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DOCUMENTS "COM"
COM(80)874
Vol.1980/0274

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COMMISSION
OFTHE
EUROPEAN COMMUNITIES
GenerolSecretariatCOM(80)874 final
Brussels,19December1980
FOROFFICIAL USEONLY
Requestforassent,pursuanttoArt.56.2.a)oftheECSCTreaty
togranting areconversion loantoStrongpacLimited,UnitedKingdom
(Communication fromtheCommission totheCouncil)
C0M(80)874final

Communication tothe Council
.Subject :Request forassent ,pursuant toArt.56.2 .a)oftheECSCTreaty
togranting areconversion Loan toStrongpac Limited ,United Kingdom .
I.THE COMPANYNo.311
ApplicantStrongpac Enka -PLM V.O.F.
Registered OfficeDongen ,TheNetherlands
Parent company of
applicant
BeneficiaryStrongpac Enka -PLM V.O.F. isajoint venture
company formed byAkzo-Enka Netherlands and thePLM
group Malmo ,Sweden in1978 .Theshare capital of
Strongpac asfrom the start isDFL.15.2 M. The
parent companies have decided toincrease the risk-
bearing capital byDFL.6 Min1980 .Strongpac Enka
PLMV.O.F. has asubsidiary ,Strongpac Ltd.,inthe
United Kingdom .
Strongpac Limited
Field ofactivity of
benef iciary The company manufactures and sell-s polyethylene
terephthalate (PET )bottles ,inthe range from
1litre upto2Litres ,forhigh carbonated soft
drinks .
ftucde!aLoi200 ,B-1010 B^ssels -
TelexIcicpl •:3500 «0-
•C0MFMR3P0 ?ili-Télégraphia ce f.OMh -H­

-2-
II.THEPROJECT
Projectdescription :Establishment ofanewPETbottleblowingplant
inCorby,U.K.InordertosupplyCorbywith
thenecessarybasicmaterials (preforms);an
expansionofStrongpac'splantatEmmen,
Netherlands,isalsorequired.TheECSCloan
proposed.below,however,isonlyinsupportof
theCorbyproject.
Projectcostfc'OOOs :Land )
:Buildings )
:Plantandmachinery 2,550
:Other 750
:Total 3,300
Projectschedule Mostoftheinvestmentprojectwillbecompleted
in1982withminorinvestmenttofollowin
1983-85.
Market U.K.andIrishRepublic.Thenewproduction
atCorbywillreplacedirectexportsfrom
TheNetherlands .
Environment :Environmentprotectionmeasuresinaccordance
withrégulations inforce
Theprojectappearseconomically sound;itwillmakeaveryusefulcontribution
totheredevelopment oftheregionconcernedwhichisaffectedbyadeclinein
ECSCindustries.

THEREGION
Projectlocation :Corby-EastMidlandsRegion
Unemployment rate 16.7%inCorby(August1980)
Nationalaidstatusof
projectareaDevelopment Area
TheECSCindustryhasbeenanimportantsourceofemployment
inthearea.
CONFORMITY WITHART.56OFTHEECSCTREATY
ECSCredundancies in
projectareaBSC'sdecisiontoclosedownsteel­
makingatCorbyhasresultedinthe
lossof5,000jobs.
Jcbcreationofproject 65
Training TrainingwillbeprovidedbyStrongpac
TheCommission considersthattherequestcomplieswith
Art.562a)oftheECSCTreatyandthatthenewjob
opportunities offeredbytheprojectarecapableof
absorbingredundant ECSCworkersintoproductive employment .

RECONVERSION LOAN
Loanrequested
Loangrantedfc1.6miLLion
TheCommissionhasapprovedaloan
offc1.6M(about2.92MEUA)
or.equivalenttotheabovementioned
companyinaccordancewithArt.56
operatingpolicies (O.J.No.C82/8
of29March1979).
Interestrebate 3%pointsperyearforfiveyearson
1,280,000 EUA.
Jobbasisofinterestrebate64
C°yNCIL_ASSENT
TheCommissioninvitestheCounciltogiveitsassenttothe
foregoingdecision.