The European Commission has authorised, under EU Treaty state aid rules, around €65 million of aid that the Slovak authorities intend to grant to Samsung Electronics LCD Slovakia s.r.o., part of the Korean Samsung Group. The aid is intended to contribute to the setting-up of a factory to assemble liquid crystal display (LCD) TV sets in Voderady, Slovakia, the SITA wrote. The Commission's assessment found that the measure complied with the requirements of the Regional Aid Guidelines of 1998.
The measure was also found to respect the conditions of the 2002 Multi-sectoral Framework on regional aid for large investment projects, as the aid intensity for the project is below the maximum allowable ceiling of 23.92%; Samsung's market share remains below the 25% threshold on the markets for flat panel display modules both before and after the investment; and the additional production capacity created through the project remains below 5% of the apparent consumption of the products concerned in the European Economic Area (EEA).
The high-tech project, with a total investment of nearly €300 million, will contribute to the regional development of Western Slovakia by creating around 1,200 jobs directly and attracting further investment by component suppliers and subcontractors in the area, which is liable to create more than 3,700 jobs indirectly. Construction work on the project started in 2007 and is due to be completed at the end of 2011. The aid will be granted in the form of direct grants and tax relief. SITA
Compiled by Zuzana Vilikovská from press reports
The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.
2. Jul 2008 at 17:00