Stellantis to halt Italy's key Melfi plant next week due to chip shortage

MILAN (Reuters) - Carmaker Stellantis will again stop operations at its key Melfi plant in southern Italy next week, a union representative said on Wednesday, citing shortages of various parts, including semiconductors.

Marco Lomio, local head of UILM metalworkers union, said chip shortage was the main problem.

"Fortunately the plant has worked regularly all throughout May, but when chips are not shipped we simply cannot build cars," he said after a meeting between the company and local workers' representatives.

Stellantis confirmed the plant would stop operations between June 6-11 due to a chip shortage, a spokesman for the carmaker told Reuters.

UILM's Lomio said the new stoppage, which affects almost all of Melfi's more than 7,000 workers, adds to a holiday period already scheduled for most of Stellantis' operations in the country starting on Thursday with Italy's Republic Day, Lomio said.

"Basically the plant will stop operations on Thursday to reopen only on (Monday) June 13," he said.

(Reporting by Giulio Piovaccari; editing by Agnieszka Flak)