Ex-Ilva of Novi Ligure: the decline of the steel industry in the North-West
“The former Ilva of Novi Ligure, once the pride of the Italian steel industry, is inexorably on the verge of collapse”, says Moreno Vacchina, a company veteran who has been there since 1996. “We used to work for giants like Mercedes and Ford, but now we can’t even produce oil barrels.” La Stampa tells it. The mayor of Novi Ligure, Rocchino Muliere, remembers the days gone by when people queued to get a job at Ilva, considering it a guaranteed job for life. Today, unfortunately, we are witnessing an unstoppable escape from these factories. Marco Ginanneschi, who spent 33 years of service inside this gigantic factory, he says bitterly: “Now these factories have become shelters for elderly people like me, for people who have nowhere to go.”
The crisis is overwhelming the steel industry in Piedmont, causing widespread resignation. This situation involves three provinces: Alessandria, Cuneo and Vercelli, with Novi Ligure as the main epicenter and the satellites of Racconigi and Gattinara, as well as numerous small and medium-sized enterprises linked to related industries and services. In total, almost a thousand direct workers are affected, with a heavy impact on the supply chain in both regions. What makes this crisis particularly unusual is that the steel market is experiencing a period of growth, especially in times of war. Piedmont is known for its expertise in the steel industry, with modern factories and highly skilled workers. However, the origin and, perhaps, the end of this crisis lie in Taranto, the symbol of an environmental and industrial tragedy.
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For example, in Novi Ligure, it involves finishing raw steel from Puglia to produce plates mainly intended for the automotive industry. In the space of just over a year, the company has grown to 700 employees 590, with the majority of exits being voluntary resignations. There is no shortage of orders, but Taranto does not supply the necessary steel, leading to the loss of almost all customers. The agreements envisaged the processing of one and a half million tons of steel per year, but it is expected that 2023 will end at only 500 thousand tons.
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In Racconigi, in the Cuneo area, the number of employees dropped from 150 to just under a hundred. The factory produces pipes, but the lack of steel from Taranto it led to a significant loss of market share, and production slowed significantly. In addition to the factories directly involved, there is a vast related sector that has developed over the decades around Ilva. However, it now risks being overwhelmed by the crisis. In Gattinara, Vercelli, there is Sanac, a leader in the production of refractory materials, used to resist extreme temperatures. 80% of their orders came from Ilva, and now, with the factory in difficulty, production is drastically reduced. Supplies and maintenance were also disrupted, endangering worker safety.
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This crisis has caused a mass exodus among workers, who are looking for opportunities elsewhere, even if it means abandoning their specialization. Wages have fallen dramatically, with some people earning as little as a thousand euros a month. The mayor of Novi Ligure, Rocchino Muliere, is extremely concerned about the future of the factories and the community. He wonders whether Piedmont will be part of the national solution to relaunch the steel sector or whether it will be necessary to find an alternative way. The regional councilor for Labor, Elena Chiorino, underlined the importance of exploring alternative channels, but also confirmed that the government is working intensely to relaunch the sector at a national level. However, for many workers and affected communities, the future remains uncertain and worrying.
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