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PR(97)06: EFTA Surveillance Authority decides on state aid for investments in a new enterprise in Surnadal, Norway

11.10.2002

The EFTA Surveillance Authority today decided not to raise objections to State aid which the municipality of Surnadal in Norway has planned to provide in support of investment in a new enterprise, International Pipe System AS.

International Pipe System AS will produce and market plastic tubes and tube-systems to the sanitary sector based on polypropylene and polyetylene. The enterprise is foreseen to have 55 employees.

Of the total project costs NOK 46.6 mill. are investment eligible for regional investment aid. The municipality of Surnadal has decided to provide a grant and a loan under the Industrial Fund of Surnadal in support of the planned investments in International Pipe System AS. The Norwegian Industrial and Regional Development Fund (SND) has also provided a loan and a grant in assistance to the same project under the Regional Risk Loan Scheme and the Regional Investments Grant Scheme.

Taken together the aid provided by Surnadal and SND constitutes a combined volume of aid amounting to 21.6 % of the eligible investment costs. The aid intensity is therefore below the maximum admissible aid level for regional investment aid set at 25 % in target zone B, within which Surnadal is located.

The EFTA Surveillance Authority has therefore concluded that the aid granted by the municipality of Surnadal and the SND to International Pipe System AS qualifies for exemption under the Article 61(3)(c) of the EEA Agreement as aid to facilitate the development of certain economic areas, without adversely affecting trading conditions to an extent contrary to the common interest.

For further information please contact Amund Utne on tel. +32-2-286 18 50.

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