Ex-ILVA Steelworks in Taranto Set for Major Overhaul to End Steel Monoculture
Taranto: The former ILVA steelworks in Taranto, Puglia, is poised for a significant transformation as a special commissioner is appointed to diversify the local economy and reduce its reliance on steel production. This decision comes after a draft decarbonisation agreement was signed by all parties, aimed at providing alternative employment opportunities for many of the 18,000 workers currently engaged in the steel industry, as announced by Puglia Governor Michele Emiliano.
According to Ansa News Agency, the primary objective is to move away from the “steel monoculture” that has dominated Taranto’s economy. Governor Emiliano highlighted the importance of this transition, stating that it is essential for the future of both ILVA and the city. The agreement includes the appointment of a new commissioner tasked with overseeing the reindustrialization of the steelworks’ vast 15 million square meter area. This region has been plagued by higher-than-normal cancer rates due to its toxic emissions.
The plan not only
focuses on moving beyond the steel industry but also on enhancing related industries. A call for expressions of interest will be issued to explore potential new production investments in the area. Job protection is a key component of the agreement, which also mandates full decarbonization in a new tender aimed at finding a buyer for the ADI group, currently in extraordinary administration.
However, the shift to electric furnace production, which requires fewer workers than traditional coal-fired methods, presents challenges. A strategy to protect workers is crucial, as redundancies could occur. The construction of a DRI hub, essential for powering new furnaces, could mitigate some job losses, but its location is still undecided.
Without the DRI hub, FIM CISL trade union estimates suggest over 7,000 jobs could be at risk. The final decision is postponed to after September 15, when potential investors must submit binding offers. A subsequent meeting will evaluate the feasibility of a project proposed by Busin
ess and Made in Italy (MIMIT) Minister Adolfo Urso, which includes multiple electric furnaces and DRI plants.
The City Council has proposed an alternative plan, potentially attracting investors like the Indian group Jindal, featuring three electric furnaces and a single DRI plant in Taranto. Urso’s secondary option involves only the electric furnaces. Additionally, Gioia Tauro is being considered for the DRI hub.
Jindal has also shown interest in acquiring only the Southern plants if the facilities are sold separately. Government sources stress that the best offer in terms of employment and production will be prioritized, regardless of whether the plants are sold together or separately.
The latest meeting at MIMIT introduced new management for DRI d’Italia, a company established to develop pre-reduced waste production plants. The company is backed by £1 billion in public resources, initially from the National Recovery and Resilience Plan and later redirected to development and cohesion funds. The meeting i
ncluded the newly appointed President Cesare Pozzi and CEO Ferruccio Ferranti, following the annulment of the tender for the hydrogen-powered DRI plant in Taranto by the Council of State.