Arbitration tribunal compensates Solvay in connection with Edison environmental dispute
14 Feb 2023 --- Solvay has been compensated to the tune of €91.632 million (US$98.5 million) following a long-running disagreement. Edison, the former owner of Solvay’s Spinetta Marengo and Bussi sul Tirino sites, compensates Solvay for breaching environmental representations and warranties relating to its sale to Solvay in 2002.
Solvay received the compensation after decisions by the International Chamber of Commerce’s arbitration tribunal, the Swiss Supreme Court, and the Milan Court of Appeal, all of which ruled in favor of Solvay.
The outcome follows more than a decade of legal proceedings in relation to Solvay’s claims of environmental breaches by Edison, a subsidiary of EDF, in the context of Solvay’s acquisition of the Italian company Ausimont more than 20 years ago.
The compensation relates to costs, losses and damages suffered by Solvay up to the end of 2016.
Additional arbitration procedures are currently ongoing regarding costs, losses and damages suffered by Solvay from January 2017 onwards.
Solvay says that it is confident in the merits of its claim for additional significant compensation for damage in this second phase and expects proceedings to conclude next year.
“Solvay acquired the Spinetta site based on representations that failed to disclose material environmental lapses. Upon discovering important deficiencies, Solvay initiated proceedings against Edison and mobilized significant technical and financial resources to undertake important remedial actions,” says Marco Martinelli, country manager Italy and industrial director for the group.
“Our actions resulted in a significant improvement in air and water quality, inside and outside the industrial site.”
“At Solvay, we constantly strive to go above and beyond regulations with respect to health, safety and the environment, and we will not hesitate to act responsibly,” adds Augusto Di Donfrancesco, member of Solvay’s executive leadership team.
In recent years, we invested heavily in optimizing and modernizing our plants to meet the standards we set ourselves. Our sustainability priorities are guided by Solvay One Planet, with ambitious targets to drive progress across climate, resources and a better life.”
Edited by Gaynor Selby
