© HIPA (illustration purpose only) General | October 15, 2019
EC investigates public support for Samsung in Hungary
The European Commission has opened an in-depth investigation to assess whether Hungary's plans to grant EUR 108 million of public support to Samsung SDI for investing in the expansion of its battery cell production facility in Göd (Hungary) is in line with EU rules on regional State aid.
Commissioner Margrethe Vestager, in charge of competition policy, said: "Public investment is important to foster economic growth in disadvantaged regions in Europe. But public support should only be given if it's necessary to trigger private investment in the disadvantaged region concerned. Otherwise, it only gives the beneficiary an unfair advantage over its competitors, at the expense of taxpayers. The Commission will carefully investigate whether Hungary's planned support is really necessary for Samsung SDI to invest in Göd, is kept to the minimum necessary and does not distort competition or harm cohesion in the EU.” Samsung SDI is one of the main players in the fast growing market of lithium-ion battery market. Samsung SDI is investing around EUR 1.2 billion to expand the production capacity of lithium-ion cells and battery packs for electric vehicles in its existing plant located in Göd (Hungary). The work on the capacity expansion started in December 2017, and the implementation of the project is now well advanced. In 2018, Hungary notified the Commission of its plans to grant EUR 108 million of public support for the project. EU State aid rules, in particular the Commission's 2014 Regional State Aid Guidelines, enable Member States to support economic development and employment in the EU's disadvantaged regions and to foster regional cohesion in the Single Market. In order to be approved, the measures need to fulfil certain conditions to make sure that they have the intended positive effect. This includes that the support must incentivise private investment, be kept to the minimum necessary, must not lure away investment from a region in another Member State which is as or more disadvantaged ("anti-cohesion effect") and must not be directly causing the relocation of activities (such as jobs) to the Member State granting the support from elsewhere in the EU. The Commission has doubts at this stage that the planned aid support of EUR 108 million to Samsung SDI in Göd complies with all relevant criteria of the Regional Aid Guidelines:
- the Commission has doubts whether the measure has an “incentive effect”. In this respect, the Commission will investigate whether the decision by Samsung SDI to invest in Hungary was directly triggered by the Hungarian public support or whether the investment would have been carried out in Göd, even absent the public support
- the Commission also has doubts in relation to the public support's contribution to regional development and on its appropriateness and proportionality
- the Commission cannot exclude at this stage that the public support may lead to the relocation of jobs from other EU Member States to Hungary
A new EMS provider sees the light of day EMS providers DataED and Bestronics merge to launch a new player – Emerald EMS.
Tektronix joins the fight agains COVID-19 Tektronix has shifted its focus from supporting vehicle manufacturing to assisting with ventilator production.
ABB completes divestment of Power Grids to Hitachi ABB has reached a significant milestone in the company’s transformation towards a decentralized global technology company, with the completion of the divestment of 80.1% of its Power Grids business to Hitachi.
Germany amps up domestic battery production with massive state subsidies The German government is investing more than EUR 1.5 billion in battery cell research and production.
Internal promotions and executive retirements at Kimball EMS provider, Kimball Electronics, has made two new internal promotions aimed at contributing to the company accelerating its strategic growth plans.
Kyocera & TMDU team up for research on vitals measurement headset Kyocera Corporation and Tokyo Medical and Dental University (TMDU) have teamed up on a joint research project to develop a wireless headset that can remotely monitor high accuracy patient biometrics, such as blood oxygen saturation (SpO2).
German battery manufacturer receives funding for cell production facility VARTA AG receives public funding of EUR 300 million for battery cell production facility.
Scanfil to streamline its factory network The EMS provider is planning to combine the production of its Hamburg factory with its other factories in Germany and Poland
Kitron awarded new order within measurement technology Kitron has been awarded new business for measurement technology. The award covers a period of five years, and the expected annual value is between EUR 3.5-5 million.
NORBIT ASA awarded aquaculture contract Norwegian technology manufacturer, NORBIT, has been awarded a new contract from an existing customer within the aquaculture market.
Saki strengthens its Asian operations The AOI specialist is expanding its global sales organisation with new Asia sales department, and appointing Katsuhiro Eddie Ichiyama as Senior General Manager for the Asian region
Scanfil to sell its plant in Hangzhou, China The board of directors of the Finnish EMS prover has decided to sell the entire share capital of its subsidiary located in Hangzhou, China, for a total of EUR 18.4 million to Hangzhou Cabinet Technology Co., Ltd.
Staying put during the COVID-19 pandemic TPCA (Taiwan Printed Circuit Association) announced the production and sales data for Q1 2020; the output value of Taiwan cross-strait PCB industry totalled NT$136.9 billion (approx. US$4.541 billion) in Q1/2020.
North American PCB industry sales up 1.0% in May Total North American PCB shipments in May 2020 were up 1.0 percent compared to the same month last year. Compared to the preceding month, May shipments fell 3.0 percent.
Sensirion expands with new production site in Hungary In a response to positive business trends and the increasing demand for its existing and new sensors, Sensirion is expanding its production capabilities by establishing a production site in Debrecen, Hungary.
Management Change at the Würth Elektronik eiSos Group After 27 years in the Würth Elektronik Group, Oliver Konz has decided to resign his position as Executive Vice President of the Würth Group and CEO of the Würth Elektronik eiSos Group for personal reasons and leave the company.
Kurtz Ersa inaugurates new production hall In Bestenheid, Germany, the company has just opened its new production and administration building. Following 24 months of construction and furnishing, the company now have access to 4’500 new square metres of space.
PCB industry: 1Q/2020 overshadowed by corona pandemic After a significant drop in sales at the end of last year, PCB manufacturers in the Germany, Austria and Switzerland (DACH) region recorded a sales growth of 16.1 percent in the first quarter of 2020.
Integration of ATLID completes European set of instruments for EarthCARE satellite With the successful integration of the ATLID-Instrument the EarthCARE satellite (Clouds Aerosols and Radiation Explorer) has passed a crucial milestone, as it concludes the "onboarding" of the three European instruments.
ABB Robotics rolls out Lexi’s procurement analytics solution Automation giant, ABB Robotics, is using a big data analytics software solution developed by Lexi Solution AB in Sweden to optimise procurement and engineering processes.
OHB placing the largest clean room in operation After only 14 months of construction, the PLATO hall has now been officially completed at space company OHB’s headquarters in Bremen. With a floor area of around 1,400 square meters, the ISO 8 cleanroom*, which is almost eleven meters high, is the OHB Group’s largest cleanroom facility.
Jenoptik expands military laser rangefinder capabilities in the US JENOPTIK Optical Systems, LLC has announced an expansion of its capabilities for military laser rangefinders (LRF) and is adding custom engineering and testing capabilities to their Jupiter, Florida facility.
Tesla plans battery manufacturing facility in California Electric car manufacturer Tesla plans to build a battery research and manufacturing facility in Fremont, California. N, to be operated around the clock, Under a project dubbed Roadrunner, documents from the city government also reveal a potential 24/7 operation at the facility.
Northrop Grumman awards contracts to Kitron Northrop Grumman has awarded Kitron a production contract for Integrated Communications, Navigation and Identification (ICNI) modules for the F-35 Lightning II program.Load more news