IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 08 May 2012 | Removal date: open ended
Still in force

Tax or social insurance relief

On 8 May 2012, the European Commission allowed Polish authorities to grant investment aid to the Mondi Swiecie S.A and the Mondi Corrugated Swiecie Sp. z o.o. The aid worth around EUR 14.14 million (PLN 51.99 million) was used to extend an existing paper manufacturing plant and to build a new cardboard boxes plant in Swiecie, the Kujawsko-Pomorskie region. The total cost of the project amounts to EUR 383.02 million (PLN 1407.02 million).
 
The two beneficiaries belong to the Mondi group - "a leading group in the paper and packaging industry, employing 29'000 employees in 103 operating sites located in 31 countries" (para. 9, letter from the EC to Poland, Brussels 8.5.2012).
 
The first part of the aid used for the extension of the existing plant will allow Mondi Swiecie to manufacture low base weight recycled containerboard, whereas the second share of the state aid will enable Mondi Corrugated Swiecie to produce corrugated board and corrugated boxes.
 
The investment aid was provided in three different forms:

  • an employment grant worth EUR 0.25 million (PLN 0.91 million) was given by the Polish authorities for 70 new positions,
  • a real estate tax exemption worth in total EUR 10.99 million (PLN 40.43 million) and
  • a corporate income tax exemption with an undetermined amount but a maximum aid intensity of 50% - EUR 2.9 million (PLN 10.65 million) have been already paid out.

 
According to the Commission, "the financial support from Poland will be given for investments resulting in the production of corrugated base paper, corrugated board and cardboard boxes. Since these products are subject to trade between Member States, the support given is likely to affect such trade." (para. 61)
 
A state measure in the GTA database is assessed solely in terms of the extent to which its implementation affects the extent of discrimination against foreign commercial interests. The subsidy recipient produces an internationally tradable good. On this metric, the state aid proposed here is discriminatory.
 

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

321 Pulp, paper & paperboard
4808 Paper and paperboard, corrugated (with or without glued flat surface sheets), creped, crinkled, embossed or perforated, in rolls or sheets, other than paper of the kind described in heading 48.03.
480810 Corrugated paper and paperboard, whether or not perforated
480840 Kraft paper, creped or crinkled, whether or not embossed or perforated
480890 Other
4819 Cartons, boxes, cases, bags and other packing containers, of paper, paperboard, cellulose wadding or webs of cellulose fibres; box files, letter trays, and similar articles, of paper or paperboard of a kind used in offices, shops or the like.
481910 Cartons, boxes and cases, of corrugated paper or paperboard
481920 Folding cartons, boxes and cases, of noncorrugated paper or paperboard
481930 Sacks and bags, having a base of a width of 40 cm or more
481940 Other sacks and bags, including cones
481950 Other packing containers, including record sleeves
481960 Box files, letter trays, storage boxes and similar articles, of a kind used in offices, shops or the like

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