Seven companies are to take over Fiat’s Termini Imerese plant with the help of a EUR450m (US$606m) deal from the Italian and Sicilian governments that could provide up to 3,300 jobs.
Fiat intends to close its Sicilian plant by the end of this year, but an agreement signed today (16 February) in Rome will see the seven operations – including two automotive firms – set up on the island within three years.
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“It is all Italian money, we did not ask the European Union,” an economic development ministry spokeswoman in Rome told just-auto.
“It is very good news for Sicily – it means from now until 36 months [time] – the maximum is 36 months – everything should be done.”
Two car manufacturers have tendered to be at the Termini Imerese plant, namely luxury car maker Rossignorlo and electric vehicle producer Cimino although their timetable to move has not yet been established.
The Economics Ministry will contribute EUR100m, while EUR350m will be stumped up by the Sicilian government, broken down into EUR150m for infrastructure work and EUR200m for industrial investment.
Tax credits will also be available to help recruit new workers while an apparent EUR600m should be attracted from the private sector although the ministry does not specify from where this significant sum would originate.
“A new era has started today for Termini Imerese,” said Economic Development Minister Paolo Romani in a translation provided to just-auto by his spokeswoman. “At the beginning we had a big problem and we worked very hard to have the necessary conditions to improve production in south Italy.
“In this way you can protect 1,500 employees, aiming to create more than 3,300 jobs once fully operational. It is an important sign of the vitality of the Italian economy and the ability of the Berlusconi government.
“Now it is important everybody – government, workers and unions put all [their] best to help the agreement to start as soon as possible.”
Fiat’s FIOM union said it would “suspend judgement” on the plan until it had time to digest the agreement.
