ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(77)208
Vol.1977/9006

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COMMISSION
OFTHE
EUROPEAN COMMUNITIES
GeneralSecretariat
COMMUNICATION PROMTHECOMMISSION TOTHECOUNCIL
Requestforanassent,pursuanttoArticle56§2(a)ofthe
ECSCTreaty,forthegrantofareconversion loantothe
SociétéSommerAllibert(France).
COM(77)208final.

COMMUNICATION TOTHECOUNCIL
Subject:Requestforanassent,pursuanttoArticle56§2(a)ofthe
ECSCTreaty,forthegrantofareconversion loantothe
Soci6t3SommerAllibert(Prance).
I.ESSENTIAL INFORMATION
Applicant: SommerAllibertS.A.
Beneficiary : SommerAllibertS.A.
Project: Construction ofaplantfortheproduction
ofplasticproducts
Location: Auchel,Pas-de-Calais
Investment: FF30.3million(+4f5millionEUA)
Loanrequested:FF10million(+1,8millionEUA)
Jobscreated:303ofwhichatleasthalfwillbeofferedin
prioritytoformerECSCworkersoftheNordand
Pas-de-Calaisarea.
Interestreduction:54»000EUAperyearforthefirstfiveyears
(3iopointsperyearontheloanof1,8millionEUA)
II.CONFORMITY WITHARTICLE56§2(a)OFTHEECSCTREATY
ThecoalminingareaNordandPas-de-Calaisextendsabout100km
east-westandabout20kmnorth-southinbothofthedepartments
NordandPas-de-Calais,southofLille.Theregionhasabout1.3
millioninhabitantsorabout30$ofthetotalpopulationof4million
oftheregionNord-Pas-de-Calais.Duringthepasttwocenturies
thepopulationoftheregionhasbeenheavilydependentoncoal
mining.In1947about200.000minerswereinvolvedintheexploitation
oftheregion'scoalreserves.However,by1974thisworkforcehad
beenreducedtoabout50*000workers.Inthearrondissement ofBethune
inwhichtheprojectinquestionwillbelocated,atotalof8.600jobsor14.4^ofthe1962levelwerelostinthecollieriesdueto
reductionofactivitybetween1962and1972.Thisgradualreduction
oftheworkforcelevelinthecollieriesisexpectedtocontinuein
1976and1977,andtheprojectinquestionwillcreateanewactivity
capableofreabsorbingatleastI50.formercoalminersintoproductive
employment.Tothiseffectthecompanyhaspreparedatripartite *
convention withtheHouilitresdu.bassinduNord-Pas-de-Calaisand
theDirectionG£n£raleduTravailetdelaMain-d'oeuvre concerning
hiringasufficientnumberofminersforthenewplant.
Provisiona Iaddress:200,ruedelaLoi.1040Brussels–Telephone350040-358040–Télégraphieaddress:«C0MEURBrussels»–
Telex:.COMEURBRU 21877.

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III.THEUHTERTAKDTQ
Description :. SommerAllibertS.A.
Legalstatus: LimitedCompany
Administrative Headquarters :Neuilly-sur-Seine
Registeredcapital: FF55«032.500.
IV.THEPROJECT
Theprojectconcernsthecreationofanewplantasanextension
oftheindustrydivisionofSommerAllibert.Thenewplantwill
"beusedtodevelopandimplementanewmouldingtechniqueforthe
productionofplasticpartstobesoldtotheautomotiveindustry
andtoothermajormanufacturers ofconsumerdurables(radioand
television,refrigerators ,etc.)
Theplantwillbelocatedonasiteofabout60.000m2.
ThefixedassetsoftheprojectamountingtoFF16.650.000willbe
ownedbySommerAllibertS.A.,whilemachineryandequipment
amountingtoFF13.658.000willbethepropertyofVyncoluxeS.A.
a99t9%ownedsubsidiaryofAllibertExploitationS.A.,whichisagaina100$ownedsubsidiaryofSommerAllibertS.A.
Theprojectwillcontributetoanimprovementoftheproduction
structureoftheSommerAllibertgroupbythedevelopmentofa
specialisedproductionunitatAuchel,whileproductioncapacity
atM£ruafterimplementation oftheAuchelplantwillbeconcentrated
onotherproducts.
V.THEMARKET
TheSommerAllibertindustrydivisionisbasingitsproduction on
ordersfrommajorcustomerscoveringtheirneedsforperiodsof
betweenthreemonthsandayear.ThecustomersarethemajorFrench
automobilemanufacturers andmanufacturers ofconsumerdurables.
Theexpectedincreaseindemandforautomobilesofabout3$inthe
comingyearsandtheexpectedincreaseintheuseofplasticmaterials
inautomobilesareconsideredtobeacceptablejustifications forthe
capacityincreaseimpliedbytheprojectatAuchel.
VI.SOCIALASPECTS
The303jobswillbecreatedoverthreeyearsstartingattheendof
1976.ByJuly1977atotalof174jobsareexpectedtobefilled,
*whiletheremaining129jobsareexpectedtobefilledbytheendof
1978.The303jobswillconsistof30forskilledworkers,250for
"semi-skilled workersand23jobsattheadministrative andtechnical
stafflevel.
/

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Afull-timetrainingprogrammeforthesemi-skilled workerswill
beprovided "bythecompanyafterwhichtheywillstartworkatthe
Auchelplant.Duringthefirsttwomonthstheyareexpectedto
"beabout50$productive.
Theskilledworkerswillbetrainedbythecompanyatitsvarious
plantsbeforestartingworkingattheAuchelplant.Foremenwill
receivetwomonthsoffulltimetrainingatthecompany'sMeruplant.
VII.EmROMEfTTAL ASPECTS
ThefirmhasbeenabletoimprovetheairqualityatitsMeruplant
considerably inrelationtosimilarproductionprocessesino"fcher
plants.ThenewplantofAuchelwillbeequippedwithairpurification
facilitieswhichwillbesimilartothoseattheMeruplant.
VIII.FHTMCIAL ASPECTS
Thesummarised financeplanfortheprojectin1976-1979isasfollows:
Requirements '000PPResources '000FF
Site 700 SOFIREMloan 2.000
Plantbuildings 15.950 ECSCloan 10.000
Equipment 13.658Directfinancingby
HoldingSommerAllibert 16.650
fixedassets 30.308Regionaldevelopment premium6.7OO
Workingcapital 5.450Cashflow5.4O8
35.758
Repaymentofloan 5.000
Total 40.758 Total 40.758
With46%ofthefinancialrequirements beingprovidedbythefirm's
ownresources,thefinanceplancanberegardedassatisfactory .
./

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IX.CONCLUSTOITS
(a)TheCommissionconsidersthattherequestcomplieswithArticle56§2(a)oftheECSCTreatyandthattheproposed
investmentiseconomically sound.Inconsequence,the
CommissionhasapprovedaloantoSommerAllihertS.A.to
financetheproject "byitssubsidiaryVyncoluxeS.A.at'
Auchelforamaximumamountof10millionFF(fcl#8millionEUA)
oritsequivalentvalue.Theinterestwillbereduced
"by54.000EUAperyearforthefirstfiveyearsafterthe
paymentorthepaymentsoftheloan.
(t>)TheCommissioninvitestheCounciltogiveitsassenttothe
foregoingdecision.
O