The Commission confirms that Componenta did not receive any illegal state aid from Karkkila

Componenta Corporation announced on 18 December 2008 that the Court of First Instance of the European Communities (CFI) reversed the Commission’s decision of 20 October 2005 regarding an alleged state aid. The Commission had found in the mentioned decision that the State of Finland - namely the City of Karkkila - would have assigned unlawful state aid to Componenta Corporation in the amount of EUR 2.4 million in connection with a share purchase transaction in 2003, whereby the City of Karkkila purchased 50% of the shares in Karkkilan Keskustakiinteistöt Oy from Componenta Corporation.  

Following the CFI’s judgment, the Commission reassessed the matter due to the fact that the CFI considered the Commission’s decision of 20 October 2005 insufficiently reasoned. Componenta Corporation has today been informed that the Commission has on 20 April 2011 rendered a new decision in the matter, now confirming that Componenta Corporation did not receive any state aid from the City of Karkkila. On the contrary, the Commission finds in its new decision that the share purchase transaction between the City of Karkkila and Componenta Corporation was market-based and that the purchase price paid by the City of Karkkila was in accordance with the market value of the object of the purchase.

Componenta Corporation is pleased with the Commission’s new decision which ends the long lasting proceedings in the matter in favour of the company and the State of Finland.

Helsinki, 27 April 2011

COMPONENTA CORPORATION

Heikki Lehtonen
President and CEO

Further information:

Heikki Lehtonen
President and CEO
tel. +358 10 403 00

Componenta is a metal sector company with international operations and production plants located in Finland, Turkey, the Netherlands and Sweden. The net sales of Componenta were EUR 452 million in 2010. The Group employs approx. 4,400 people. Componenta's shares are quoted on the NASDAQ OMX Helsinki. Componenta specializes in supplying cast and machined components and total solutions made of them to its global customers who are manufacturers of vehicles, machines and equipment. 

Componenta Corporation
Panuntie 4
FI-00610 Helsinki, Finland
Tel. +358 10 403 00
Fax +358 10 403 2721
www.componenta.com