaierie d’Italia steelworks in Taranto must be closed. As the only integrated plant in Italy producing metal from iron ore and coal, a permanent shutdown would threaten roughly 8,000 direct jobs and numerous contractors.

Giorgia Meloni, the Prime Minister of Italy, has committed approximately €5 billion to the facility since 2022. She stated her government would do "whatever it can" to protect production, particularly with a national election scheduled for next year. To manage the legal uncertainty, the government extended the bidding deadline for the plant, where India's Jindal Steel International has emerged as the leading bidder.

The legal proceedings occur amid significant social unrest. Workers recently conducted a five-day strike that blocked an Eni refinery and disrupted fuel supplies. While Jindal Steel International leads the bid for the overall facility, a consortium of Italian steelmakers coordinated by Federacciai remains interested in the plant's downstream assets.