Riva Group, Italy's largest steelmaker, will close a coil production line indefinitely at its Ilva plant in Taranto, Italy, due to flagging European steel demand, Reuters reports.
"There will be a halt at the coil rolling line number 1 in Taranto in the next few days but there will not be any compulsory redundancies," said Alberto Cattaneo, a spokesman for the steelmaker. "This is due to worsening market conditions."
Until now Riva Group, the third largest European steelmaker, had been working at about 75% of its total capacity, a similar level to 2010, when it produced about 14Mt of steel.
High volumes of steel came out of Europe in the first half of the year, but weaker demand, low prices and destocking have hit sales, leading Riva Group and other European producers to cut capacity.
The world's largest steel producer, ArcelorMittal , closed a blast furnace at one of its Polish plants last week, the latest in a series of cutbacks to the steel giant's European operations.