The European Commission has approved a PLN 40.5 million (c. €10 million) loan from Poland for the restructuring of Tarchominskie Zakłady Farmaceutyczne "POLFA" S.A.
POLFA is a large pharmaceutical company, manufacturing basic pharmaceutical products for human and veterinary use.
According to the Commission, the aid is compatible with 2004 Rescue and Restructuring Guidelines as:
- the plan assumes long-term viability of the company
- the aid amount is limited to the minimum necessary to implement the restructuring plan
- POLFA has agreed to withdraw from the veterinary and active substances market to avoid any distortion of competition
- POLFA has a small share of the Polish and European market
- POLFA has not received aid for rescue or restructuring purpose in the last 10 years
According to Competition Commissioner Neelie Kroes, the POLFA case illustrates how the Commission's 2004 Rescue and Restructuring Guidelines and the Temporary Framework complement each other, as the latter cannot be applied to companies that were in difficulties before 1 July 2008.
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The original publication date for this article was 22/12/2009.