Press Release: State aid: Commission approves a repayable advance of €12 million to Volvo Aero Corporation for the development of a novel aero engine component

The European Commission has authorised under EU State aid rules a repayable advance of 120 million Swedish crowns (approx. €12 million) that Sweden intends to grant to Volvo Aero Corporation for the development of the Intermediate Compressor Case (ICC) for the Trent XWB engine. The engine is being developed by Rolls-Royce and will equip the new Airbus A350 XWB aircraft family. The Commission found that the aid complies with the requirements of the EU framework for state aid for Research, Development and Innovation, because the positive effects of the aid outweigh potential distortions of competition brought about by the aid.

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