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Image header Agence Europe
Europe Daily Bulletin No. 9119
Contents Publication in full By article 25 / 40
GENERAL NEWS / (eu) eu/state aid

In-depth investigation into aid to Chupa Chups

Brussels, 27/01/2006 (Agence Europe) - The European Commission has decided to conduct an investigation into aid paid by the Region of Catalonia to the confectionery company Chupa Chups SA. It fears that the loan of 35 million EUR is not in line with the principle of the private investor, and will attempt to find out whether Community rules on State aid have been observed. The group, which produces mainly lollipops (70% of sales), has four production centres: Sant Esteve de Sesrovires (Barcelona) and Villamayor (Asturias), plus two in Russia and in Mexico. The restructuring plan launched in 2000 to lead to the closure of factories in France, Brazil and China, and the phasing-out of secondary brands.

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