On Friday 28 September, the European Commission approved the Hungarian investment aid measure of €45 million awarded to the chemicals company BordosChem.
BorsodChem plans to invest €142 million in a new facility for the production of aniline within one of its existing factories, in Kazincbarcika, in Hungary. Aniline is a chemical used as an input, for instance in construction, automotive production and household electronic goods.
Currently, the substance is imported by BorsodChem, a subsidiary of the Wanhua group, from the parent company in China. The company's plans will create at least 50 direct jobs in northern Hungary, a region that is eligible for regional aid.
The Commission examined the measure in light of the Guidelines on Regional State Aid, which allow member states to support economic development in the least developed regions of the EU.
The institution found that the investment plan would not have been possible without the public aid, as it would have been to BorsodChem's advantage to continue to import aniline from China. The Commission also considers that the aid is proportionate, as it is limited to what is strictly necessary.
Also noting that the investment will help to support job creation, the region's economic development and the reduction of environmental risks involved with the transportation of the aniline, without causing a significant competition distortion, the institution decided to approve the Hungarian measure. (Original version in French by Lucas Tripoteau)