COMMISSION CLEARS STATE AID FOR GREEK STEEL MILL.
Investment aid to help Greek iron and steel company Sovel's rolling mill in Almiros near Volos has been cleared by the European Commission as compatible with EU rules governing state aid in the iron and steel industry, it confirmed though a statement on May 28. The Euro 7.46 million investment aid package is being granted in the form of subsidies, leasing subsidies and interest rebates. Euro 750,000 of the total comes as an interest subsidy. The aid will go towards investment worth Euro 17.26 million (5.6 billion Drachmas) in a new billet re-heating furnace, complete automation of the principal rolling plant in addition to new systems of control of the rolling parameters, an installation of measuring and bar packing and auxiliary facilities.The Commission says it has checked the compatibility of the aid with the rules of the EU applicable to aid for iron and steel companies. These rules grant investment aid assigned to iron and steel companies until December 31, 2000, as long as the firm is based in Greece; the aid is granted on the basis of a regional aid scheme; the total amount of the aid does not exceed...
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