The situation at Liberty Steel’s Magona re-rolling facility in Piombino, Italy, has reached a critical point. The Cgil and Fiom unions, which represent approximately 500 workers at the plant, are calling on the Italian government to ensure a reliable supply of hot rolled coil (HRC) so that production can restart. Currently, the facility is facing severe operational challenges, with production volumes plummeting due to temporary layoffs and a lack of necessary HRC feedstock.
The unions have indicated that Magona has placed an order for 110,000 metric tons of HRC from Acciaierie d’Italia, one of its conventional suppliers. However, only 53,000 metric tons have been delivered thus far, exacerbating the plant's struggles. Union representatives recently met with the Ministry of Enterprises and Made in Italy in Rome, emphasizing the urgency of negotiating a supply agreement with ADI to stabilize operations at the facility.
Amid these challenges, a positive development has emerged: sources familiar with the situation report that 16 organizations, including foreign investment funds and other steel companies, have expressed interest in acquiring the Magona plant. This interest could provide a lifeline to the facility, although the sale process is still in its preliminary stages. Binding offers are expected to be submitted starting in November, which raises hopes for a potential turnaround.
Liberty Steel is not only focused on Magona but is also looking to divest other facilities, including its plants in Liege, Belgium, and Dudelange, Luxembourg. In May, the company initiated a strategic assessment of its downstream steel operations in Western Europe, responding to interest from multiple parties. This assessment aims to either create long-term partnerships through HRC supply contracts or sell off these assets altogether.
The plants involved in this assessment boast a combined rolling capacity of over 2.5 million metric tons per year. The Liege and Dudelange facilities primarily produce galvanised HRC and also offer tinplate for packaging. Additionally, Dudelange is noted for being the only European producer of Aluzinc, a specialized material with various industrial applications. Meanwhile, Magona has a long-standing reputation for its pre-painted galvanized iron brand and enjoys advantageous port access at its location.
As the situation unfolds, the unions are urging the government to take immediate action to support the Magona plant and secure its future. The potential acquisition of the facility could be a game-changer, but without reliable HRC supplies and government intervention, the outlook remains uncertain. The ongoing negotiations and the interest from various stakeholders may offer hope, but the path forward will require collaboration between all parties involved to ensure the sustainability of Liberty Steel's operations in Italy.
