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DOCUMENTS "COM"
COM(82)507
Vol.1982/0169

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COMMISSION
OFTHE
EUROPEAN COMMUNITIESCOM(82)507final
Brussels,30July1982
Secretorio!
FOROFFICIAL USEONLY
COMMUNICATION FROMTHECOMMISSION TOTHECOUNCIL
Requestforassent,pursuanttoArticle56(2a)oftheECSC
Treatytothegrantingofaconversion loantoArbed-Finanz
Deutschland GmbH(AFDG),FederalRepublicofGermany
C0MC82)507final

FOR OFFICIAL USE ONLY
COMMUNICATION FROM THE COMMISSION TOTHE COUNCIL
Subject :Request forassent ,pursuant toArticle 56(2a)oftheECSC Treaty
tothegranting ofaconversion loan toArbed-Finanz Deutschland
GmbH (AFDG ),Federal Republic ofGermany .
I.THECOMPANY No.363
Applicant :Arbed-Finanz Deutschland (AFOG )
Under aco-operation agreement dated 14May 1981 between Neunkircher
Eisenwerk AG (NE)-asubsidiary ofRochling-Burbach GmbH ,which inturn
belongs totheArbed group -andIndustrie-Uerke Karlsruhe Augsburg AG,
IWKA Stahlf laschen GmbH wasestablished with aview tosetting upa
production shop tor -high pressure gascylinders andpressure tanks at
NE'sHomburg works .Theproject will create 277secure jobs inHomburg
andmake asubstantial contribution tothedevelopment ofsteel processing
inthe Saarland .
Tofinance theproject ,Rochling-Burbach GmbH hasearmarked guaranteen
credits which itwill make available toIWKA Stahlf laschen GmbH inagree­
ment with theguarantors asproprietor 'sloans .Since theacceptance of
credits extended bywayofguarantee isgoverned bythearticles ofasso­
ciation ofArbed-Finanz Deutschland GmbH (AFDG )and since the latter has
totransmit thecredit onidentical terms toRochling-Burbach GmbH ,the
formal applicant forthe ECSC loan isArbed-Finanz Deutschland GmbH .
Recipient :IWKA Stahlf laschen GmbH
Field ofactivity of :Manufacture and sale ofextruded ,pressed and
recipient punched components ,inparticular metal goods ,
pressure gascylinders ,large containers and .
pressure tanks .

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II.THEPROJECT
Description :Theaimoftheprojectistoopenanewproduction
shopattheHomburgworksofNeunkircher Eisenwerk
AG.Theplantwillbeinstalledinworkshops
vacatedasaresultoftheshutdownofseamless
tubeproduction andonwhichIWKAStahlflaschenGmbH
hastakenalonglease.
CostDM
:Land 3
:Buildings î^300.000
:Plantandmachinery25,125,000
:Other 1,575.000
:Total 27.000,000 (+11.3MioECU)
Schedule :TheinvestmentwillcommenceinrSecourseof1982
andbecompletedinthesecondhal'Tbt1983.
Market
EnvironmentPotentialcustomersaremanufacturers ofindustrial
gases,breathingapparatus,divingequipment,fire
extinguishers,carbondioxideandreservoirs,
breweries,theaircraftandspaceindustryandthe
motorindustry.Thecompanyestimatesthatapproxi­
mately6.5%ofproductionwillbesoldintheSaar-
land,,38.5%intherestoftheFederalRepublic,25%
inEECcountriesand30%elsewhere.
Environmental protectionmeasuresinaccordance
withcurrentlegislation
Thesectoralandcompetitionaspectsoftheprojecthavebeencloselyexamined;
theydonotmilitateagainstthegrantingoftheloanappliedfor.
Theprojectappearstobeeconomically sound;itwillmakeasignificant
contribution totheredevelopment oftheregionwhichissufferingtheeffects
ofadeclineinECSCindustries .

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ill.THEREGION
ProjectLocation :Homburg,LandkreisNeunkirchen,Saarland
Unemployment rate :IntheNeunkirchen area:10.8%in
March1982
Nationalaidstatusof :Regionaldevelopment area
proiectarea
.TheECSCindustryhasbeenanimportantsourceofemployment tnthearea.
IV.CONFORMITY WITHARTICLE56OFTHEECSCTREATY
ECSCredundancies inprojectarea:Therestructuring programme,whichprovides
forthetechnical andfinancialamalgamation
oftheRochling-Burbach GmbHandNeunkircher Eisenwerk AGsteelworks,the
construction ofanewsteelworksinVolklingen andtheshutdownoftheliquid
phaseatNeunkirchen,involvesabout8.700redundancies between1978and1983.
Jobstobecreatedbytheproj'ect :277permanentjobswillbecreatedasa
resultofthesettingupofthesteel
cylindermanufacturing plantatHomburg.ThejobswillallbeofferedtoECSC
workersmaderedundant byNeunkircher Eisenwerk AG.
Training :Aninternalretraining programme and
selectivejobtrainingofthework-force
inthenewproductrangehavealreadybegun.
TheCommission considersthattheapplication complieswithArticle56(2a)
oftheECSCTreatyandthatthenewjobstobecreatedbytheprojectare
capableofabsorbingredundant ECSCworkersintoproductive employment .

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V.CONVERSION LOAN
Loanappliedfor :DM13.5million
Loantobegranted :TheCommission hasapproved aloanof
DM13.5millionCabout 5.65MioECU>
orequivalent totheabovementioned
companyinaccordance withArticle56
application criteria (OJC82,
29March1979)
Interestrebate 3percentage pointsperyearforfive
yearson5.54MioECU.
Jobbasisofinterestrebate 277jobssuitableforformerECSC
industryworkers,towhomtheywillbe
offeredinpriority.
VI-COUNCILASSENT
TheCommission requeststheCounciltogiveitsassenttotheforegoing
decision-