Charleroi Threatens Expropriation of Riva Steel Site

The city of Charleroi has threatened to launch expropriation proceedings against the Italian Riva Group, owner of the Thy-Marcinelle steelworks, in a dramatic bid to secure the industrial site’s future. Mayor Thomas Dermine announced on Wednesday, June 24, that the city is prepared to use recent Council of State jurisprudence allowing expropriation for employment preservation or regional economic interest.

The move comes as the Thy-Marcinelle plant remains at a standstill, with its hot phase undergoing restructuring and a strike that has entered its 26th day. The site, which employs approximately 445 to 500 workers, has been struggling under the weight of Asian competition and a slowdown in the construction sector.

Strategic Context and the NLMK Connection

The expropriation threat is not an isolated action but part of a broader strategy that has been studied for months in Walloon circles. According to RTBF, the plan involves purchasing and transforming the Thy-Marcinelle steelworks into a supply tool for the NLMK rolling mill in La Louvière.

The urgency is driven by a critical EU sanctions deadline: by 2028, NLMK Europe’s facilities — co-owned by the Russian steel company NLMK and the Walloon Region via Sogepa — will no longer be able to import Russian steel slabs. Two scenarios were studied: building a new electric steelworks in La Louvière at a cost of approximately €1.2 billion, or converting Thy-Marcinelle after acquisition.

Mayor Dermine stated that the Thy-Marcinelle conversion scenario is “two to three times cheaper” and has a timeline better aligned with the end of Russian slab supply. “This second scenario is two to three times cheaper and has a timeline better suited to the end of Russian slab supply,” Dermine told RTBF.

A Site with Deep Industrial Roots

The Thy-Marcinelle steelworks has a history dating back to 1763, when the Thy-le-Château forge was first established. The site was acquired by the Italian Riva Group in 1989 from Cockerill-Sambre, and today produces wire rod, rebar, and other steel products with an annual capacity of approximately 800,000 tonnes. Its products are certified across multiple European countries and exported globally.

However, the plant has been in decline. In February 2025, Riva obtained a “grande suspension” regime for one year, allowing 18 weeks of unemployment followed by one week of work. Then, on January 16, 2026, the group announced its intention to lay off 180 workers from the hot phase, as L’Avenir reported.

Political and Union Reactions

Mayor Dermine has called on Walloon Employment Minister Pierre-Yves Jeholet to take leadership on the file. On Thursday, June 25, a delegation of Thy-Marcinelle workers was received by Walloon Minister-President Adrien Dolimont in Namur, as unions push for a viable solution.

Salvatore Panarisi, political secretary of the FGTB Metal Hainaut-Namur union, said: “We’re trying to put pressure wherever we can, both regarding the social plan awaiting workers and regarding the site’s future.” The unions had previously met with Charleroi Métropole representatives on June 17, where three key points were discussed: the future of steel activities in Charleroi, a request for an urgent meeting with the Walloon government, and contact with the Riva family to resume negotiations, as La Libre reported.

Broader Implications for European Steel

The situation at Thy-Marcinelle reflects broader challenges facing the European steel industry: Asian competition, overcapacity, EU environmental regulations, and geopolitical disruptions stemming from the Russia-Ukraine war. The NLMK connection adds a particularly complex dimension, as EU sanctions on Russian steel imports are simultaneously threatening jobs and creating an opportunity for restructuring.

The Thy-Marcinelle site’s conversion could potentially align with the trend toward greener steel production through electric arc furnaces, offering an environmentally sustainable path forward. However, significant questions remain about whether the conversion can be completed before the 2028 deadline and how EU competition and state aid rules would apply to a municipal expropriation.

What to Watch For

The coming weeks will be critical. The Walloon government must decide whether to support the expropriation or pursue alternative solutions. The Riva Group’s response to the threat remains uncertain, and the terms of the social plan for affected workers have yet to be finalized. For the hundreds of families in the Charleroi region whose livelihoods depend on the site, the stakes could not be higher.