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EU rejects €26 million state aid to MAN truck manufacturer (updated)

UPDATE 1-EU rejects €26 million state aid to MAN truck manufacturer

Adds the company is part of Volkswagen Group in paragraph 2, context in paragraph 4

- The European Commission said on Monday the €26 million ($29.15 million) aid approved by the Polish government to truck manufacturer MAN Trucks to expand a factory in Niepolomice violated EU state aid rules.

Poland failed to prove that the aid was decisive for MAN Trucks, which is owned by Germany's Traton SE 8TRA.DE, a unit of Volkswagen VOWG.DE, to locate its investment in Poland, the Commission said, adding the amount was not "proportionate".

"Therefore, Poland cannot disburse the aid," the Commission said in a statement.

State aid in the 27-country bloc is closely scrutinized by the European Commission to make sure individual countries do not grant an unfair advantage to locally operating companies.

($1 = 0.8920 euros)


(Reporting by Inti Landauro
Editing by Tomasz Janowski)

((Inti.Landauro@thomsonreuters.com;))

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