EC okays Slovakia’s investment aid for Mondi SCP

Mondi SCP wants to invest some €310 million while it asks for investment aid worth €49 million.

Paper mill Mondi SCP in RužomberokPaper mill Mondi SCP in Ružomberok (Source: TASR)

The European Commission (EC) announced on July 13 that based on its investigation, Slovakia’s decision to grant investment aid worth €49 million to the papermill Mondi SCP in Ružomberok (Žilina Region) is in line with EU regulations on state aid.

The EC has concluded that state investment aid in the form of a tax allowance granted to the company in March 2016, following the EC’s preliminary approval, will contribute towards developing the area without violating the competition rules of the EU’s single market.

Read also:Opposition slams aid for Mondi SCP Read more 

Mondi SCP wants to invest some €310 million in expanding the production line at its plant in Ružomberok. In particular, it wants to acquire a machine for making a new product – white-surface cardboard. The company should thus create 105 new jobs.

The EC took into account the fact that the town of Ružomberok is among the areas eligible for regional aid.

In its media statement, the EC said that the positive effects of this project in terms of regional development outweigh any distortion of competition induced by state aid.

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