Brussels, 23/02/2007 (Agence Europe) - The European Commission has launched an in-depth investigation to establish whether the €0.7 million aid that the Polish authorities are planning to provide towards the restructuring of Techmatrans, a firm specialised in technological transportation (e.g. chain hoists, gantry cranes and lifters) in Poland, is compatible with EC Treaty state aid rules. The Commission doubts whether the notified restructuring plan is sufficient to restore the firm's long term viability, whether the aid is limited to the necessary minimum and whether the aid creates undue distortions of competition.
In August 2006, Poland notified the planned restructuring aid to Techmatrans, which amounts to €0.7 million (PLN 2.8 million). Techmatrans is owned by the state. It produces technological transport devices and systems for industrial plants in the automotive, metallurgical and construction sectors. It also provides the repair, service and modernisation of transport technology systems. The company has been operating at a loss since 2000 and the planned restructuring consists mainly of investment in production assets.
In its preliminary assessment, the Commission doubted the restructuring plan would be sufficient to restore long-term viability and that the measures to compensate the distortion of competition created by the aid were appropriate. The Commission also has doubts whether the aid is limited to the necessary minimum, as it is not accompanied by any market financing. Interested parties are invited to comment on the aid plans before the Commission publishes its conclusions. (cd)