European state aid regulators approved almost 117 million euros (US$128.63 million) worth of regional investment aid to Nexen Tyre Corporation for the construction of a production plant in Zatec, Czech Republic. The aid granted from the Czech Republic promotes regional development without disturbing competition in the internal market, the European Commissionconcluded.
The Commission, which rules on the legality of state aid in the European Union, commented that the plant will create nearly 1000 jobs and contribute to the economic development of the region. Zatec is located in the Severozapad region, an area with high unemployment and a standard of living below the EU average, and is eligible for regional aid under EU state aid rules.
The aid consists of an employment grant, a direct grant to Nexen, and about 67 million euros (US$73.66 million) from tax relief and from authorities selling the plant grounds at a discount to Nexen. – Economic Times