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Romanian Govt Might Grant EUR43M To EADS For Technological Park In Brasov

The Romanian Government might grant EUR43 million in state aid to aerospace giant European Aeronautic Defence and Space Company (EADS) for the development of a technological park on land belonging to Romanian helicopter maker IAR Brasov, for investments worth EUR92 million.
Romanian Govt Might Grant EUR43M To EADS For Technological Park In Brasov
23 aug. 2009, 14:46, English

Official sources told MEDIAFAX the Executive might sign a memorandum with EADS for the park, at the initiative of the Economy Ministry.

“EADS plans to invest in Romania through its affiliate Premium Aerotec GmbH [German Airbus systems maker]. This project entails implementing strategic investments of nearly EUR92 million, of which EUR43 million account for technologic capital for assets, nearly EUR25 million for transfer of technology and training, and the remainder will be ensured by EADS partners and suppliers,” the quoted sources said.

The investment would create 700 new jobs in the high-technology aerospace sector in Romania and would produce in the following ten years a cumulated turnover exceeding EUR700 million.

The EADS proposition is conditioned by the Government’s contribution to this project.

According to Government Decision 1680/2008, the Government is obligated to participate in the completion of the project by granting state aid to implement the investment of Premium Aerotec, which entails eligible costs of EUR43 million. The respective government decision enforces a state aid scheme ensuring durable economic development, and the aid is granted to an initial investment of over EUR30 million that creates 300 new jobs.

The Romanian authorities have to ensure a proper location for EADS within the perimeter owned by IAR Brasov.

“The Government should also accept that EADS and the further business or investments of its suppliers will be eligible over other offset obligations which the EADS group already has or can have in Romania,” the sources said.

The registration of the offset loans related to this project should be completed by a pre-offset agreement between EADS and the Government.

Romanian Prime Minister Emil Boc said in July that EADS Premium Aerotec will invest EUR90 million in the construction of factory specialized in Airbus components in Brasov, central Romania.

He said Premium Aerotec can address the Government to receive state aid worth EUR5 – EUR7 million to fund this investment.