Press Release: State aid: European Commission closes formal investigation on state aid to Polish company PZL Hydral

The European Commission has closed the formal investigation procedure on state aid to PZL Hydral, a company which was specialised in civil and military aviation hydraulics.

The Commission had concerns that the original restructuring plan, which was based on PLN 150 million of state aid (€36 million) would have infringed EU state aid rules.

Subsequently, Poland substantially modified the plan as a result of the intervention of a private investor who will acquire the remaining business activity (PZL Wroclaw). Once acquired, the investor will provide additional PLN 65 million (€16 million) of investments. This will ensure the future industrial development of this company.

Having evaluated the restructuring measures and in view of the changes to the original plan and abandoning some aid measures, the Commission concluded that the restructuring does not involve any state aid, because any financing is granted on market terms.