Portuguese subsidy of Conti plant ruled OK

BRUSSELS, Belgium (Aug. 13)—Portugal's payment of a $10 million subsidy to help Continental A.G. expand tire production at its Continental-Mabor subsidiary in Portugal was within European Union rules, the European Commission ruled. The EC had investigated Swedish government complaints that Portugal had illegally encouraged Conti to close its plant in Gislaved, Sweden, and relocate production to the Lousado, Portugal-based unit. The German group plans to close its Continental Gislaved Dack facility in southern Sweden this summer with the loss of 774 jobs. The Portuguese aid measures complied with previously authorized aid schemes and were well below the allowed regional aid ceiling, according to an Aug. 9 EC statement.