The European Commission has approved a grant for the extension of a dairy products production facility in Leppersdorf, Germany, operated by Sachsenmilch, a subsidiary of Theo Müller.

The Commission said the aid authorised covers 24.5% of eligible investment costs of €127.7m (US$151.0m). The investment project will create about 144 jobs directly with the firm and about 103 additional jobs in the assisted region.

"The aid intensity of 24.5 % gross will not lead to an undue distortion of competition since the relevant market of dairy products is not in decline," the Commission added.

The aid will be used for the extension of an existing dairy production plant for the production of dairy products, in particular yoghurt, chilled desserts and flavoured milk drinks.