Italy’s foundry industry has warned that the sector is close to a production shutdown due to rising costs and regulatory pressure. During a meeting with the Minister of Enterprise and Made in Italy Adolfo Urso, industry association Assofond said energy-intensive producers are facing severe operational difficulties. 

The Carbon Border Adjustment Mechanism (CBAM), originally designed to prevent carbon leakage, is now putting European foundries at a disadvantage. European producers must import raw materials such as pig iron, raw aluminium, and ferroalloys, and pay carbon taxes of up to 35%, while some non-EU competitors can source cheaper materials without similar duties. 

As a result, European foundries are losing competitiveness in both domestic and export markets. Industry leaders said low margins, high energy costs, and weak demand are pushing the sector into a period of extreme fragility.

Fabio Zanardi, President of Assofond, said the government must seek two urgent European measures to stop deindustrialization. He proposed extending the transition period through 2027 to stabilize prices and prevent production halts. Besides, he requested expanding the CBAM to include the downstream customs codes they have identified. Zanardi warned that the current system risks destroying European industry while benefiting more polluting non-EU competitors.