Press Release: State aid: Commission authorises restructuring aid to Polish metal tools manufacturer Bison Bial subject to conditions

Following an in-depth investigation (see IP/06/1846), the European Commission has concluded that a €8.2 million aid to Bison Bial, Poland, is compatible with EC Treaty state aid rules provided that certain conditions are respected. The Commission found that the restructuring plan is sufficient to restore the firm's viability provided that the investment programme announced is fully implemented. However, the Commission considers that, without appropriate safeguards, the aid could lead to undue distortions of competition. The metal tools and fixtures manufacturing sector has excess capacity and the aid might result in shifting the difficulties and the burden of adjustment to more efficient firms and workers operating without aid. To avoid this, Bison Bial must sell, by the end of 2009 one of its production divisions that generates 13% of the company's revenues.