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DOCUMENTS "COM"
COM(81)792
Vol.1981/0223

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•COMMISSION
OFTHE
EUROPEAN COMMUNITIES
SecretariatCOM(81)792 final
Brussels,January1982
FOROFFICIAL USEONLY
Communication fromtheCommissiontotheCouncil
Requestforassent,pursuanttoArt.56.2.a)oftheECSCTreatyto
grantingareconversion loantoBelgianMechanicalFabrication (B.M.F.)
S.A.,Belgium
C0M(81)792final

INTERNAL DOCUMENT
Communication tothe Council
Subject :Request forassent ,pursuant toArt.56.2.a)oftheECSC Treaty
togranting areconversion loan toBelgian Mechanical
Fabrication (B.M.F. ),S.A..Belgium .
I.THE COMPANYNo.313
Appli cant Belgian Mechanical Fabrication (B.M.F. )S.A.
Registered Office Brussels
Parent company of
applicantASCO ,S.A. (50% )
Cockerill S.A.
Cie Bruxelles-Lambert S.A.
Beneficiary Belgian Mechanical Fabrication (B.M.F. )S.A.
Field ofactivity of
beneficiaryManufacture ,machining ,conditioning ,repair ,
sale andpurchase offinished orsemi-finished
products ofthemetal fabrication and
engineering industries .
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Telex-■-COMFijRSPiJ ?if,/

-?-
II.THE PROJECT
Project description :Construction andfitting outofafactory
forthefabrication ofheavy-gauge
aluminium plate into bodies forarmoured
vehicles .This technology will then beused
toproduce bridges ,apparatus forwork atLow
temperature ,forpressing ,stamping andmanu­
facture ofaircraft spare parts .
**".1"*cost :Land !Bfrs 180million
:Buildings ) '
:Plant andmachinery Bfrs 274million
:Other (licence and Bfrs 148million
initial formation
expenses ___________________
:Total Bfrs 602million (14.48 MioECUj
Project schedule :August 1980 -commencement ofwork onthefactory ;
July 1981 -production tocommence :
September 1982 -first items ready fordelivery .
Market :TheBelgian State (Ministry ofDefence );ata
later date the world market for other manu­
factures .
Environment :Environment protection measures inaccordance
with régulations inforce
Thesectoral andcompetition aspects oftheproject have been closely examined ;
they donotruncounter togranting therequested loan *
Theproject appears economically sound ;itwillmake averyuseful contribution
totheredevelopment oftheregion concerned which isaffected byadecline in
ECSC industries .

THE REGION
Project locationa)Aubange (Luxembourg province ),Belgium
b)Grâce–Hol1ogne (Liège province )."
Unemployment rate )12.3% attheendofDecember 1980
)19.1$ attheendofDecember 1980
National aid status of
project areaDevelopment areas
TheECSC industry hasbeen animportant source ofemployment
in J"hearea .
CONFORMITY WITH ART .56OFTHE ECSC TREATY
ECSC redundancies rn
project area
Job creation ofproject
Training•Luxembourg province *
2037 (1975-1 979)-steel
Liège province
4610 (1975-1979 )-steel
1718 (1975-1979 )-coal
1220 (Dee.1979-March 1980 )-steel
:170
:BySIPinconjunction with theO.N.E.M.
TheCommission considers that therequest complies with
Art.562a)oftheECSC Treaty andthat thenewjob
opportunities offered bytheproject arecapable of
absorbing redundant ECSC workers into productive employment ,
*Source »Groupement desHauts-Fourneaux etAciéries Belges .

RECONVERSION LOAN
Loan requested :Bfrs 300million (about 7.22 MioECU )
orits eqfuivalent
Loan granted :TheCommission hasapproved aLoan of
Bfrs 300millionCabout 7-22 MioECU )
orequivalent tothe above mentioned
company inaccordance with Art .56
operating policies (O.J. No.C82/8
of29March 1979 ).
Interest rebate :5%points per year for five years on
3.4MioECU
Johbasis ofinterest rebate :170jobs suitable forformer ECSC
workers ,whoaretobegiven priority .
The Commission invites theCouncil togive itsassent tothe
foregoing decision .