Commission Decision (EU) 2024/2057 of 28 February 2023 on the State aid SA.48556 ... (32024D2057)
Commission Decision (EU) 2024/2057 of 28 February 2023 on the State aid SA.48556 (2019/C) (ex 2018/N) – Hungary – LIP – Regional investment aid to Samsung SDI (notified under document C(2023) 1478)
- COMMISSION DECISION (EU) 2024/2057
- of 28 February 2023
- on the State aid SA.48556 (2019/C) (ex 2018/N) – Hungary – LIP – Regional investment aid to Samsung SDI
- (notified under document C(2023) 1478)
- (Only the EN version is authentic)
- (Text with EEA relevance)
- 1.
- PROCEDURE
- 2.
- DETAILED DESCRIPTION OF THE AID MEASURE
- 2.1.
- Objective of the aid measure
- 2.2.
- The beneficiary
- 2.3.
- The investment project and eligible costs
- 2.3.1.
- The investment project
- 2.3.2.
- Eligible investment costs
- 24.
- Form of aid, aid granting authority and national legal basis
- 2.5.
- Aid amount
- 2.6.
- Aid intensity and cumulation with other investment aid
- 2.7.
- Own contribution
- 2.8.
- Maintenance of the assisted activity
- 2.9.
- Grounds for initiating the formal investigation procedure
- 3.
- COMMENTS FROM HUNGARY AND SAMSUNG SDI
- 3.1.
- Contribution to regional development and territorial cohesion
- 3.2.
- Incentive effect
- 3.2.1.
- Counterfactual
- 3.2.2.
- Recalculated local sourcing levels in both Xi’an (China) and Göd (Hungary) counterfactuals
- 3.2.2.1.
- Xi’an (China)
- 3.2.2.2.
- Göd (Hungary)
- 3.2.2.3.
- The [18-22] % mark-up on non-locally sourced equipment
- 3.2.3.
- Public support for the proposed alternative location in Xi’an, China
- 3.2.4.
- Introduction by Samsung SDI of a ‘discrete’ and a ‘probabilistic’ approach for a viability gap calculation
- 3.3.
- Proportionality
- 3.4.
- Necessity and appropriateness
- 3.5.
- Undue negative effects on competition and trade
- 4.
- COMMENTS FROM THE MINISTRY OF TRADE, INDUSTRY AND ENERGY OF SOUTH KOREA ON THE EXTENSION DECISION
- 5.
- ASSESSMENT
- 5.1.
- Existence of aid
- 5.2.
- Lawfulness of the aid measure
- 5.3.
- Compatibility of the aid measure
- 5.3.1.
- Objective of promoting regional development
- 5.3.1.1.
- Real and sustained contribution to regional development
- 5.3.1.2.
- Incentive effect
- 5.3.1.2.1. The existence of overriding strategic considerations nullifying from the outset the credibility of the Chinese alternative location
- 5.3.1.2.2. Differences in costs of machinery and local sourcing levels in Xi’an and Göd
- 5.3.1.2.2.1 Lack of credibility of the initial assumption of full local sourcing for equipment and machinery in both locations
- 5.3.1.2.2.2. Commission’s assessment of a realistic level of costs of machinery and equipment and of the share of local sourcing
- 5.3.1.2.2.2.1. General considerations
- 5.3.1.2.2.2.2. Credible level of local sourcing of machinery and equipment in the counterfactual scenario
- 5.3.1.2.2.2.3. Credible level of local sourcing of machinery and equipment for Investment 2 in Göd
- 5.3.1.2.2.3. Summary
- 5.3.1.2.3. Public support for the alternative location in China
- 5.3.1.2.3.1. Potential investment grant in China
- 5.3.1.2.3.2. Corporate income tax (CIT) in China of 15 % instead of 25 %
- 5.3.1.2.4. Discrete and probabilistic approaches to plausible NPV gap calculations
- 5.3.1.2.5. Conclusion on the incentive effect
- 5.3.2.
- Need for State intervention
- 5.3.3.
- Appropriateness
- 5.3.4.
- Proportionality of the aid amount
- 5.3.5.
- Avoidance of manifest undue negative effects on competition and trade
- 5.3.5.1.
- No manifest negative effect on trade: The adjusted aid intensity ceiling is not exceeded
- 5.3.5.2.
- No manifest negative effect on competition: The aid does not create overcapacity in a market in absolute decline
- 5.3.5.3.
- No manifest negative effect on trade: No counter-cohesion effect
- 5.3.5.4.
- No manifest negative effect on trade: Closure of activities elsewhere – potential relocation from Austria
- 5.3.5.5.
- Conclusion on the avoidance of manifest negative effects on competition and trade
- 5.3.6.
- No other undue negative effects
- 5.3.7.
- Balancing of positive and negative effects of the aid
- 5.3.8.
- Transparency
- 5.3.9.
- No relevant breach of EU law
- 5.3.10.
- Conclusion on compatibility of aid measure
- 6.
- CONCLUSION
- Article 1
- Article 2
- Article 3
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