Belgium (Brussels Morning Newspaper), The European Commission has approved, under EU State aid rules, some €99.5 million support for Romanian company Nokian Tyres.
The aid will support the establishment of a new zero carbon dioxide emission factory for passenger car tyres in Oradea. The measure will contribute to the EU objectives, says the EU commission.
This relates to job creation, regional development, and to the green transition of the regional economy.Romania notified the Commission of its plan to support Nokian Tyres in the establishment of a new zero carbon dioxide emission tyre factory in Oradea, Bihor County (Nord-Vest region).
Under the measure, the aid will take the form of a direct grant. The aid amount will be around €99.5 million. The investment is estimated to total approximately €650 million.
The plant is expected to have a capacity of approximately 6 million units per year. The project will create approximately 500 direct jobs, as well as further indirect jobs. The project is also expected to bring sustainability benefits by aiming to be the world’s first zero carbon dioxide emission tyre factory. The factory will be located in Oradea, an area eligible for regional aid.
The EU Commission said in a statement that is assessed the measure under EU State aid rules which allows Member States to promote the economic development of the most disadvantaged areas of the EU.
The Commission found that:
- The measure will contribute to job creation, the economic development and the competitiveness of a disadvantaged area. In particular, the measure will have a positive impact on employment, creating approximately 500 direct jobs, as well as further indirect jobs.
- The aid has an incentive effect, as the beneficiary would not have carried out the project without the public support.
- The move has a limited impact on competition and trade within the EU. In particular, it is necessary and appropriate to set up the new factory of Nokian Tyres, while contributing to the regional development.
An EC spokesman said,
The aid is proportionate and limited to the minimum necessary to trigger the investment in Oradea.On this basis, the Commission approved the Romanian measure under EU State aid rules.
An EU source added,
Europe has always been characterised by significant regional disparities in terms of economic well-being, income and unemployment. Regional aid aims to support economic development in disadvantaged areas of Europe, while ensuring a level playing field between Member States.
