Automotive companies operating in special economic zones are still have the right to receive state aid. The nominal value of aid granted from 1 January 2001 to 31 December 2011 to four companies exceeded PLN 922 mln. UOKiK has submitted the relevant report to the European Commission

There are 14 special economic zones (SEZ) in Poland. These are areas in which business activity is conducted based on preferential conditions. The undertakings benefit from state aid granted by means of tax reliefs – an income tax exemption, while large companies (employing over 250 persons) which were awarded a permit for business operation within SEZ before 1 January 2001 may benefit from real estate tax reliefs. Such a solution is aimed at attracting investments to specific regions, creation of new vacancies, and thus at development of particular regions of Poland.

As a result of negotiations preceding our accession to the European Union, Poland has undertaken the commitment, inter alia, to submit to the European Commission half-year reports on the aid granted to companies from the automotive sector operating within these zones. These are undertakings which were issued the permits to conduct activity before 1 January 2001 - Fiat Powertrain Technologies Poland, General Motors Manufacturing Poland, Isuzu Motors Polska and Volkswagen Motor Polska. They employ 5.7 thousand 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 these undertakings until 31 December 2006, e.g. for the purchase of a production line, machinery or construction of production halls.

According to the latest, already the fifteenth, report of the Office submitted to the European Commission, the undertakings have not exceeded the allowed aid limit, and therefore they can still benefit from the support. The total value of aid granted till 31 December 2011 was PLN 922.6 mln – within the year it increased by PLN 68.3 mln.

According to the latest, already the fifteenth, report of the Office submitted to the European Commission, the undertakings have not exceeded the allowed aid limit, and therefore they can still benefit from the support. They have used, inter alia, tax exemptions or real estate tax cancellation. The total value of aid granted till 31 December 2011 was PLN 922.6 mln – within the year it increased by PLN 68.3 mln.

Isuzu Motors Polska has reached the highest level – the value of aid received so far amounts to 25% of its investment costs. Volkswagen Motor Polska ranks second – till 30 June 2011 it was given support of 15.5% of the funds allocated by the company for investments. The third – Fiat Powertrain Technologies Poland – received aid amounting to 15.2% of the company funds for investments. The lowest aid value – 1.5% of expenditures for investments – was granted to General Motors Manufacturing Poland.

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
Phone: +48 22 55 60 106
Fax: +48 22 826 11 86
E-mail: [SCODE]bWFsZ29yemF0YS5jaWVsb2NoQHVva2lrLmdvdi5wbA==[ECODE]