Antitrust office approves subsidies for Hyundai

23-10-2006

The Office for the Protection of Competition has approved state subsidies for Hyundai's planned car plant in northern Moravia. The information was released by a representative on Monday. According to Hyundai's contract with the Czech Republic, the company will be eligible to receive subsidies of up to 2.4 billion crowns - the equivalent of around 106 million US dollars. The plant - as well as up to fifteen suppliers - could then receive an additional 2.5 billion crowns towards creating new jobs and introducing re-qualification programmes for employees. According to the office the state subsidies are fully in-line with EU norms, but the subsidies will still need to be approved by the European Commission.