ROME, March 17 (Reuters) - Italy's parliament approved on Wednesday a power decree offering favourable conditions to some industrial consumers aimed to convince U.S. aluminium producer Alcoa Inc to keep its Italian plants working.
In November, Alcoa said it would temporarily idle its 194,000-tonne-per-year smelters at Portovesme in Sardinia and Fusina near Venice after the European Commission ordered it to pay back most of the state aid it had received in Italy since 2006. Alcoa has complained about high power prices in Italy.
Under the new decree, power lines connecting mainland Italy with islands of Sardinia and Sicily would be upgraded and industrial consumers would get discounts on power supplies if they agree to be subject to temporary interruption of supplies.
Alcoa agreed in February to keep its Italian plants, which employ about 2,000 people, working for six months.
Alcoa, the government and other parties involved are expected to meet in April to evaluate the situation.
Alcoa argues that a $300 million penalty imposed by the EU Commission, currently under appeal, would have a 'devastating impact', given the dramatic decline in aluminium prices amid the global recession.
(Writing by Svetlana Kovalyova; editing by James Jukwey) Keywords: ALCOA ITALY/ (svetlana.kovalyova@thomsonreuters.com; +39 02 661 29450; Reuters Messaging: svetlana.kovalyova.thomsonreuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
In November, Alcoa said it would temporarily idle its 194,000-tonne-per-year smelters at Portovesme in Sardinia and Fusina near Venice after the European Commission ordered it to pay back most of the state aid it had received in Italy since 2006. Alcoa has complained about high power prices in Italy.
Under the new decree, power lines connecting mainland Italy with islands of Sardinia and Sicily would be upgraded and industrial consumers would get discounts on power supplies if they agree to be subject to temporary interruption of supplies.
Alcoa agreed in February to keep its Italian plants, which employ about 2,000 people, working for six months.
Alcoa, the government and other parties involved are expected to meet in April to evaluate the situation.
Alcoa argues that a $300 million penalty imposed by the EU Commission, currently under appeal, would have a 'devastating impact', given the dramatic decline in aluminium prices amid the global recession.
(Writing by Svetlana Kovalyova; editing by James Jukwey) Keywords: ALCOA ITALY/ (svetlana.kovalyova@thomsonreuters.com; +39 02 661 29450; Reuters Messaging: svetlana.kovalyova.thomsonreuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.