Brussels, 11/05/2007 (Agence Europe) - On Friday 11 May, the European Commission opened an in-depth investigation into restructuring aid granted to Italian chemical companies NGP and Simpe.
NGP, which produces polyester polymer in Campanie, ran into financial difficulties in 2004 and an agreement to safeguard the production of polyester polymer on the Acerra site was signed by national and regional authorities and by several companies located on the site. By virtue of this agreement, NGP's polymerisation assets were taken over by a new company, Simpe, and NGP concentrated on the provision of services to other companies.
Italy granted €20.87 million in aid to the project, but only notified the Commission in July 2006. The Commission must assess whether NGP or Simpe should be considered the beneficiary of the restructuring aid: new companies can not normally receive restructuring aid (see EUROPE 8743). The Commission must also ascertain whether or not the companies contributed 50% of the restructuring costs and whether compensatory measures were put in place to address potential competition distortions, as is required by European legislation. (cd)