Brussels, 18/03/2005 (Agence Europe) - The European Commission has authorised, under EU state aid rules, subsidies to two chlorine producers in Italy to set up new plants allowing for mercury-free chlorine production. Solvay Rosignano is due to receive €13.5 million aid to promote a €48 million investment, and Altair Chimica is due to receive about €5 million for a planned €13.5 million investment. The companies will end production based on mercury technology and introduce so-called membrane technology for which no mercury is needed. The Commission concluded that the aid was not likely to cause undue distortion of competition within the Single Market and was therefore compatible with EC Treaty state aid rules. The €13.5 million aid for Solvay Rosignano, to promote a €48 million investment, and about €5 million for Altair Chimica, which plans a €13.5 million investment, represent 30% of the eligible investment cost, plus an additional 10% of the eligible cost in the case of Altair as it is a medium-sized enterprise. The beneficiaries will set up new plants not exceeding their respective current capacities and clean up the old installations. As a result, no mercury will be emitted into the air or water as from 2007. The de-commissioning of the old plants will eliminate the risk of mercury leaking from the old installations, which contain a total of 270 tons of mercury for both companies. The new technology will also lead to other environmental benefits, such as substantial energy savings. The approval was made subject to a commitment by the Italian authorities to carefully monitor the de-commissioning of the old plants and to report to the Commission regularly. If the cleaning up is not performed in full compliance with the environmental rules, Italy might be requested to recover the aid.