Italian steelmaker Acciaierie d’Italia, ADI, has suffered another legal setback in its efforts to prevent the shutdown of the hot-end section of its steel plant.
Milan’s Court of Appeal has rejected the company’s second request to temporarily suspend a court order issued in July. The earlier ruling gave ADI 90 days to shut down the plant’s hot-end facilities, according to Argus.
ADI had already filed an earlier appeal seeking to delay the shutdown, but that request was also rejected.
Warns of costly restart
In its latest appeal, ADI argued that a complete shutdown could cause irreversible damage to the facilities and make any future restart significantly more difficult.
The company referred to a technical assessment estimating that restoring the hot-end after a shutdown could cost around EUR 830 million.
ADI therefore proposed keeping the installations in a pre-heating mode rather than switching them off completely.
The court rejected the argument, ruling that the potential economic and industrial damage was secondary to citizens’ right to health.
According to court documents, the suspension of production at the hot-end had already begun by late September. ADI said, however, that the irreversible deterioration it had warned about had not yet occurred.
Further legal ruling expected
The next important date is 20 October, when Italy’s Court of Cassation is due to consider another legal challenge filed by ADI.
The outcome could have major implications for the future operation of the plant and for Italy’s domestic steel production.
Source: Argus.
