Auto parts maker Marelli has paused the process of closing its Crevalcore plant in Italy, saying on Tuesday it had mandated an adviser to seek potential buyers for the site, which employs around 230 people.
Owned by private equity firm KKR, Marelli announced last month its intention to close down the facility, which produces components for internal combustion engines, arguing the business had become unsustainable due to the transition to electric mobility.
The planned closure had intensified fears that the switch to electric cars could have a significant impact on the thousands of jobs in Italy’s automotive supply sector.
Marelli has agreed “to find a solution that will ensure the industrial and employment continuity of the Crevalcore site,” it said in a statement after a meeting with Italy’s industry and labour ministries, trade unions and a representative for the Emilia Romagna region, which hosts the plant.
Marelli did not withdraw its plan to end operations at the Crevalcore facility but the decision announced on Tuesday gives parties involved more time to avoid its closure, which had been expected to happen around the end of this year.
The adviser picked by Marelli, which was not identified, will have to find potential bidders to help “re-industrialise” the site.
“We wanted a complete and full withdrawal of the closure procedure,” Gianluca Ficco of the UILM union said, adding the temporary suspension however at least allows unions “to start a discussion”.
Ficco said unions would continue to try to convince Marelli to invest to convert Crevalcore’s production and that they would only accept a third party buyer for the site if it was a strong and credible group.
All parties involved in talks will meet again on Nov. 8.
