Repsol gets EU aid for Portugal plastics factories

11 July 2007 14:26  [Source: ICIS news]

PARIS (ICIS news)--The European Commission (EC) said on Wednesday it will allow the Portuguese government to grant Repsol Polimeros SA €150 million ($206 million) to establish two plants.

The commission said the aid would not distort the single market and met the requirements for regional aid as the plants will be built in the economically disadvantaged area of Alentejo.

Granted as corporate tax relief and a soft loan, the new plants will produce polypropylene and linear low-density polyethylene.

The money will also be used to expand the company’s existing cracker.

The project will take three years to complete and is expected to create around 512 new jobs in Alentejo.

Repsol Polimeros SA is a subsidiary of Spanish energy group Repsol Group.

($1 = €0.73)

By: Philippa Jones
+44 20 8652 3214

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