Brussels, 10/05/2001 (Agence Europe) - The European Commission has decided to approve State aid of EUR 119 million in favour of Wacker Chemie GmbH Nünchritz (Land of Saxony, Germany), for the extension and modernisation of the former Hüls AG silicone plant. The latter took over from Chemiewerk Nünchritz GmbH, privatised in 1991 by the Treuhandanstalt. It was then bought up and its name changed to become Hüls Silicone GmbH Werk Nünchritz. Then, after having suffered major losses, it was taken over by Wacker Chemie on 1 October 1998.
In December 2000, Germany notified, on the basis of the multi-sectoral framework for regional aid for large investment projects, total aid of EUR 119 million in favour of Wacker Chemie for the extension and restructuring of the Nünchritz silicone plant. The aid proposed consists of investment aid in the form of a non-reimbursable subsidy amounting to EUR 65 million, as well as a further investment premium of EUR 54 million. The Commission has approved this aid as it is below the maximum aid intensity allowed, as stipulated in the multi-sectoral framework for the project in question. Total aid intensity is 26.77% on the basis of eligible costs of EUR 445 million. In the region concerned, the regional aid ceiling may reach a maximum of 35% for large companies. The project will entail the creation of 240 permanent jobs and the safeguard of 625 existing jobs of the former Hüls plant.