Brussels (Brussels Morning Newspaper) – The European Commission has cleared the Poland grant worth €23 million to chemical company PCC for an investment into a new plant.
According to the European Commission, it received an objection from a direct competitor of PCC in 2014. It alleged that the direct contribution was not in line with EU State aid regulations. Following a complaint in October 2019, the European Commission unlocked an in-depth investigation into both the direct grant and the tax exemption.
What did the Commission conclude?
The Commission evaluated the two Polish measures under the EU Regional Aid Guidelines. The Commission found,
“The direct grant and the tax exemption had an ‘incentive effect,’ as they gave PCC a real incentive to carry out the investment in Brzeg Dolny, a disadvantaged region. PCC would not have carried out the investment in the region or would have carried it out at a smaller scale, without the public support.
The overall aid amount granted by Poland to PCC did not exceed the regional aid ceiling applicable to the Brzeg Dolny region.”
When did the Poland award grant to PCC?
As reported by the Commission, Poland gave public support to PCC for investing in a new plant to make ultra-pure mono-chloroacetic acid in Brzeg Dolny, Poland, between 2012 and 2013.
It was reported that support took the formation of a direct grant of €16 million and a tax exemption of up to €7 million. Further, Poland did not declare its support to the EU Commission.
PCC MCAA Sp. z o. o, simply called PCC, is part of the PCC Group, an international corporation with its headquarters in Duisburg, Germany. The PCC Group operates in chemicals, silicon, and logistics and employs about 3,300 employees in 66 subsidiaries in 41 locations around the globe. Founded in 1993 by Waldemar Preussner, who remains the sole shareholder and Chairman of the Supervisory Board. It deals with the manufacture of chemical feedstocks, specialty chemicals, and silicon derivatives, together with container logistics services.