Reuters reported that Italy's government, trade unions and managers of Alcoa Inc met briefly to discuss the fate of 2 Alcoa plants in Italy and promised to convene again on February 22nd 2010.

Alcoa said that last week it was willing to continue to discuss ways to resolve energy costs at its aluminum smelters in Italy and pulled back from an earlier announcement that it would idle its 2 plants there on February 6th 2010.

Mr Claudio Scajola industry minister of Italy, who is trying to avoid the shutdowns at the Fusina smelter near Venice and Portovesme plant in Sardinia, said that he appreciated the responsibility shown by the US aluminum giant and by trade unions.

He said that the delay to February 22nd 2010 allows us to continue to work constructively with the European Commission and look for ways to find a stable solution.

In November, Alcoa said that it would temporarily idle operations at its 194,000 tonne per year smelters after the European Commission ordered it to pay back most of the state aid it received in Italy since 2006. The European Union executive body ruled that Alcoa must repay state power subsidies previously agreed to by the Italian government and the US aluminium producer.

Alcoa argues that USD 300 million penalties imposed by the Commission, currently under appeal, would have a devastating impact given the dramatic decline in aluminum prices amid the global recession.

Mr Silvio Berlusconi PM of Italy, who is battling to control rising unemployment and faces important regional elections in March, wrote a letter to Mr Klaus Kleinfeld CEO of Alcoa this month, asking him to wait until the European Commission studies the situation before shutting the smelters.

(Sourced from Reuters)