Restructuring aid for Poland's PZL Hydral questioned

The European Commission has opened an investigation in order to establish whether zł.130.5 million, which Poland intends to grant for the restructuring of PZL Hydral is in line with EU guidelines for state aid.

The EC has doubts whether the company can receive new restructuring aid, as it has received state support in the past. The statement released by the EC also states that the inquiry is to verify whether the aid was sufficient to restore the company's long-term capability and whether it is enough for the restructuring to be undertaken.

"We have to make sure that public resources used to support restructuring will enable the company to stand on its own feet in the long term and are not simply used to keep a company afloat artificially," EU Competition Commissioner Neelie Kroes said.

PZL Hydral is a leading manufacture in the Polish market in producing industrial hydraulic and electronic hydromechanics fuel-regulating systems for aviation.

Source: EC, Reuters