The European Commission has approved €47 million German State aid for Vetter Pharma, a German pharmaceutical service provider. The aid will support the establishment of a new plant for the aseptic filling of injectable medicine into vials and syringes in Saarlouis. The measure will contribute to the  EUs priorities of job creation and regional development, as well as to ensuring affordable medicines in line with the Pharmaceutical Strategy for Europe.

The German measure

Germany notified the Commission of its plan to support Vetter Pharma to establish a new aseptic filling plant in Saarlouis, in the Saarland. The plant will provide aseptic filling as a service for pharmaceutical companies and will be built on parts of the site of the former Ford plant in Saarlouis. Aseptic filling is a specialised manufacturing process used to maintain the sterility of pharmaceutical products during their transfer into sterile containers.

The aid will take the form of a direct grant of €47 million. The entire project is expected to create at least 1 200 direct jobs, as well as further indirect jobs. The plant will be located in an area eligible for regional aid under Article 107(3)(c) of the Treaty on the Functioning of the EU (‘TFEU).

The Commissions assessment

The Commission assessed the measure under EU State aid rules, in particular Article 107(3)(c) TFEU, which allows Member States to promote the economic development of the most disadvantaged areas of the EU, and the 2022 Regional Aid Guidelines.

The Commission found that:

  • The measure will contribute to job creation in, as well as the economic development and the competitiveness of a disadvantaged area. In particular, the measure will create at least 1 200 direct jobs, and further indirect jobs.
  • The aid has an incentive effect, as the beneficiary would have carried out the project in a different, non-assisted region without the public support.
  • The measure has a limited impact on competition and trade between Member States. In addition, it is appropriate for Vetter Pharma to set up the new plant in Saarlouis, as this contributes to the development of the region.
  • The aid is proportionate and limited to the minimum necessary to incentivise the investment in Saarlouis. It will not exceed the maximum allowed aid amount for the project calculated based on the German regional aid map. 

On this basis, the Commission approved the German measure under EU State aid rules.

Background

Europe has always been characterised by significant regional disparities in terms of economic well-being, income and unemployment. Regional aid aims to support economic development in disadvantaged areas of Europe, while ensuring a level playing field between Member States. 

In the 2022 Regional Aid Guidelines, the Commission sets out the conditions under which regional aid may be considered compatible with the internal market and establishes the criteria for identifying the areas that fulfil the conditions of Article 107(3)(a) and (c) of the TFEU. On this basis, Member States notified their regional aid maps to the Commission for approval.

On 15 December 2021, the Commission approved the German regional aid map for granting regional aid from 1 January 2022 to 31 December 2027. On 30 October 2023 and on 3 September 2024 the Commission approved amendments to the German regional aid map.

The non-confidential version of todays decision will be made available under the case number SA.118989 in the State aid register on the Commissions competition website once any confidentiality issues have been resolved. New publications of State aid decisions on the internet and in the Official Journal are listed in the Competition Weekly e-News.