Connect with us

Hungary

Commission approves close to €72 million Hungarian state aid measure to support new tyre manufacturing line

SHARE:

Published

1 week ago

on

We use your sign-up to provide content in ways you've consented to and to improve our understanding of you. You can unsubscribe at any time.

The European Commission has approved, under EU state aid rules, a €71.6 million (HUF 28 billion) Hungarian measure in favour of Hankook Tire & Technology Co. Ltd.

The measure will support Hankook in setting up a truck and bus radial tyre factory in the Central Transdanubia region, Hungary. This project has a total budget of €538 million. With the investment, the company will diversify its existing plant in Fejér County, which so far only produces tyres for passenger cars and light trucks. The measure will take the form of a direct grant and is expected to contribute to the economic development of the region by creating 469 jobs, mainly in manufacturing.

The Commission assessed the Hungarian measure under EU state aid rules, in particular Article 107(3)(a) of the Treaty on the Functioning of the EU, which enables member states to grant aid to promote the economic development of the most disadvantaged areas in Europe, and the Regional Aid Guidelines. The Commission found that the measure is necessary and appropriate to contribute towards the economic development, competitiveness and increase of employment rate of the region. Furthermore, the aid has an incentive effect, as the beneficiary would not have carried out the project in the European Economic Area without the public support. Finally, the Commission found that the measure is proportionate as it is limited to the minimum necessary to trigger the investment in Hungary. In particular, the support will not exceed the maximum amount of aid calculated on the basis of the aid intensity set out in the Hungarian regional aid map, and has a limited impact on competition and trade within the EU. On this basis, the Commission approved the Hungarian measure under EU State aid rules.

The non-confidential version of the decision will be made available under the case number SA.116666 in the state aid register on the Commission's competition website once any confidentiality issues have been resolved.

Share this article:

Share this:
Related Topics:
EU Reporter publishes articles from a variety of outside sources which express a wide range of viewpoints. The positions taken in these articles are not necessarily those of EU Reporter. Please see EU Reporter’s full Terms and Conditions of publication for more information EU Reporter embraces artificial intelligence as a tool to enhance journalistic quality, efficiency, and accessibility, while maintaining strict human editorial oversight, ethical standards, and transparency in all AI-assisted content. Please see EU Reporter’s full A.I. Policy for more information.
Advertisement

Trending