Brussels, 04/07/2001 (Agence Europe) - On Tuesday, the European Commission decided that the state aid of EUR 35.4 million proposed by the German government for the construction of a new Oriented Strand Board (OSB) production plant in Heiligengrabe (Brandenburg) is compatible with the single market. (OSB competes directly with plywood.) The intended aid corresponds to 31.5% of the eligible investment cost, below the maximum aid allowed for economic development in the region (35%). The beneficiary, Kronopoly GmbH is located in a region lacking a strong economic structure and suffering from high unemployment. The new factory is expected to employ 220 people and create 337 indirect jobs. Kronoply's shares are held by Kronotex GmbH, appertaining to Krono Holding AG, Switzerland.