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

18.03.2010, 20:08 25

The European Commission has given a second warning to Romania,after Kronospan Sebes's formaldehyde plant breached environmentalregulations. The commission warns Romania that if the company isnot penalised, the local authorities can be brought before theEuropean Court of Justice.

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

In 2007, Kronospan Sebes, part of Austrian-held Kronospan andone of the main players on the wood processing market, built aformaldehyde plant without prior authorisation and before assessingthe impact on the environment, with the investment amounting toaround 10 million euros.

Initially, the Romanian authorities issued a decision todemolish the plant, but later the decision was overturned by alocal court. The Sebes company therefore illegally built aninstallation, which is supposed to produce 60,000 tonnes offormaldehyde a year.

"The mere existence of legislation is never enough, it alsoneeds to be applied in practice. Romania needs to make sure that insuch cases assessments of the environmental impact are made, andthat any subsequent decisions are complied with," said JanezPotocnik, European Commissioner for Environment. The second warningis also the last before the case is brought before the EuropeanCourt of Justice. If the Court does not rule in favour of themember state, Romania in this case, this state will be subjected tofinancial penalties.

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