8.2.91 Official Journal of the European Communities No C 33/11 
11. "Where appropriate, funding may be disbursed 
through a global grant to one or more intermediaries 
with the necessary expertise, designated for that 
purpose by the responsible authorities in each 
Member State in agreement with the Commission. 
V. IMPLEMENTATION 
12. Member States wishing to benefit from the 
programme are invited to present operational 
programmes within six months of the date of publi­
cation of this notice. Proposals for operational 
1. On 5 July 1990 the Commission registered a 
request for a negative clearance or exemption submitted 
by Stora Kopparbergs Bergslags AP (hereafter Stora) in 
respect of the acquisition of Feldmuhle Nobel AG 
(hereafter Feno). 
2. Stora is a Swedish group present in the following 
sectors: paper and pulp, packaging materials, energy, 
forestry and timber, flooring manufacture, door and 
window manufacture, kitchen furnishings, food 
packaging and packaging systems. Its worldwide 
turnover in 1989 was ca. SKR 42 000 million (MECU 
5 700) with ca. 48 % (MECU 2 700) of its activities in 
pulp and paper. 
3. Feno is a German group present in the following 
sectors: paper and paperboard, heating equipment, 
explosives, pipes, cast iron and steel products, kitchen 
equipment and tools. Its worldwide turnover in 1989 was 
DM 9 500 million (MECU 4 647) with 50 % (DM 4 860 
million, MECU 2 377) of its activities in paperboard and 
paper. As far as pulp is concerned, Feldmuhle, a 
subsidiary of Feno, and Stora have each a 50 % partici­
pation in the Swedish pulp producer Norrsundet, but 
Feldmuhle uses its pulp from this source essentially for 
its own mills rather than selling in the pulp market. programmes received after this date need not be 
taken into consideration by the Commission. 
13. All correspondence relating to this notice should be 
addressed to: 
Mr. E. Landab.uru, 
Director General, 
Directorate-General for Regional Policy, 
Commission of the European Communities, 
200, Rue de la Loi, 
B-1049 Brussels. 
4. In the abovementioned merger, the relevant EEC 
market concerns products of the paper industry and 
particularly newsprint, lightweight coated magazine 
paper (LWC), supercalendered paper (SC), fine papers, 
self-copying papers, cartonboard and packaging papers. 
5. Newsprint is used for printing newspapers and is 
universally recognized as a distinct market. With annual 
sales of 690 000 tonnes in the common market, Stora's 
EEC market share amounts to 11 %. In this quantity are 
included 130 000 tonnes exported to the FRG by Hylte-
Bruks, a 75-25 % joint venture of Stora and Feldmuhle. 
After the acquisition of Feldmuhle, an additional 103 000 
tonnes of newsprint, Feldmiihle's sales from the Langer-
brugge mill, will bring the consolidated EEC market 
share of Stora to about 13 %. 
6. LWC is used for printing magazines and cata­
logues, for direct mail, for commercial printing like 
inserts and supplements in magazines or newspapers and 
for printed advertising media like promotional publi­
cations. Feldmuhle is one of the leading producers in the 
EEC and worldwide. With annual sales of 590 000 
tonnes of LWC in the common market, Feldmiihle's 
EEC market share amounts to some 20 %. It should be 
noted that Feldmiihle's annual capacity will be increased 
by an additionnal 245 000 tonnes, when the new Euro-5 
plant in Corbehem will come on stream by the end of 
1990. Stora does not produce LWC. Notice pursuant to Article 19 (3) of Council Regulation No 17 concerning a request for a 
negative clearance or an exemption under Article 85 (3) of the EEC Treaty — Case No 
IV/33.618 Stora-Feldmuhle 
(91/C 33/06) 
No C 33/12 Official Journal of the European Communities 8.2.91 
7. A limited substitutability exists between LWC and 
other types of magazine paper such as supercalendered 
(SC) paper which may also be used for rotogravure and 
offset printing. SC is an uncoated paper inferior to, and 
cheaper than LWC. With annual sales of 260 000 and 
70 000 tonnes respectively in 1989, Feldmiihle and Stora 
occupy jointly some 19 % of the EEC SC-market. 
8. Fine papers are quality papers used for a variety of 
purposes. They can be wood-free, wood-containing, 
uncoated, one-side coated or double-side coated. Supply 
and demand in this sector are quite complex. If the total 
volume of the EEC market for this sector is estimated at 
some 7 385 000 tonnes, the consolidated market share of 
Stora and Feldmiihle amounts to ca. 7,25 % (with 
annual deliveries of respectively 260 000 and 263 000 
tonnes in 1989). 
9. Self-copying or 'carbonless' papers probably 
constitute a distinct product. Stora does not produce this 
type of paper. The EEC market share of Feldmiihle in 
this sector amounted to some 11 % (ca. 7 200 tonnes) in 
1989. 
10. Cartonboard is used for cardboard boxes and 
other packaging purposes. With an annual capacity of 
330 000 and 315 000 tonnes respectively, Feldmiihle and 
Stora occupy jointly some 16 % of the EEC market in 
1989. 
11. Finally, sack and craft paper is used for the fabri­
cation of paper bags and other packaging products. Feldmiihle is not active in this sector. If the total volume 
of the EEC market for these products is estimated at 
738 000 tonnes, the market share of Stora in 1989 
amounted to some 17 % (about 131 000 tonnes). 
12. The merging parties argue that Article 85 of the 
EEC Treaty does not apply in this case, since the 
operation amounts to a concentration by acquisition of 
assets. They argue further that Article 86 of the EEC 
Treaty is not applicable, since the market shares 
necessary for the Commission to establish a dominant 
position are not attained. 
13. On the basis of the facts summarized above, the 
Commission proposes to take no action under Articles 85 
or 86 of the EEC Treaty. As the operation in question 
was agreed before the entry into force, on 21 September 
1990, of Council Regulation (EEC) No 4064/89 on the 
control of concentrations between undertakings, the 
Regulation does not apply according to its Article 25 (2). 
14. This procedure may be closed with the sending by 
the Directorate-General for Competition of an adminis­
trative letter. The Commission invites interested third 
parties to send their observations within one month from 
the date of publication of this notice, to the following 
address quoting the reference TV733.618 Stora-
Feldmiihle': 
Commission of the European Communities, 
Directorate-General for Competition, IV/C-l, 
200, Rue de la Loi, 
B-1049 Brussels.