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COM(82)512
Vol.1982/0170

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COMMISSION
OFTHE
EUROPEAN COMMUNITIES
SccrctoriotCOM(82)512 final
Brussels,30July1982
FOROFFICIAL USEONLY
COMMUNICATION FROMTHECOMMISSION TOTHECOUNCIL
Requestforassent,pursuanttoArticle56(2a)oftheECSCTreaty
tothegrantingofaconversion loantoCaledonian AirmotiveLtd.
UnitedKingdom
COM(32)512final

FOR OFFICIAL USE ONLY
COMMUNICATION FROM THE COMMISSION TOTHE COUNCIL
Subject :Request forassent ,pursuant toArticle 56(2a)oftheECSC Treaty
tothegranting ofaconversion Loan toCaledonian Airmotive Ltd.,
United Kingdom .
THECOMPANY No.357
Applicant ■:Caledonian Airmotive Ltd.
Registered Office :Prestwick ,Scotland
Parent company of :Caledonian Aviation Group ,apublic limited company
applicant which also owns British Caledonian Airways Ltd.
Recipient :Caledonian Airmotive Ltd.
Field ofactivity of :TheCompany 'sbusiness istheoverhaul and
recipient refurbishment ofjetengines anditispresently equipped
tooverhaul only oneproduct ,which istheGeneral
Electric Co.CF6-50 jetengine currently used inthe
McDonnell Douglas DC10-30 ,Boeing 747andAirbus A300commercial aircraft .The
company haslimited facility forhigh technology repairs atthis time .Overhaul
operations commenced inFebruary 1980 .

-2-
II.THEPROJECT
Description :Theprojectcomprisestwoindépendantconstituantparts.
beingtheintroduction offacilitiesfortheoverhaul
andrefurbishment ofthePrattandWhitneyJT8Dseries
engine,andexpansionofthehightechnologyrepair
capabilitytoreducethecompany'sdependance on
USsub-contractors .
Cost (t000) :Land
:Buildings
:Plantandma
:Other
:Total
Schedule :1982to1984incl.
|viar|<et :ThePrattandWhitneyJT8engineistheworld'smost
successfulandpopularenginewithsome7.600inoperation
worldwide.Itthereforeprovidesthecompanywithawider
andmorediversemarketbase,sincetherearenumerous
operationsbothinU.K.,EuropeandMiddleEastand
Africa.
Environment :Environ'mentalprotectionmeasuresinaccordance
withcurrentlegislation
Thesectoralandcompetitionaspectsoftheprojecthavebeencloselyexamined;
theydonotmilitateagainstthegrantingoftheloanappliedfor.
Theprojectappearstobeeconomically sound;itwillmakeasignificant
contribution totheredevelopment oftheregionwhichissufferingtheeffects
ofadeclineinECSCindustries .j1,500
chinery 4,706
6,206(+10.9MioECU)

-3-
III .THE REGION
Project LocationPrestwick ,Ayrshire ,Strathclyde region ,
Scot land
Unemployment rate
National aid status ofInNorth Ayrshire ,total unemployment was207.
inJanuary 1982 .Theposition isparticularly
severe formenwith male unemployment nowat
24.3 %.
Special Development area .
Project area
The ECSC industry hasbeen animportant source ofemployment inthe area .
IV.CONFORMITY WITH ARTICLE 56OFTHE ECSC TREATY
ECSC redundancies in :Thedecline iniron andsteel employment has
project area been particularly rapid inStrathclyde inthe
more recent period ,and itisestimated that a
fall ofover 12.000 jobs hasoccurred inthe
region since 1976 .
Jobs tobecreated bytheproject :235
Training :Acomprehensive training plan hasbeen
developed which will provide for onandoffthe
jobtraining .
TheCommission considers that theapplication complies with Article 56 (2a)
ofthe ECSC Treaty and that thenewjobs tobecreated bytheproject are
capable ofabsorbing redundant ECSC workers into productive employment .

-4-
V,CONVERSION LOAN
Loanappliedfor :t2m
Loantobegranted
Interestrebate
JobbasisofinterestrebateTheCommissionhasapprovedaloanof
t2m (about3.518 MioECU)-
orequivalenttotheabovementioned
companyinaccordancewithArticle56
applicationcriteria(OJC82,
29Rarch1979)
3percentagepointsperyearforfive
yearson*.4MioECU.
170 suitableforformerECSC
industryworkers,towhomtheywillbe
tx(feredinpriCi<iy,
VI,COUNCILASSENT
TheCommissionrequeststheCounciltogiveitsassenttotheforegoing
decision-