EUKN - European Urban Knowledge Network - Economic conversion in the Milan suburbs

Economic conversion in the Milan suburbs – Milan, IT

Introduction

The Agenzia di Sviluppo Nord Milano (ASNM), the development agency of north Milan, successfully converted declining industrial steel sites into a sustainable business park.

Problem

Sesto San Giovanni comprises several suburbs of the city of Milan. Since the 1950s, it was distinctive for its major steel mills and chemical plants (Breda, Falck, Marelli). However, under the combined effect of a shrinking world market and increased competition, Sesto San Giovanni’s steelmaking industry was plunged into a crisis. The highly urban nature of these suburbs, the absence of green areas and pollution problems all then contributed to their progressive decline, a trend that culminated in the mid-1990s.

Description

In cooperation with the Sesto San Giovanni municipality and the province of Milan, the ASNM implemented an economic conversion plan for the declining steel mills in Sesto San Giovanni. The objective was twofold:

to convert the Falck and Breda industrial steel sites in a sustainable way;
to provide local companies with a range of services of a nature to improve the technological level and the quality of local processes and products.

The four key words of the project were internationalisation, financial engineering, tutoring and entrepreneurship.

Approach

The project included the following initiatives:

With EU support, a European Business and Innovation Centre, known as “La Fucina” (The Forge) was created. Its mission is to support local businesses, whether new or long-established.
Many training and support initiatives were launched to help companies and their employees adapt to the changes. These included “skills assessment” for workers and assistance in drawing up business plans for companies.
Several teleservices and teleworking centres were also set up and a “sustainable urban park” was developed on the basis of the winning entry in a competition for ideas.
A key role was also played by the creation of a network of “Business Angels”, private investors participating in the capital of companies at the start-up and growth stage.

Results

The redevelopment and conversion of the industrial sites has attracted 71 new start ups and approximately 78 SMEs and artisan's workshops. By December 2004, these new businesses had generated 1,671 new jobs. The total level of employment generated by the building sites and conversion projects is estimated at 2,000 man per year.

EU involvement

The total cost of the project was 12.1 million euros. The European Community Initiative programme Italia Resider II provided 6.1 million euros.

Contact info

ASNM
Phone: +39 2 24126540
info@milanomet.it

Project start date

01/01/1994

Links

ASNM City of Milan (in Italian)

Document type

case

Themes

Urban Policy > Economy knowledge & employment > Urban economy

Keywords

Business support, Specific sectors