Reuters reported that Italy is looking for new investors to take over an aluminium smelter in Sardinia, which US giant Alcoa plans to close, to soften the blow to the island's economy and save jobs.

Alcoa earlier this month said it would close the Portovesme smelter in Italy and slash output at two Spanish smelters as part of a broader effort to cut its global output by 12% and reduce costs.

Italy's industry ministry in a statement said that it was committed to finding sustainable solutions for the problem of high energy costs, which had been raised by Alcoa and which is one of the conditions for competitiveness of the site.

The minister said that "At the same time, the government and regional authorities are planning a series of meetings with investors who have expressed interest in the plant.”

The statement was released after a meeting between undersecretary Claudio De Vincenti, Sardinia's president Ugo Cappellacci and other senior officials from the island.

(Sourced from Reuters)