Italy hauliers strike shuts chemical plants

12 December 2007 15:14  [Source: ICIS news]

LONDON (ICIS news)--Mass action by Italian truck drivers caused widespread disruption to the country’s chemicals industry on Wednesday, with some producers forced to shut down completely due to a lack of raw materials supply.

 

Protesting against high fuel prices, workers have blocked highways across Italy bringing industry to a standstill in many areas.

 

The Italian Transport Ministry said it would issue €500 ($734) fines to truck drivers caught disrupting traffic after midnight, and €25,000 charges to companies directly involved in the action.

 

“We have shipments waiting to come and go and they are not moving. Everything in Italy is affected,” said an Italian di-ethylene glycol (DEG) consumer.

 

A spokeswoman from Caffaro, an Italian buyer of ethylene diamine (EDA), said the company was forced to close down its plants due to lack of raw materials.

 

The strikes started on Monday, and unions have threatened to carry out a five-day protest until 14 December, making it potentially the longest transport strike in Italy's history.

 

“We are not able to ship any material to the factory,” said Italy-based polycarbonate compounder Ravago ETP.

 

“The official story is that the strike will go on until Friday, but we can’t make up for lost production this week,” said product manager at Ravago Massimo Marziali.

 

“We will see if we can recover something next week (but) it may mean a 15-20% loss in December.”

 

Some chemical producers said the blockades had not impacted production yet but were concerned about supplies deteriorating if the strikes continued.

 

An Italian fibres producer which sources acetyls said it had not cut down production yet, despite delays getting some chemicals.

 

“In terms of getting the product to customers, there are real problems as the truck owners are blocking everything,” said a source from the company.

 

Truck drivers in the UK are planning to strike against high fuel prices, with action expected to start on Saturday.

 

Alex Martinos, Dan Horlock, Ed Cox, Peter Gerrard and Sofia Lind contributed to this article

ICIS Copyright © Reed Business Information 2009

Author: Mark Watts
+44 20 8652 3214

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