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26.10.2017 14:56Тhe European Commission approves Hungary's €131 million investment aid to MOL petrochemical plant
© Roy Luck, flickr.com
The European Commission has found Hungary's €131 million investment aid to MOL Petrolkémia Zrt's Tiszaújváros plant to be in line with EU State aid rules, the Commission announced in a press realease. The support will contribute to the development of the Northern Hungary region, whilst preserving competition in the Single Market.
The investment aid granted by Hungary will support MOL's plans to invest in total €874 million to introduce the production of polyols and propylene glycols in its existing plant in Tiszaújváros. Polyol is the main component of polyurethanes, which are used for example for the production of foams for car seats, dashboards, coatings, adhesives and sealants. Propylene glycol is primarily used in the production of polymers, but is also used in food processing, personal care products and pharmaceuticals.
The project is expected to create new direct jobs in Tiszaújváros located in the Northern Hungary region, an area eligible for regional aid.
The Commission assessed the aid measure under the Guidelines on Regional State Aid for 2014-2020, which enable Member States to support economic development and employment in the EU's less developed regions and to foster regional cohesion in the Single Market.
The Commission found that without the public funding, the project would not have been carried out in Tiszaújváros. The Commission also found that the aid was limited to the minimum necessary, as it merely compensated the company for costs incurred by carrying out the project in Tiszaújváros rather than an alternative location. The Commission therefore concluded that the positive effects of the project on regional development clearly outweigh any distortion of competition brought about by the State aid.
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