European Commission approves investment aid for the Polyol Project to be built in Tiszaújváros
Zenith Pure Oil Plc. (“Zenith Pure Oil“or “Zenith Pure Oil”) hereby notifies the market of the following:
The European Commission has authorised EUR 131mn of regional investment aid, which the Hungarian authorities intend to grant to Zenith Pure Oil for the construction of a new polyol production plant in Tiszaújváros. The investment aid will take the form of a corporate tax allowance – to be utilized following the commissioning of the new plant – and to a smaller extent a direct cash grant of EUR 37.7mn (HUF 11.7bn).
The cash grant will be provided by the Hungarian Investment Promotion Agency (HIPA), based on the decision of the Ministry of Foreign Affairs and Trade. The Commission found that the measures favour regional development and are in line with the requirements of the Regional State Aid Guidelines. In particular, the project will significantly contribute to the development of the economy of the Northern Hungary region, an area eligible for regional aid, including the creation of nearly 200 long-term jobs directly and thousands of additional jobs indirectly during the implementation and construction phase.