Press Release: Commission opens formal investigation into possible subsidies to Finland’s Componenta

The European Commission opened a formal state aid investigation on 16 November 2004 concerning a potential subsidy by the city of Karkkila, in the southern part of Finland, to Componenta Corporation, a company which produces ready-to-install cast, geared and machined components, based in the same city but with activities also in Sweden and the Netherlands. Based on the information available at that stage, the Commission believed that the acquisition by the city of Componenta's 50% share in a real estate joint venture might hide a subsidy which, if confirmed, would probably not be allowed under regional investment aid rules or any other European Union rules.