The European Commission has approved investment aid of 500,000 eur for the Slovakian shipbuilding company Slovenske lodenice Komarno which operates shipyards on the Danube river in the south of Slovakia.
The aid will form part of a 2 mln eur investment project to optimise the shipbuilding yard's layout and make its production processes less dependent on the water level of the Danube.
The commission said that, under EC Treaty state aid rules
, the investment is compatible with the single market and will not distort competition.
EU competition commissioner Neelie Kroes said in a statement: 'The investment project will enhance the competitiveness of this yard. It complies with the stringent conditions applicable to investment aid in the shipbuilding sector.'