EU says Polish steelmaker misused state aid
(BRUSSELS) - The European Commission said Wednesday that Polish steel maker Huta Warszawa misused state aid for restructuring in 2003, before it was bought by Arcelor.
Under a restructuring of the Polish steel industry, the company received around 50 million euros (73.5 million dollars) of state aid, mostly in the form of a guarantee for a loan to fund investments in 2003 and 2004.
However, the Commission found that around 30 million euros (44 million dollars) of the loan were used in 2004 to pay off several old debts, which was not part of the restructuring plan.
The Commission calculated that the loan guarantee gave the company an interest subsidy worth two million euros, which it has agreed to pay back.
The company was taken over in 2005 by steel group Arcelor, which itself has since been bought by Mittal Steel to form the world's biggest steelmaker.
Huta Warszawa is one of the bigger producers of steel in Poland and has the capacity to churn out nearly one million tonnes per annum.
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