Commission approves Hungary’s investment aid to MOL petrochemical plant

Background and further information:

The investment aid granted by Hungary aims at supporting MOL's plans to invest in total €874 million to introduce the production of polyols and propylene glycols in its existing plant in Tiszaújváros. The project was expected to create new direct jobs in the town located in the Northern Hungary region, an area eligible for regional aid.

The European Commission found that without the public funding, the project would not have been carried out in Tiszaújváros. It also found that the aid was limited to the minimum necessary, as it merely compensated the company for costs incurred by carrying out the project in Tiszaújváros rather than 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.

The European Commission announced on 25 October 2017 that Hungary's €131 million investment aid to MOL petrochemical plant is in line with EU State aid rules.