The Commission has concluded that a planned €800,000 aid to Techmatrans in Poland, is compatible with EC Treaty state aid rules. Following an in-depth investigation launched in February 2007, the Commission found that the restructuring plan is sufficient to restore the firm's viability without unduly distorting competition in the Single Market.

Techmatrans produces technological transportation devices and systems for industrial plants in the automotive, metallurgical and construction sectors. It also deals with the repair, service and modernisation of transport technology systems. From 2001 to 2004, the company accumulated major losses because of its low production technology level, low productivity, significant loss making contracts and subsequent liquidity problems.

In August 2006 Poland notified its intention to support the company through a capital injection of €800,000 to be granted by the State owned Industrial Development Agency.

The Commission's in-depth investigation found that the proposed measures comply with the requirements laid down in the Community guidelines on state aid for rescuing and restructuring firms in difficulty. In particular, the Commission considers that the restructuring plan is apt to restore the long-term viability of Techmatrans. Moreover, the Commission found that the aid is limited to the minimum necessary and would not provide the company with extra cash. Finally, the restructuring plan foresees compensatory measures, to ensure that competition will not be unduly distorted by the aid, as the company resigns from one of its activities, thus reducing its market presence. [29 November 2007]