Berlusconi asks Alcoa chief not to shut plants in Italy

MILAN — Italian Prime Minister Silvio Berlusconi on Friday asked the head of US aluminium giant Alcoa not to close its factories in Italy.

Berlusconi, "in a letter Klaus Kleinfeld... asked the multi-national to keep its productive activity in Italian factories and not take a decision on the matter" before the European Commission evaluates government measures to lower energy costs, the prime minister's office said in a statement.

The assessment will take place in February, it said.

"Berlusconi reminded Kleinfeld that a decision by Alcoa to do otherwise would spark a serious social crisis in disadvantaged parts of the country and could affect relations between the Italian government" and Alcoa, it said.

Berlusconi's letter came as some 300 Alcoa employees forced the closure of the airport at the Sardinian capital Cagliari by occupying it.

Late last year, EU regulators ordered Alcoa to repay Italy for state aid worth between 300 million and 400 million dollars (215 million to 290 million euros) received since 2006 in the form of subsidised electricity prices for two smelters.

It said Tuesday that it planned to "temporarily" shut down the plants in Portovesme, Sardinia, and Fusina in the northeast, but a spokesman said there was "no hope" that Fusina would reopen.

Alcoa directly employs around 600 workers at Portovesme and 140 at Fusina.

Another 1,000 people work as sub-contractors at the two sites.