The European Commission (EC) approved Hungary's €131 million investment aid for the expansion of the MOL petrochemical plant in northern Hungary, the EC announced on Wednesday.
'The EC has found Hungary's €131 million investment aid to MOL Petrolkemia Zrt's Tiszaujvaros plant to be in line with EU State aid rules,' the statement read.
The support will contribute to the development of the northern Hungary region, whilst preserving competition in the single market, according to the Commission.
The oil and gas company MOL will make a total investment of €874 million to help launch the production of polyols and propylene glycols in its existing plant in the northern city of Tiszaujvaros.
Polyol is the main component of polyurethanes, which are used for example for the production of foams for car seats, dashboards, coatings, adhesives and sealants.
Propylene glycol is primarily used in the production of polymers, but is also used in food processing, personal care products and pharmaceuticals.
By Ebru Sengul
Anadolu Agency
energy@aa.com.tr