Italy: Italian cement producer Italcementi plans to stop production at three of its Italian cement plants, bringing the total of its dormant plants in the country to nine. Italcementi director general Giovanni Battista Ferrario made the announcement at a shareholders' meeting, blaming the move on overcapacity in the face of a huge slump in domestic demand
The company expects to save Euro110m through the closures as part of an efficiency drive. It posted losses of Euro362m in 2012, most of it due to poor Italian demand. Lay-offs for over a quarter of Italian staff were announced in December 2012. It said the Italian market "continues to be marked by productive over-capacity compared to a demand that has dropped to the levels last seen at the end of the 1970s."
Italcementi had 17 operational plants in 2012. It has since then sold one and halted production at five others. However, CEO Carlo Pesenti told the meeting that the company plans to invest up to Euro150m on upgrades at its Rezzato plant and has plans to develop its Calusco plant.
