Commissie start onderzoek naar Spaanse steun aan staalbedrijf Solmed (en)

woensdag 10 december 2003

The Commission today decided to launch an in-depth probe into investment support given to the Spanish steel producer Solmed Galvanizados S.L. Solmed has received financial support amounting to around € 4 million. The probe opened today aims to establish the precise facts of the case and invites interested parties to submit their views.

Solmed is a well-known producer of galvanised sheet which is a steel product. It received investment support of approximately € 4,2, which has not been notified. Investment aid to the steel sector is generally prohibited under the EC state aid rules.

Background

The aid consists of a subsidy amounting to € 4,2 million towards investment costs of € 52.8 million. This aid has been granted according to the framework of regional incentives for investment.

Solmed Galvanizados S.L is active in the production of galvanised sheet. Solmed is a joint venture between steel companies Aceralia and Sollac. After the merger between Usinor, Arbed and Aceralia which resulted in the creation of Arcelor, Solmed is 100% owned by Arcelor. Arcelor is the largest steel producer in the world.

According to the point 27 of the Multisectoral Framework on regional aid for large investment projects(1) investment aid to the steel sector is prohibited. In view of this incompatibility the commission has opened the procedure against Spain.

(1) OJ C 70 of 19.3.2002, p. 8.