Brussels, 13/07/2007 (Agence Europe) - On 12 July, the European Commission authorised restructuring aid for Javor Pivka and Novoles Straža, two Slovenian companies manufacturing semi-finished wood products and furniture. In May 2006, the Commission opened an in-depth investigation to check whether state aid given to these two companies was compatible with EC Treaty state aid rules. The authorisation is conditional on the implementation of the restructuring plans submitted by the companies.
Javor Pivka and Novoles Straža are both manufacturers of semi-finished wood products (e.g. plywood, fine veneer) and furniture, each with about 800 employees. Both companies submitted their restructuring plans to the Slovenian authorities in April 2004. To finance the restructuring of the two firms, Slovenia granted aid in the form of direct subsidies and loan guarantees of about €6 million each. The Commission initially had doubts about the compatibility of the aid with the EU rules on the restructuring of companies in difficulty. Following an in-depth investigation, the Commission concluded that the plans were likely to restore the companies' viability by 2008. Moreover, the Commission ascertained that the companies were making significant contributions to the restructuring and no undue distortion of competition would be created by the aid. (ol)