EC maakt 111.5 miljoen euro vrij voor steun Mercedes-Benz in Hongarije (en)
IP/09/1147
Brussels, 16 th July 2009
State aid: Commission endorses €111.5 million aid for Mercedes-Benz investment in Kecskemét, Hungary
The European Commission has authorised, under EC Treaty state aid rules, HUF 29.7 billion (€111.5 million) of aid, which the Hungarian authorities intend to grant to Mercedes-Benz Hungary, owned by Daimler AG, for the construction of a new car manufacturing plant in the region of Dél-Alföld. The measures are in line with the requirements of the Regional Aid Guidelines 2007-2013 (see IP/05/1653 ). In particular, the project will significantly contribute to the development of the region's economy, including the creation of 2 500 direct jobs, and respects the market share and capacity thresholds of the Regional Aid Guidelines, which ensures that potential distortions of competition are limited.
Competition Commissioner Neelie Kroes i said: “I am pleased to approve aid for this investment project which will contribute to regional development in a disadvantaged region of Hungary. The Commission is satisfied that Daimler's market share and the production capacity created by the project are not excessive and that there will be no disproportionate distortions of competition”.
Mercedes-Benz Hungary's investment project is aimed at installing new machinery and equipment for the manufacture of two new passenger car models. The project involves investments eligible for the calculation of the aid of HUF 146.2 billion (€548.4 million) and an aid amount of HUF 29.7 billion (€111.5 million) in the form of a cash grant and a corporate tax allowance. In addition, Mercedes-Benz Hungary will receive financial support for railway access to the public railway network which amounts to some HUF 214 million (EUR 0.8 million). Mercedes-Benz Hungary will finance the project using own equity and bank loans.
The project is to be carried out in the region of Dél-Alföld, a disadvantaged area eligible for aid under Article 87(3)(a) of the EC Treaty as a region with an abnormally low standard of living and high unemployment..
The aid would be granted under existing regional investment aid schemes. However, due to the high amount of aid involved, it had to be notified to the Commission for individual assessment and clearance.
The Commission’s assessment of regional aid to large investment projects aims to verify whether the market share of the beneficiary and the production capacity created by the investment remain below the thresholds set in the Regional Aid Guidelines. When the thresholds 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 Daimler's market share would remain significantly below the 25% threshold in each of the car segments concerned (small family cars, compact multi-purpose vehicles and the total passenger car market), both before and after the planned investment. The Commission also verified that the capacity increase generated by the project remains below 5% of the apparent consumption of the product concerned in the European Economic Area (EEA).
The non-confidential version of the decision will be made available under the case number N 671/2008 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 .