Fee´s Resolution on regional state assist to Hungary for Samsung SDI, printed in OJ – Cyber Tech

Right now, official publication has been manufactured from Fee Resolution (EU) 2024/2057 of 28 February 2024 on the State assist SA.48556 (2019/C) (ex 2018/N)- Hungary-LIP-Regional funding assist to Samsung SDI (notified beneath doc C (2023) 1478).

The European Fee evaluated Hungary’s proposed regional funding assist for Samsung SDI Magyarország Zrt. beneath Article 108(2) of the Treaty on the Functioning of the European Union (TFEU).

Hungary notified the Fee of its intention to grant assist to Samsung SDI on Might 16, 2018, and the Fee initiated a proper investigation on October 14, 2019, calling for feedback from events. Following feedback from Hungary, Samsung SDI, and South Korea, the investigation scope was prolonged on June 29, 2021. Additional feedback and knowledge have been gathered from Hungary, Samsung SDI, and South Korea, with closing submissions made by March 2022. Lastly, the Fee sought extra data from Hungary in December 2022 and on February 17, 2023, Hungary agreed to have the choice adopted and notified in English.

The help goals to advertise regional improvement by increasing Samsung SDI’s EV battery cell manufacturing facility in Göd, Central Hungary, an space eligible for regional assist beneath Article 107(3)(c) TFEU with a 35% assist ceiling. Samsung SDI Magyarország Zrt., a subsidiary of South Korea’s Samsung SDI Co. Ltd., concerned in manufacturing rechargeable batteries for IT, EVs, and vitality storage programs. The venture (Funding 2) includes increasing the present facility to extend manufacturing capability to six million battery cells per thirty days, and the enlargement contains investments in tools, equipment, and services, anticipated to create 1,200 new jobs, with complete eligible prices being roughly HUF 380.6 billion (EUR 1.2 billion), and the help quantity HUF 34.9 billion (EUR 110 million) with a most assist depth of 9.11%.

The measure constitutes a state assist beneath Article 107(1) TFEU because it grants an financial benefit to Samsung SDI, possible affecting commerce and competitors inside the EU. As the help exceeds the notification threshold and includes a big enterprise, it required particular person notification and was not exempt beneath Regulation (EU) No 651/2014.

With all, the help is assessed beneath the Regional Support Tips (RAG) efficient from July 1, 2014, to December 31, 2021, and the funding qualifies as “new course of innovation,” making it eligible for regional assist beneath Article 107(3)(c) TFEU. It facilitates regional improvement with out adversely affecting commerce situations to an extent opposite to the widespread curiosity.

The funding in Göd, an assisted area, will contribute to regional improvement with quite a few advantages for the world, and is therefore deemed vital, applicable, and has an incentive impact, supplied it doesn’t exceed EUR 89.6 million, protecting the Web Current Worth (NPV) hole. Furthermore, the help is taken into account proportionate as it’s restricted to the recognized NPV hole. What´s extra the evaluation revealed no vital damaging affect on competitors and commerce, guaranteeing the help doesn’t create or reinforce market dominance or overcapacity in a weak market.

Hungary should publish detailed details about the help on a complete State assist web site, following the Fee’s transparency lguidelines, which should embrace the complete textual content of the help choice, the granting authority, beneficiary particulars, assist quantity, date, kind of enterprise, area, and financial sector, and the small print ought to be accessible to the general public for no less than 10 years.

There isn’t any indication that the help violates any related EU legal guidelines, and no reasoned opinions or complaints have been obtained by the Fee concerning potential infringements associated to this assist. With all, the help measure is suitable with the inner market beneath Article 107(3)(c) TFEU, as much as a most of EUR 89.6 million. Any quantity past EUR 89.6 million, as much as the notified EUR 108 million, is deemed incompatible with the inner market. Hungary is permitted to implement the help as much as EUR 89.6 million and should not implement the remaining quantity, having to tell the Fee inside two months of the measures taken to adjust to this choice.

Learn the official publication full press launch right here.