CONFINDUSTRIA RENEWS SUPPORT FOR FIAT PLANT CLOSING

CONFINDUSTRIA RENEWS SUPPORT FOR FIAT PLANT CLOSING

(ANSA) - Rome, February 5 - Italy's powerful industrial employers association Confindustria has renewed it support for Fiat's decision to close its loss-making plant in Sicily, a move criticised by unions and some members of the government.

Fiat is meeting Friday at the industry ministry with union and government representatives on the company's restructuring plans, which as well as from closing Termini Imerese include downsizing personnel at a plant near Naples while boosting overall domestic production.

Confindustria chief Emma Marcegaglia said on Friday that "Termini Imerese is a plant which has had production, efficiency and logistical problems for a long time. The issue should not be forcing a company to keep a factory running but to find new jobs for the employees. Fiat is ready to do its part and this is the right path to follow".

In regard to possible government incentives to convince Fiat to keep the Sicilian plant open, the Confindustria head observed that "if factories are set up, even with strong subsidies, but have no market reason to exist, then no incentive will be able to keep them afloat".

Last week at the annual World Economic Forum in Davos, Switzerland, Marcegaglia said that ''if a factory cannot be competitive for economic and logistical reasons, the problem is not trying to keep it running but to redeploy the work force to reduce the risk of unemployment''.

''I believe that the whole country needs to have a less conservative approach. Change is necessary and keeping plants operating which cannot stand alone on the market is a cost for the company and for the nation as a whole,'' she added. photo: Emma Marcegaglia