The “Economic Miracle†and Italy’s Chemical Industry, 1950-1965: A Missed Opportunity

The chemical industry was a leading sector in Italy’s “economic miracle,†but after remarkable growth in the 1950s, it declined in the next decade. Montecatini rose to a dominant position in inorganic chemicals and fertilizers in the 1950s, but its quasi-monopoly of traditional chemicals was soon challenged, first by the state-owned Eni and then by Edison, one of Italy’s giant electric power companies, which was diversifying into new sectors. The “chemical wars†of the late 1950s and early 1960s pitted the three companies against one another, as they competed for state support by building plants in Italy’s underdeveloped south, often with little commercial rationale. Although the “war†was finally resolved by a merger of Montecatini and Edison, the new company failed to achieve internal rationalization or to develop advanced chemical products. By the 1970s the sector was in disarray, and the opportunities of Italy’s rapid postwar development in chemicals had been squandered.