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DOCUMENTS "COM"
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Vol.1980/0191

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COMMISSION
OFTHE
EUROPEAN COMMUNITIES
GeneralSecretariatCOM(80)599final
BrusseIs20^October1980
FOROFFICIAL USEONLY
COMMUNICATION TOTHECOUNCIL
Requestforassent,pursuanttoArt.56,2a)ofthe,ECSC
Treatytograntingareconversion loantoControlData
Limited,U.K.
COM(8o)599final

COMMISSION
OFTHE
EUROPEAN COMMUNITIES
Internaldocument
Communication totheCouncil
Subject.:Requestforassent,pursuanttoArt.56.2.a)oftheECSCTreaty
tograntingareconversion loantoControlDataLimited,U-.K.
I.THECOMPANY *N°:298
Applicant ControlDataLimited
Registered OfficeLondon •'
Parentcompanyof
applicant100%ownedbyControlDataCorporation ,
Minneapolis ,U.S.A.
BenuficiaryControlDataLimited
Fie;dofactivityof
beneficiaryManufacture ofcomputerdiskpacksandmagnetictape,
dataprocessingcardsandstationery .Furniture;
bureauxservices,educationcentresandrentalof
equipment .
Ο.

-2-
II.THE PROJECT
Project description :Expansion ofproduction facilities forallproducts ;
butprimarily disk packs ,toinclude capability
forproduction oflatest generation ofpacks ,
using newer technology .
Project cost :Land ~
:Buildings fc2,155,000
:Plant >andmachinery 5,505,000
:Other -
:Total 7,660,000
Project schedule :Project will beimplemented within three years
Market :Allproducts from the Wales factory will besold
worldwide except forthe'U.S.A. through marketing
divisions ofControl Data Corporation .However ,
more than 95% will besold within Europe .
Envi ronment :Environment protection measures inaccordance
with régulations inforce .
Theproject appears economically sound ;itwill make avery useful contribution
totheredevelopment oft(heregion concerned which isaffected byadecline in
ECSC industries .
Ο.

III.THEREGION-3-
ProjectLocation Brynmawr,Gwent,SouthWales
Unemployment rate 16.7%intheEbbwValetravel-to-workarea
Nationalaidstatusof
projectarea "~SpecialDevelopment Area
TheECSCindustryhasbeenadominantemployerinthearea.
IV.CONFORMITY WITHART.56OFTHEECSCTREATY
ECSCreduncancies in
projectarea:JoblossesatB.S.C.EbbwValefrom1973to
March1980amountedto5,400
Jobcreationofproject'■401'..'•
Traimng••TrainingwillbeprovidedbyControlDataLimited
TheCommissionconsidersthattherequestcomplieswithArt.562a)of
theECSCTreatyandthatthenewjobopportunities offeredbytheproject
arecapableofabsorbingredundant ECSCworkersintoproductiveemployment.
V.RECONVERSION LOAN
Loanrequested fc3.8million
Loangranted TheCommissionhasapprovedaloanof
fc3.8million(about6.33 MEUA)or
equivalenttotheabovementionedcompany
inaccordancewithArt.56operatingpolicies
(O.J.No.C82/8of29March1979).

-L-
Interestrebate :3Zpointsperyearforfiveyearson4»8MEUA
Jobbasisofinterestrebate:240
VI.COUNCILASSENT
TheCommissioninvitestheCounciltogiveitsassenttotheforegoing
decision.