EC approves state aid for BorsodChem investment
The European Commission on Friday cleared EUR 45 million in state aid for a EUR 142 mln investment at Hungarian chemicals company BorsodChem’s base in the underdeveloped northeast of the country, analysis site profitline.hu reported.
BorsodChem is building a plant to make aniline, feedstock for methylene diphenyl diisocyanate (MDI), which it already produces at its base in Kazincbarcika (206 km northeast of Budapest).
"The project will contribute to job creation and the economic development of a disadvantaged region. In addition, it will also reduce the risks for the environment caused by the long-distance transportation of aniline, which is a toxic material," the EC said.
"The effects on competition, on the other hand, will be limited given BorsodChem’s limited market position and the strong growth rates in the MDI markets both in Europe and worldwide," it added.
The EC noted that it would have been cheaper for BorsodChem to continue importing aniline from its Chinese parent company Wanhua without the state aid.
MDI is used to make polyurethane products used in the automotive industry and in the construction sector, as well as in products such as appliances, clothing and footwear, profitline.hu said.
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