MILAN — Marelli will shut certainly one of its Italian crops producing parts for inner combustion engines, because the enterprise had change into “unsustainable” as a result of transition to electrical mobility.

The plant, positioned within the city of Crevalcore within the northern area of Emilia Romagna, at present employs round 230 folks. It manufactures plastic parts and processes aluminum parts for ICEs.

“Electrification claims its first victims in Italy,” stated a union consultant who participated in talks with the corporate.

Marelli stated in a press release its determination was attributable to “the dearth of recent enterprise as a result of discount of investments by automotive gamers in inner combustion engines,” in addition to rising costs for uncooked supplies and vitality.

It stated volumes and revenues on the Crevalcore facility would have dropped additional in coming years, bringing its anticipated charge of capability utilization to not more than 30 p.c.

Marelli stated it deliberate to maneuver Crevalcore’s plastic part manufacturing to a different plant in Italy whereas aluminum manufacturing can be externalized.

The unions, which met the corporate on Tuesday, stated in a separate assertion that many extra closures would observe if the Italian authorities didn’t help a immediate transformation of crops nonetheless linked to ICE know-how.

Marelli, owned by non-public fairness agency KKR, was created in 2019 after Fiat Chrysler, now a part of Stellantis, offered its automotive components unit Magneti Marelli.

The corporate stated it was working with unions and establishments to attenuate the impression for affected employees.