Italy court orders retrial in deadly pollution case linked to ex-Ilva steelworks

ROME (Reuters) - An Italian appeals court overturned a 2021 ruling convicting 37 people and three firms for deadly pollution linked to the former Ilva steelworks on Friday and ordered a retrial, ANSA news agency said.

The ex-Ilva site, once the largest steel producer in Europe, has for more than 10 years been embroiled in legal proceedings over allegations that its toxic emissions have caused a surge in cancer cases in the city of Taranto.

Friday's ruling is a major blow for the prosecution and plaintiffs in the case, as starting a first-instance trial from scratch increases the likelihood at least some charges may be dropped due to the statute of limitations.

The appeals court accepted defence arguments that the trial needed to move to another city as judges and jury members based in Taranto could not be impartial as they were also "offended parties" in the alleged environmental disaster, ANSA said.

Among those convicted three years ago were former Ilva owners, brothers Fabio and Nicola Riva, sentenced respectively to 22 and 20 years in prison, and the former head of the Puglia region, Nichi Vendola, who was given a 3-1/2 year sentence.

The fate of Acciaierie d'Italia (ADI), as Ilva is now known, is a major headache for Italian Prime Minister Giorgia Meloni, as her government is seeking an industrial partner to revamp the group.

Six international and domestic players, including India's Vulcan Green Steel and Ukraine's Metinvest, expressed a preliminary interest in taking over the steelworks, which are now in government-controlled special administration.

(Reporting by Giuseppe Fonte, editing by Alvise Armellini and Hugh Lawson)