Court of Appeal

Former Ilva site: green light to shut down the hot zone. The judges: the right to health takes precedence over business activities

The magistrates have rejected the applications submitted by Ilva and Acciaierie d’Italia. The order already issued on 27 July remains in force, with a 90-day deadline, meaning the end of October

by Domenico Palmiotti

aggiornato alle 13.50 dell’11 settembre

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Foto d’archivio - Ciminiere dell’acciaieria ex Ilva di Taranto (Foto AP/Paola Barisani) AP

6' min read

Translated by AI
Versione italiana

6' min read

Translated by AI
Versione italiana

The Milan Court of Appeal’s ruling on the former Ilva plant in Taranto came earlier than expected. It had been expected at the start of next week but was instead served at 11.27 am on 11 September and is unfavourable to the company: the hot section will have to shut down by the end of October as the judges deemed it to be polluting and harmful to health. The applications for a stay of execution submitted by Ilva and Acciaierie d’Italia – the former being the owner and the latter the operator of the plants – and discussed at the hearing on 9 September have therefore been rejected. Although the composition of the panel was different, the Court of Appeal, presided over by Lorenzo Orsenigo, in a 12-page order, confirmed the ruling issued by the same Court on 27 July, when, having ordered the shutdown of the hot section, it had given Ilva and Acciaierie 90 days to comply. Those 90 days are due to expire at the end of October.

The judges: health must take precedence

The judges’ guiding principle is that the protection of health takes precedence over the economic, employment and production aspects of the former Ilva. ‘The balance between these conflicting interests can only lead to a decision in favour of health protection, on the basis of which the suspension of production activities in the hot area was ordered’ write the judges, who also refer to the ‘repeated, recent rulings of the Constitutional Court and the Court of Cassation, particularly following the recent amendment to Article 41(2) of the Constitution, according to which private economic activity may not be carried out ‘in such a way as to cause harm to health or the environment’ in the conflict between the right to conduct business and citizens’ right to health and to compliance with the permissible limits on emissions to which they are subject’.

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Reference to the 2024 judgment of the European Court of Justice

And even in the face of ‘the serious economic damage resulting from the disruption to the facilities, there arises – as the judges state – the need to safeguard the right to life and health – that is, values of paramount constitutional importance – in accordance with the terms deemed binding by the judgment of the CJEU’. On 24 June 2024, in fact, the European Court of Justice, ruling on the former Ilva case in response to proceedings referred by the Court of Milan – to which the citizens of Taranto had turned after bringing an injunction against the steelworks (Milan is the company’s registered office), stated that if an industrial plant is harmful to health and the environment, it must be shut down in accordance with the European directive.

The irreparable nature of the damage following the shutdown is being contested

With regard to the damage to the plant caused by the shutdown, the Court states that ‘the claim that the plant is beyond repair as a result of the suspension of production activities in the hot section has been contested by the citizens bringing the action, who, in their written submission, argued both that “the blast furnaces currently in operation are as old as 60 years and are constantly being patched up as best they can”, and that, according to the latest report from the regulatory authority ISPRA, it appears that, over the last few years, blast furnaces 1, 2 and 4 have been shut down on several occasions for upgrading work and then routinely restarted. To these considerations – the Court states – is added the observation made by the Public Prosecutor’s Office at the Milan Court of Appeal in its opinion, according to which the appellants’ assertion, whilst compelling, is not supported by any concrete evidence. The Public Prosecutor’s Office – the Court observes – also adds that the appellants (given the inescapable need to carry out work on the plant), have not provided any quantification, not even an approximate one, of the comparative costs of potentially bringing the facilities into line with the requirements imposed by the European Court of Justice as opposed to a complete overhaul’. In the judges’ view, the companies ‘merely assert that shutting down the plants would cause irreversible damage, but they do not demonstrate that the adaptation required by European legislation is a viable alternative, nor that it is economically sustainable’.

The magistrates: what is happening is not a sudden event

In any case, the Court argues, ‘regardless of any consideration as to whether the applicants are entitled to claim that the ancillary industries have suffered employment-related harm, it must also be borne in mind that for several years now there has been a debate, regarding the Ilva plant in Taranto, on how best to reconcile the right to health of citizens and the workers themselves with the protection of the jobs of staff involved in the steelworks’ operations; that the application for an injunction was brought by citizens as far back as 2021; that, in the light of European legislation and the judgment of the CJEU, the suspension of production activities in the hot section ordered by the decree does not appear to be a sudden event but, rather, a foreseeable event in respect of which the corporate responsibility of the parties involved must surely have been assessed over the years’.

The judges then point out the presence in the factory of over 2,000 kilograms of asbestos, albeit incorporated into the cowpers of the blast furnaces (which are used to heat the air required for the mineral smelting process), and state that ‘the operator’s statements regarding the absence of risk are not supported by documentation of the surveys carried out, which, moreover, are not even specifically mentioned in Ilva’s defence’. And therefore ‘it must not be overlooked that the Ilva plants and the production system – as described, amongst other things, in Ilva’s own expert report – have remained unchanged for decades, and this helps to confirm that the risk persists to this day due to the progressive deterioration of the plant’.

“Substantial investment will also be needed in the future”

Finally, there is a passage concerning financial resources. ‘It does not appear,’ the Court maintains, ‘that the shutdown of the plants could lead to the “dispersal” of the “enormous public resources invested over the years” in the Ilva plant in Taranto, given that these are resources which have already been repeatedly invested to ensure, on each occasion, the plants’ continued operation’. In the judges’ view, since ‘it is undisputed that the Taranto steelworks requires enormous investments, it is also evident, as pointed out by the Attorney General’s Office in its opinion, that in the future too ‘substantial investments will be required for the steel complex in question, which are linked to the plant itself, and that all potential buyers, including international ones, are already fully aware of this’.”

What might happen next in Taranto

Meanwhile, following the Court’s ruling in July, Acciaierie had already mapped out the steps required to bring operations to a halt by the end of October and planned for the resulting impact on its workforce. The Ministry of Labour is also reportedly preparing to tackle the issue, starting by securing the necessary resources. Acciaierie d’Italia currently has authorisation for the extraordinary redundancy fund for 4,500 employees (almost half the workforce), of whom 3,803 are in Taranto (again, almost half). These figures represent a maximum limit. In reality, actual take-up of the scheme is at lower levels. In Taranto, for example, the figure is reportedly around 3,000–3,100 employees. Now, with the hot end being shut down, these numbers are set to rise sharply. It is speculated that between 500 and 1,000 workers would remain at the Taranto plant to monitor the facilities – partly for safety reasons – but these figures were never discussed during the meetings held in recent days at Palazzo Chigi.

Trade unions: the Government must call us in immediately

“We believe it is essential that the Government responds to the demands set out in the extraordinary national plan for social security and the revitalisation of the former Ilva, and immediately convenes the permanent round-table at Palazzo Chigi,” state Fim, Fiom and Uilm. “Workers are demanding answers on the future of the former Ilva, and the manufacturing sector is waiting to find out the fate of steel production in our country,” say the trade unions. “We will not passively accept a plan that results in years of redundancy pay and redundancies that have already been announced. We must prevent a social crisis from erupting through both routine and extraordinary measures. We must protect the workers, who are the first victims of the decisions made by those who have held and continue to hold decision-making responsibilities. A freeze on redundancies must be implemented immediately,’ conclude the metalworkers’ unions.

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