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Brussels, October 15, 2001 - - The challenges faced by the European chlorine sector - like many other parts of the chemical industry - in meeting the ever-increasing expectations of society whilst ensuring a sustainable future are similar to those of a "juggler keeping three balls airborne whilst balancing on a tug-of-war rope pulled by two teams in different directions" says Euro Chlor Executive Director Dr Barrie S Gilliatt.

In a mature sector underpinning 55-60% of European chemical industry turnover, chlor-alkali producers are juggling three key elements of sustainability - environmental husbandry, economic improvement and social responsibility. One important element of this is the need to meet business viability objectives whilst responding to medium-term aims that 55 mercury cell plants in 15 countries are closed or converted to alternative technologies at a capital cost of several billion Euros.

The Chlorine Review 2000-2001 just published by Euro Chlor reveals that the international competitiveness of the sector and the Single Market could both be impacted by the OSPAR ratification in April of the Paris Commission recommendation 11 years ago (PARCOM 90/3) to phase-out the use of mercury cells in the North Sea region by 2010. Euro Chlor had hoped that a later, but binding, date for conversion could be agreed with industry guarantees on total mercury emissions and procedures for safely disposing of residual mercury from closed plants.

Over the last 25 years, chlor-alkali producers have progressively phased out mercury units as they reach the end of their economic lives and environmental improvements have achieved a 96% reduction in mercury losses to the environment. Notwithstanding this, mercury technology is still used for 5 million tonnes of European capacity and many plants will not reach the end of their economic lives until some years after 2010.

Individual producers will now have to negotiate on a country-by-country basis with national governments, some of which have accepted that there is a case to allow some plants to continue beyond 2010. At this stage it is difficult to forecast with accuracy the full economic impact on companies and the economy, although a report commissioned by the German Federal Ministry of Economics and Technology revealed that a 2010 phase-out could cost Germany annual tax-related losses of EUR 2,800 million and about 8,700 jobs.

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