Italian manufacturers are facing production halts as surging energy costs make international competition unsustainable, prompting government officials to seek urgent solutions for the industrial sector.
Minister of Economy Giancarlo Giorgetti acknowledged the crisis, noting that current energy prices render the country’s manufacturing output uncompetitive, according to Il Sole 24 ORE.
The alarm was raised by the steel industry association Federacciai, which described the situation as "dramatic" and reported that member companies have already begun shutting down plants. "With these megawatt-hour prices, companies are forced to stop production," said the president of Federacciai, Antonio Gozzi. "With energy prices of this type, it becomes impossible to compete at an international level," Giorgetti told Il Sole 24 ORE.
The crisis has hit companies like the Bresciana-based ORI Martin, which halted production for an entire week and is now forced to pause operations during peak energy price hours, Roberto de Miranda told the Corriere della Sera. Founded by his great-grandfather, the company generates 700 million euros in turnover and employs 1,500 people.
De Miranda said that the company manages day-to-day operations, as the lack of consistent production makes it difficult to maintain standard employment costs without state support. He added that while the firm utilized the wage guarantee fund during its full-week stoppage, it must cover full salaries while idling during daily three-hour gaps.
Confindustria President Emanuele Orsini warned that natural gas prices could reach 110 euros per megawatt-hour in January, necessitating a potential return to the tax credit systems implemented in 2022. "The country needs a long-term industrial policy, a vision, a route," Orsini said, highlighting the need to decouple electricity prices from gas costs to protect domestic producers.
Urso proposed a "return to the future" through a diversified energy mix, specifically targeting the expansion of renewable sources, hydroelectric power, and nuclear energy to restore the production independence the country held 40 years ago. Emanuele Orsini, president of Confindustria, emphasized that energy costs represent the real challenge for the country, pointing to energy autonomy through renewables as a factor for competitiveness.
Federacciai Seeks Meetings with Unions to Address Industry Stability
Federacciai, an association affiliated with Confindustria, announced it will request a meeting in the coming days with labor unions Fiom, Fim, and Uilm. The goal is to address the sector’s difficulties and the potential impact on the national industry’s stability and competitiveness.
De Miranda emphasized that the industry requires further government intervention, noting that the "interconnector" support measure ends at the close of the year, while the "energy release" program, which expires at the end of 2027, needs to be strengthened.
As of November 11, 2026, companies continue to weigh the prospect of extending holiday-related production shutdowns through December if energy prices remain at levels such as the 280 euros per megawatt-hour recorded for the following day.
| Metric | Context |
|---|---|
| Projected Gas Price (Jan) | 110 euros per megawatt-hour |
| Daily Production Halt | Approximately 3 hours for some firms |
| Primary Competitive Threat | Chinese competition |
Why Italian Steel Companies Are Halting Production
Why are Italian steel companies halting production?
Companies are stopping or slowing production because high energy costs make their finished products too expensive to sell in a market already pressured by international competition. According to the Corriere della Sera, firms like ORI Martin are choosing to stop operations during high-price hours to manage unsustainable overheads.
What government support is currently under consideration? The government is discussing the potential reintroduction of tax credits for energy-intensive industries, similar to those used in 2022.
How does the pension proposal relate to the industrial crisis?
The government views pension flexibility at age 64 as a tool for "generational turnover," aiming to replace older workers with younger talent to encourage them to stay in Italy. Undersecretary Durigon emphasized that this is part of a broader effort to prevent younger people from going abroad.