# EUR-Lex - 12005SAN07/APP/A - EN

Important legal notice

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# 12005SAN07/APP/A

**Act concerning the conditions of accession of the Republic of Bulgaria and Romania and the adjustments to the Treaties on which the European Union is founded - Appendix A to Annex VII **

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Official Journal L 157 , 21/06/2005 P. 0362 - 0365 *

Appendix A to Annex VII

Restructuring of the Romanian steel industry (referred to in Annex VII, Chapter 4, Section B)

PART I

COMPANIES BENEFITING FROM STATE AID UNDER THE STEEL RESTRUCTURING PROGRAMME OF ROMANIA

- Ispat Sidex Galaţi

- Siderurgica Hunedoara

- COS Târgovişte

- CS Reşiţa

- IS Câmpia Turzii

- Donasid (Siderca) Călăraşi

PART II

TIMETABLE AND DESCRIPTION OF CAPACITY CHANGES [1]

| Facility | Capacity change (tonnes) | Date of cessation of production | Date of permanent closure |

Siderurgica Hunedoara | Wire rod No 1 | –400000 | 1995 | 1997 |

| Wire rod No 3 | –280000 | 1998 | 2000 |

| Medium sections | –480000 | 1st quarter 2008 | 2nd quarter 2008 |

IS Câmpia Turzii | Wire rod No 1 | –80000 | 1995 | 1996 |

CS Reşiţa | Light sections | –80000 | 2000 | 2001 |

| Rail wheels | –40000 | 1999 | 2000 |

| Heavy sections | –220000 | 4th quarter 2007 | 2nd quarter 2008 |

| Medium and special sections | –120000 | 4th quarter 2006 | 4th quarter 2007 |

Donasid (Siderca) Călăraşi | Medium sections | –350000 | 1997 | 1999 |

| Net capacity change | –2050000 | | |

PART III

RESTRUCTURING BENCHMARKS

1. Viability

Taking into account the special accounting rules applied by the Commission, each benefiting company shall achieve a minimum annual gross operating result of turnover of 10 % for non‐integrated steel undertakings and 13,5 % for integrated steel mills and a minimum return of 1,5 % of turnover on own capital no later than 31 December 2008. This shall be verified in the independent evaluation carried out annually between 2005 and 2009, as provided for in Chapter 4, Section B, paragraph 13, of Annex VII.

2. Productivity

An overall productivity comparable with that attained by the EU steel industry shall be achieved gradually by 31 December 2008. This shall be verified in the independent evaluation carried out annually between 2005 and 2009, as provided for in Chapter 4, Section B, paragraph 13, of Annex VII.

3. Cost reductions

Particular importance shall be attached to cost reductions as one of the key elements of viability. These shall be fully implemented, in accordance with the business plans of the benefiting companies.

PART IV

INDICATIVE LIST OF INFORMATION REQUIREMENTS

1. Production and market effects

- monthly production of crude steel, semi-finished and finished products by category as well as by product range,

- products sold, including volumes, prices and markets; breakdown by product range.

2. Investments

- details of investments realised,

- date of completion,

- the costs of the investment, the sources of finance and the sum of any related aid involved,

- the date of aid payment if any.

3. Workforce reductions

- number and timing of job losses,

- evolution in employment at beneficiary companies (distinguishing between direct and indirect employment),

- evolution of employment in the national steel sector.

4. Capacity (with regard to the entire steel sector in Romania)

- date or expected date of cessation of production of capacities expressed in MPP (MPP being the maximum possible annual production that can be obtained in ordinary working conditions) to be closed, and description of these,

- date (or expected date) of dismantling, as defined in Commission Decision No 3010/91/ECSC on the information to be furnished by steel undertakings about their investments [2], of the installation concerned and details of the dismantling,

- date (or expected date) of introduction of new capacities and description of these,

- evolution in total capacity in Romania of crude steel and finished products per category.

5. Cost

- breakdown of costs and their respective evolution in the past and in the future, in particular for workforce cost saving, energy consumption, raw material cost saving, accessories and external services reduction.

6. Financial performance

- evolution of selected key financial ratios to ensure progress is being made towards viability (the financial results and ratios must be provided in a way which allows comparisons with the company's financial restructuring plan and must include the Commission's viability test),

- details of taxes and duties paid including information on any deviations from normally applicable fiscal and customs rules,

- level of financial charges,

- details and timing of the paying out of aid already granted in accordance with the terms of the Act,

- terms and conditions of any new loans (irrespective of source).

7. Creation of a new company or new plants incorporating capacity extensions

- identity of each private and public sector participant,

- sources of their financing for the creation of the new company or new plants,

- terms and conditions of the private and the public shareholders' participation,

- management structure of the new company.

8. Ownership changes.

[1] Capacity reductions shall be permanent as defined in Commission Decision No 3010/91/ECSC of 15 October 1991 (OJ L 286, 16.10.1991, p. 20).

[2] OJ L 286, 16.10.1991, p. 20.

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