European Commission announced on Wednesday its approval of Germany’s EUR 4.2 million regional investment aid in construction of Volkswerft Stralsund shipyard, shipbuilding.ru reports. The investigation launched in February 2006 has come to a conclusion that investment should be limited to reconstruction of the warehouses enabling the yard to increase its efficiency. Thus it is not to result in disproportional increase of capacities.
In August 2005 Germany announced its intent to provide regional investment aid to Volkswerft Stralsund. Volkswerft Stralsund is a shipyard located in Stralsund, Mecklenburg-Vorpommern, an assisted area where the standard of living is below average and there is serious unemployment, where state aid may be authorized under Article 87(3)(a) of the EC Treaty. The proposed aid would be for investment to enable the yard to build larger ships (so-called panamax vessels). Investment costs amount to €18.7 million. Germany intends to support the project with €4.2 million, which corresponds to an aid intensity of 22.5%.