Financing for the production of electrical steel and two cold rolling lines planned at the Arvedi Acciai Speciali Terni (AST) and Callanish plants is still suspended, according to a trade union source.
Earlier this week, the stainless steel manufacturer held a meeting with union representatives to review its industrial strategy for the period from 2022 to 2028. The unions note that the company has retained all of its investments for this period, with the exception of delays related to two cold rolling lines and the production of electrical steel, despite the "extremely difficult macroeconomic and geopolitical context," the union said in a note.
Industrially, the focus is on strengthening the hot shop, as well as expanding the range of cold-processing products.
The initially planned investment of 1 billion euros ($1.1 billion) includes, among other things, the construction of a new rolling mill and a new etching, rolling and annealing line, as well as two electrical steel production lines that are currently not operational.
The trade unions insist that the government speed up the signing of a program agreement that would facilitate the early resumption of the company's work. AST is negotiating with the authorities to finalize the agreement.
In January, the company, the authorities and the trade unions set a timetable for resolving technical issues related to energy supply. It also aims to identify the resources that will be allocated by the Ministry of Environment and Energy Security, the Ministry of Enterprises and Made in Italy for the implementation of the industrial plan.
Since the acquisition of AST, Arvedi has invested 325 million euros in AST. The company will start operating in 2022, and this year an additional 232 million euros will be allocated to various segments of the Terni factory. Of the investments already allocated, 160 million euros were allocated for equipment and modernization, which are currently in operation while work continues, and the remaining amount will amount to 165 million euros.
In a previous letter to employees, Giovanni Arvedi, founder and President of Arvedi, confirmed that the industrial plan of the plant for the production of electrical steel provides for significant costs of 411 million euros (see Kallanish passim).
Natalia Capra France
kallanish.com
