Press release: State aid: Commission endorses investment aid to Apollo Hungary for production of tyres in Gyöngyöshalász

The European Commission has found that regional investment aid totalling €95.7 million (approximately HUF 29 billion) to Apollo Tyres (Hungary) Kft. for the construction of a tyre plant in Gyöngyöshalász (Northern Hungary) is in line with EU state aid rules.

In June 2014, Hungary notified plans to support the construction of a new tyre plant with a direct grant of €48.2 million, an employment grant of €2.8 million and tax allowances of around €44.7 million. The project involves investments of €442.2 million and is expected to create over 975 now jobs. It is to be carried out in Gyöngyöshalász in the Észak-Magyaroszág region, an area with high unemployment and a GDP well below EU average, eligible for regional aid under Article 107(3)(a) of the Treaty on the functioning of the European Union (TFEU).

The European Commission concluded that the measure's positive contribution to regional development would outweigh the distortion of competition created by the state aid.

ESO: Background information: Press Release: State aid: Commission approves regional aid map 2014-2020 for Hungary http://www.europeansources.info/record/press-release-state-aid-commission-approves-regional-aid-map-2014-2020-for-hungary/

ESO: Background information: Press Release: State aid: Commission endorses investment aid for Hankook for production of tyres in Rácalmás, Hungary http://www.europeansources.info/record/press-release-state-aid-commission-endorses-investment-aid-for-hankook-for-production-of-tyres-in-racalmas-hungary/

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