Automotive companies operating in special economic zones have preserved the right to receive state aid. The nominal value of aid granted from 1 January 2001 until 30 June 2010 to four undertakings amounted to over PLN 852 million. The report on that issue has been submitted by UOKiK to the European Commission.

There are 14 special economic zones (SEZ) in Poland. They are areas in which business activity is conducted on the basis of preferential conditions. The undertakings use state aid granted in the form of tax reliefs – an income tax exemption while large companies (employing over 250 persons) that were awarded a permit for business operation within SEZ prior to 1 January 2001 use real estate tax reliefs. Such a solution is aimed at attracting investments to specific regions, generation of new jobs, and thus at stimulation of Poland’s regional development.

As a result of negotiations preceding our accession to the European Union, Poland has undertaken the commitment, inter alia, to submit half-year reports on the aid granted to companies from the automotive sector operating within these zones to the European Commission. These are undertakings that were granted permits to operate business prior to 1 January 2001: Fiat-GM Powertrain, General Motors Manufacturing Poland, Isuzu Motors Polska and Volkswagen Motor Polska. They employ 5,300 persons in total.

Pursuant to the regulations imposed on Poland, the total amount of aid for each of these companies due to implementation of investments in the automotive sector must not exceed 30% of investment costs incurred by them until 31 December 2006, e.g. for the purchase of a production line, machinery or construction of halls.

As indicated by the latest, already the twelfth, report of the Office submitted to the Commission, the undertakings have not surpassed the admissible amount of aid, and therefore they are still allowed to use the support. The undertakings have used, inter alia, tax exemptions or real estate tax cancellation.

Isuzu Motors has reached the highest level – the value of support received so far amounts to 23.8% of its investment costs. The second position occupies Volkswagen Motor Polska – it has been awarded support amounting to 14.6% of the funds allocated by the company for investments. The third one – Fiat-GM Powertrain – has received aid amounting to 14.2% of the invested amount until 30 June 2010. The lowest support – amounting to 1.4% of expenditure for investment – has been granted to General Motors.

The results of monitoring of state aid granted to automotive companies in the previous years can be found at UOKiK’s  website.

Additional information for the media:
Małgorzata Cieloch, Spokesperson for UOKiK
Department of International Relations and Communication
Pl. Powstańców Warszawy 1, 00-950 Warszawa
Tel.:(+48 22) 827 28 92, 55 60 106, 55 60 430
faks (+48 22) 826 11 86
E-mail: malgorzata.cieloch@uokik.gov.pl