Commission approves Slovakia’s investment aid to paper manufacturer Mondi SCP

Background and further information:

The investment aid granted by Slovakia aims to support Mondi SCP's plans to investment €310 million to introduce in its existing plant in Ružomberok the production of corrugated case material. The project is expected to create 105 direct jobs in the Žilina region, am area eligible for regional aid.

The Commission's assessment showed that without the public funding, the project would not have been carried out in Ružomberok, but in another location outside the European Economic Area. The Commission also found that the aid was limited to the minimum, as it merely compensated the company for the financial disadvantage incurred by carrying out the project in Ružomberok and not in 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.

Slovakia granted the aid subject to Commission approval in March 2016. The aid was granted in the framework of pre-existing aid schemes, but had to be notified to the Commission for individual assessment and clearance because of the high aid amount that carries a higher risk of distorting competition.

The European Commission announced on 13 July 2017 its decision to consider Slovakia's €49 million investment aid to Mondi SCP - a paper and pulp manufacturer - to be in line with EU state aid rules.

The Commission concluded the support would contribute to the development of the region impacted by the company's investment whilst preserving competition in the Single Market.