ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(82)151
Vol.1982/0047

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COMMISSION
OFTHE
EUROPEAN COMMUNITIES
GeneralSecretariatCOM(82)151 final
Brussels,29March1982
FOROFFICIAL USEONLY
COMMUNICATION FROMTHECOMMISSION TOTHECOUNCIL
Requestforassent,pursuanttoArt.56.2.a)oftheECSCTreatyto
granting a.reconversion LoantoClevelandOffshoreLimited,
UnitedKingdom
C0MC82)151final

INTERNAL DOCUMENT
Communication totheCouncil
Subject:Requestforassent,pursuanttoArt.56.2.a)oftheECSCTreaty
tograntingareconversion LoantoCle\/elandOffshoreLimited,
UnitedKingdom.
I-THECOMPANY No.338
Applicant ClevelandOffshoreLimited
RegisteredOffice :Darlington,Co.Durham
Parentcompanyof
applicant:ClevelandOffshoreLimitedisawhollyowned
subsidiaryofClevelandEngineering Holdings
whichinturnisownedbyTrafalgarHouseLimited,
London.
Beneficiary :ClevelandOffshoreLimited
Fieldofactivityof:Mainlyfabrication andassemblyoflarge
beneficiary structuralsteelitemsnormallyrequiring
movementbywater,principally concerned
withtheproductionofmodularised assemblies
forthedevelopment ofNorthSeaoil
exploration .
r.1RuedeloLoi200,B–1010B>ujseli-Téléphone350040-358040-Tclegrophicodd'css:«COMEURBri;',srls-
Tele*:«COMEURÛRIJ 218/7.

-2-
ZI.THEPROJECT
Projectdescription :Theprojectmainlyinvolvestheconstruction
ofasecondtwo-baymoduleassemblyshopona26acresiteatPortClarence,
whichwillhavetheproductioncapacityoftwo2,000tonneNorthSeastructures
peryear.Furtherdevelopments plannedare:thebuildingofatwostorey
amenityblock,construction ofanextensiontothemainfabrication shops,
installation ofa"Goliathcrane"andrelocationofthesteelstockyard,
construction ofadrainagesystemandupratingoftheheavyloadoutquay
toastandardmorecompatiblewithloadoutofmodulesinexcessof2,000tonnes.
Projectcost :Land }.... 5'3,239
(infcOOO'):Buildings ;
:Plantandmachinery 450
:Other –
:Total 3,689(6.23MioECU)
Projectschedule :Theinvestmentprojectwillbeimplemented
in1982and1983.
Market :ClevelandOffshore'saimsarecurrentlyand
primarilybeingdirectedatthefabrication ofmodulesfortheoffshore
industrywithinUnitedKingdomwaters,butthecompanycouldtender
foranyheavystructuralfabrication whichhastobeassembled,priorto
deliveryandwhichnecessitates deliverybymarinetransport.
Environment :Environment protection measuresinaccordance
withrégulations inforce
Thesectoralandcompetitionaspectsoftheprojecthavebeenclosely
examined;theydonotruncountertograntingtherequestedloan.
Theprojectappearseconomically sound;itwillmakeaveryusefulcontribution
totheredevelopment oftheregionconcernedwhichisaffectedbyadeclinein
ECSCindustries.

-3-
III.THEREGION
Projectlocation
Unemployment rate
Nationalaidstatusof
projectareaPortClarence,Middlesbrough ,
Teesside,North-East regionof
theUnitedKingdom.
Teessidetravel-to-workarea
asat1July,>1981:male20.8%,
female13.7%,total18.3%.
Assistedareaasdefinedby
theDepartment ofIndustry.
The,-CSCindustryhasbeenanimportantsourceofemployment
inthearea.
IV.CONFORMITY WITHART.56OFTHEECSCTREATY
ECSCredundancies' in
projectarea
Jobcreationofproject
TrainingAbout3,000redundancies at
B.S.C.Teessideandsome2,000at
B.S.C.Hartlepool overthepast
fouryears.
Thenumberofjobstobecreated
in1982and1983willbe280.Itis
estimatedthatthesub-contractors'
labourforceemployedonsitewillalsc
increaseby200upto1985.
Trainingforallindirectlabourwill
beavailable onthejob.Direct
labourandstaff,ifnotqualified,
willrequireoffthejobtraining
beforeemployment canbeoffered.
TheCommission considersthattherequestcomplieswith
Art.562a)oftheECSCTreatyandthatthenewjob
opportunities offeredbytheprojectarecapableof
absorbingredundant ECSCworkersintoproductive employment .

RECONVERSION LOAN
Loanrequested
Loangrantedfc1.8M
TheCommission hasapproved aloanof
fc1.8M (about3.038MioECU)
orequivalent totheabovementioned
companyinaccordance withArt.56
operatingpolicies(O.J.No.C82/8
of29March1979).
Interestrebate 3%pointsperyearforfiveyearson
3.020 MioECU.
Jobbasisofinterestrebate151jobssuitableforandtobeoffered
inprioritytoex-ECSCworkers.
COUNCIL..ASSENT .
TheCommissioninvitestheCounciltogiveitsassenttothe
foregoingdecision.