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EU opens state aid probe into planned Polish Dell factory

09 January 2009, 00:35 CET

— filed under: Headline3, Poland, Competition

(BRUSSELS) - The European Commission said on Thursday it had opened an in-depth probe into planned aid from the Polish government for a new Dell factory in Lodz, central Poland.

"The commission has doubts as to its compatibility with the rules on regional aid for large investment projects," Europe's state aid watchdog said in a statement.

Dell Products Poland is due to get 52.7 million euros in aid to help it build a new factory in the poor region of Lodz which is expected to lead to the creation of some 3,000 jobs.

Dell announced on Thursday the closure of a major regional plant in Ireland, slashing 1,900 jobs in the recession-hit former Celtic Tiger, and said it would move production to Poland.

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