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 Gala ţi
— Siderurgica Hunedoara
— COS Târgovi şte
— CS Re şiţa
— IS Câmpia Turzii
— Donasid (Siderca) C ălăraşi
PART II
TIMETABLE AND DESCRIPTION OF CAPACITY CHANGES (1)
FacilityCapacity
change
(tonnes)Date of cessation of produc-
tionDate of permanent closure
Siderurgica
HunedoaraWire rod No 1 –400 000 1995 1997
Wire rod No 3 –280 000 1998 2000
Medium sections –480 000 1st quarter 2008 2nd quarter 2008
IS Câmpia Tur-
ziiWire rod No 1 –80 000 1995 1996
CS Re şiţa Light sections –80 000 2000 2001
Rail wheels –40 000 1999 2000
Heavy sections –220 000 4th quarter 2007 2nd quarter 2008
Medium and
special sections–120 000 4th quarter 2006 4th quarter 200721.6.2005 EN Official Journal of the European Union L 157/189
FacilityCapacity
change
(tonnes)Date of cessation of produc-
tionDate of permanent closure
Donasid
(Siderca) C ălăr-
aşiMedium sections –350 000 1997 1999
Net capacity
change–2 050 000
(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).
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 than31 December 2008. This shall be verified in the independent evaluation carried out annually between 2005 and2009, 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 and2009, 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.L 157/190 EN Official Journal of the European Union 21.6.2005
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 (1), 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 financialrestructuring plan and must include the Commission's viability test),21.6.2005 EN Official Journal of the European Union L 157/191
(1) OJ L 286, 16.10.1991, p. 20.
— 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 Protocol,
— 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.L 157/192 EN Official Journal of the European Union 21.6.2005