Marelli Pauses Closure of Crevalcore Plant, Seeks Potential Buyers

Auto parts maker Marelli has decided to pause the process of closing its Crevalcore plant in Italy, as it seeks potential buyers for the facility. The company, owned by private equity firm KKR, had previously announced its intention to shut down the plant due to the challenges posed by the transition to electric mobility.

The Crevalcore plant, which employs around 230 people, produces components for internal combustion engines. The planned closure had raised concerns about the potential impact on jobs in Italy’s automotive supply sector.

However, after a meeting with Italy’s industry and labour ministries, trade unions, and representatives from the Emilia Romagna region, Marelli has agreed to explore alternative solutions that would ensure the industrial and employment continuity of the site.

While the closure plan has not been withdrawn, the decision to seek potential buyers gives all parties involved more time to find a solution and avoid the plant’s closure, which was originally expected to occur by the end of this year.

Marelli has appointed an advisor to identify potential bidders who can contribute to the “re-industrialization” of the Crevalcore site. The unions, on the other hand, will continue their efforts to persuade Marelli to invest in converting the plant’s production to align with the shift towards electric vehicles.

The unions have also emphasized that they will only accept a third-party buyer if it is a strong and credible group. Further discussions between all parties are scheduled to take place on November 8.

The temporary suspension of the closure procedure provides an opportunity for meaningful dialogue and exploration of viable alternatives. The aim is to find a solution that balances the company’s needs with the preservation of jobs and the region’s economic stability.

Marelli’s decision to seek potential buyers for the Crevalcore plant demonstrates its commitment to finding a sustainable path forward amidst the challenges posed by the transition to electric mobility.