10m-euro Kronospan plant can bring Romania before European Court of Justice

The European Commission has given a second warning to Romania, after Kronospan Sebes's formaldehyde plant breached environmental regulations. The commission warns Romania that if the company is not penalised, the local authorities can be brought before the European Court of Justice.

Formaldehyde is a gaseous compound used in the manufacture of resins, colorants, and drugs.

In 2007, Kronospan Sebes, part of Austrian-held Kronospan and one of the main players on the wood processing market, built a formaldehyde plant without prior authorisation and before assessing the impact on the environment, with the investment amounting to around 10 million euros.

Initially, the Romanian authorities issued a decision to demolish the plant, but later the decision was overturned by a local court. The Sebes company therefore illegally built an installation, which is supposed to produce 60,000 tonnes of formaldehyde a year.

"The mere existence of legislation is never enough, it also needs to be applied in practice. Romania needs to make sure that in such cases assessments of the environmental impact are made, and that any subsequent decisions are complied with," said Janez Potocnik, European Commissioner for Environment. The second warning is also the last before the case is brought before the European Court of Justice. If the Court does not rule in favour of the member state, Romania in this case, this state will be subjected to financial penalties.