Overheidssteun: Commissie onderschrijft hulp 56 miljoen aan Sunfilm voor productie van zonnepanelen in Saksen, Duitsland (en)

The European Commission has authorised, under EC Treaty state aid rules, €56 million of regional investment aid, which the German authorities grant to Sunfilm for the production of thin-film solar modules in Saxony, Germany. The project involves a total investment of €393 million and is expected to create at least 380 new jobs in the region. The Commission found the measure to be compatible with the requirements of the Regional Aid Guidelines 2007-2013 (see IP/05/1653) and in particular with the rules on large investment projects, as Sunfilm would not gain significant new market shares and the investment takes place in a fast growing market, the photovoltaic sector. Therefore the positive impact of the investment on regional development can be considered to outweigh the potential distortions of competition.

Competition Commissioner Neelie Kroes i said: “This investment project is expected to create new jobs in Sachsen and will contribute to the development of the region without unduly distorting competition."

Sunfilm AG is a newly founded company which is setting up a plant to manufacture large size solar modules based on the thin-film technology. Solar modules allow, as part of an integrated solar energy system, to convert sunlight into electricity.

The project is to be carried out in Großröhrsdorf, Sachsen, Germany, an area with an abnormally low standard of living and high unemployment and so eligible for regional aid under Article 87(3)(a) of the EC Treaty.

In 2006 the German authorities already granted aid for a first production line in Großröhrsdorf. This aid was not subject to individual notification to the Commission. The German authorities now intend to support a second production line on the same site and notified the total aid for both projects to the Commission. For the calculation of the maximum aid amount, the Commission took into consideration the total investment costs of €393 million. The total aid, amounting to €56 million for the two projects, is granted on the basis of existing aid schemes.

The Commission’s assessment of the compatibility of regional aid to large investment projects depends on the market shares of the beneficiary and on the production capacity created by the investment or the performance of the market. In case the thresholds as set in the Regional Aid Guidelines are not exceeded, the effect of the aid on competition is deemed to be outweighed by its positive contribution to regional development.

The Commission found that Sunfilm's share of the worldwide solar module market would remain far below the 25% threshold, both before and after the planned investment.

As the solar module market has a double-digit growth rate, which is fairly above the European Economic Area (EEA) growth rate, the Commission also concluded that the additional production capacity created by the project would raise no concerns.

The non-confidential version of the decision will be made available under the case number N 453/2008 in the State Aid Register on the DG Competition website once any confidentiality issues have been resolved. New publications of state aid decisions on the internet and in the Official Journal are listed in the State Aid Weekly e-News.