Reuters reported that hundreds of workers downed tools on Monday at Italy's largest stainless steel plant in Terni in opposition to a restructuring plan, under which about 550 jobs would be cut and production halved.

Italian union FIOM said the strike started on Monday and that more protests would take place until the government intervenes to mediate with management of the Acciai Speciali Terni plant, owned by German steel group ThyssenKrupp and push for a revision of the plan for the site in central Italy.

FIOM national secretary for the steel sector, Mr Rosario Rappa, said “The situation is more dramatic and uncertain than ever. Once again we are in a difficult situation. It's not a plan that guarantees a future for the plant."

ThyssenKrupp earlier this month presented the plan to cut about a fifth of the Terni staff and EUR 100 million in annual costs.

AST is one of the most modern stainless steel plants in Europe, yet has been posting losses for several years, which ThyssenKrupp blames mostly on the poor state of the market and structural oversupply. Failure to meet the cost-saving target would result in the closure in 2016 of one of the two furnaces at the site, each of which produces up to 600,000 tonnes of stainless steel a year.

ThyssenKrupp had to take back Terni from Outokumpu earlier this year as the Finnish company struggled to refinance.