Stellantis to start conversion of Italian plant to gigafactory in 2024

MILAN -- Stellantis plans to start the conversion of its engine and gearboxes plant in Termoli, Italy, into the group's third battery factory in Europe in 2024, Italian unions said.

The transition will lead to temporary layoffs at the southern Italy factory, with an expected peak in 2025 involving about 1,000 workers, while the facility's whole workforce, around 2,000 people, is expected to be again fully employed by 2030, when operations at the new gigafactory are expected to run at full capacity, the unions said Monday evening after meeting with Stellantis executives.

As part of its electrification plans, Stellantis will build three battery gigafactories in Europe, in France, Germany and Italy, though its ACC joint venture with Mercedes-Benz and TotalEnergies, for a total capacity of at least 120 gigawatt hours (GWh) by 2030.

Two more battery plants will be built in North America with partners LG Energy Solution and Samsung SDI.

Stellantis will phase out current productions at Termoli from the beginning of 2024, while initial operations of the new gigafactory should start in 2026, Italy's main metal-mechanic unions said in a joint statement.

Gianluca Ficco of UILM said Stellantis had reassured unions that all of Termoli's workers will be employed in the new gigafactory.

"This is good but not enough. Clearly we want a formal and binding commitment by ACC," he said. "Then we will have to sort out how to manage temporary layoffs."

A spokesman for Stellantis told Reuters that the company gave unions an update about development plans for the Termoli site, during an interlocutory meeting.

Unions added that production of some "premium" internal combustion engines would continue "for some years" beyond 2026.

As part of the retraining program for employees, the group will offer them the possibility to work for up to six months in the its French gigafactory in Douvrin, unions said.

The Douvrin plant is set to start production next year. It is expected to provide 1,400 to 2,000 direct jobs, ACC said in documents filed with the government review process. An additional 350 to 400 jobs will be created during the 18-month construction process.

An existing internal combustion engine factory in Douvrin, inaugurated in 1969, has about 1,500 full-time employees. It builds gasoline and diesel engines for Peugeot, Citroen, Opel/Vauxhall and DS. 

Reuters contributed to this report