Commission approves €63 million Portuguese measure to support Repsol Polímeros in diversifying production

The European Commission has approved, under EU State aid rules, a €63 million Portuguese measure to support Repsol Polímeros in diversifying the production of its existing petrochemical complex in Sines, Alentejo.

The measure aims at supporting the expansion of the production facility in Repsol Polímeros’ petrochemical complex, allowing the company to produce new types of polymer products. The project is expected to contribute to the economic development of Alentejo, in particular by creating 75 direct jobs and around 300 indirect jobs. The aid will take the form of a corporate income tax credit.

The Commission assessed the Portuguese measure under EU State aid rules, in particular under Article 107(3)(a) TFEU, which allows Member States to promote the economic development of the most disadvantaged areas, and the Regional State Aid Guidelines 2014-2020. The Commission found that the aid is necessary for the realisation of the project and has an incentive effect, as the beneficiary would not carry out the relevant investment without the public support. The Commission also found that the aid is proportionate as it is limited to the minimum necessary to make that investment happen. In particular, the support will not exceed the maximum amount of aid as set out in the Portuguese regional aid map, as amended in 2016 and prolonged in 2020. Finally, the Commission found that the aid is appropriate to support regional development, without adversely affecting trading conditions to an extent contrary to the common interest. On this basis, the Commission approved the Portuguese measure under EU State aid rules.