Brussels, 21 June 2024
The European Commission has approved, under EU State aid rules, a €35 million Hungarian measure in favour of Hyginett Magyar-Amerikai Higiéniai Cikkeket Gyártó Kft (‘Hyginett’), which is part of the Procter and Gamble (P&G) group.
The measure will take the form of a €35 million direct grant. It will support Hyginett’s €135.3 million investment for the expansion of its existing toothbrush manufacturing plant in Gyöngyös, incentivising the company to locate its investment in Hungary. The project is expected to contribute to the economic development of Gyöngyös, in particular by creating more than 170 direct jobs with an estimated potential for up to around 800 indirect jobs.
The Commission assessed the Hungarian measure under EU State aid rules, in particular Article 107(3)(a) of the TFEU, which enables Member States to grant aid to promote the economic development of the most disadvantaged areas in Europe, and the Regional Aid Guidelines.
The Commission found that the measure will contribute to the economic development, employment and competitiveness of a disadvantaged region. In addition, the Commission concluded that the aid is necessary and appropriate to realise the expansion of the plant. Furthermore, the aid has an incentive effect, as the beneficiary would not have carried out the project in the European Economic Area without the public support. Finally, the Commission found that the measure is proportionate as it is limited to the minimum necessary to trigger the investment in Hungary. In particular, the support will not exceed the maximum intensity set out in the Hungarian regional aid map, and has a limited impact on competition and trade within the EU.
On this basis, the Commission approved the Hungarian measure under EU State aid rules.
The non-confidential version of the decision will be made available under the case number SA.103309 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved.