Alcoa Ordered To Repay Italian Electricity Subsidies

Law360, New York (November 19, 2009, 5:03 PM EST) -- Alcoa Inc. has put smelting operations at two Italian aluminum plants on hold following a European Commission ruling that preferential electricity tariffs the company has received from Italy since 2006 violate European Union state aid rules and must be reimbursed.

Without the tariffs, which were initially negotiated for 10 years beginning in 1995, when Alcoa bought the plants, the two smelters will not be viable, Alcoa said in a statement Thursday.

The commission launched its investigation into the arrangement in 2006, when Italy granted a five-year...
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