ARCHIVES HISTORIQUES 
DE LA COMMISSION 
 
 
 
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DOCUMENTS "COM" 
 
 
 
 
COM (83) 156 
 
 
Vol. 1983/0044 
  
 
Disclaimer  
Conformém ent au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983 
concernant l'ouverture au public des archives historiques de la Communauté économique 
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983, 
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003 
(JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents 
classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit 
règlem ent. 
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983 
concerning the opening to the public of the historical archives of the European Econom ic 
Communit y and the European Atom ic Energy Communit y (OJ L 43, 15.2.1983, p. 1), as 
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243, 
27.9.2003, p. 1), t his file is open to the public. Where necessary, classified documents in this 
file have been declassified in conformity with Article 5 of the aforementioned regulation.  
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom  1. 
Februa r 1983 über die Freigabe der historischen Archive der Europäischen  
Wirtschaftsgemeinschaft und der Europäischen Atomgem einschaft (ABI. L 43 vom  15.2.1983,  
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. Septem ber 2003  
(ABI. L 243 v om 27.9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit  
erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5  
der genannten Verordnung freigegeben.  
COMMISSION  
OF THE
EUROPEAN COMMUNITIESCOM(83) 156 final
Brussels, 28 March 1983 
FOR OFFICIAL USE ONLY
General Secretariat
COMMUNICATION FROM THE COMMISSION TO THE COUNCIL
Request for assent, pursuant to Article 56 (2a) of the ECSC Treaty  
to the granting of a conversion loan to the Société de Fonderie et  
de Mécanique de l'Est (SFME) - France.
COM( 83) 156 final

COMMUNICATION FROM THE COMMISSION TO THE COUNCIL
S u b je ct : Request fo r  a sse n t, pursuant to  A r t ic le  56 (2a) of the ECSC T re a ty 
~ to  the g ra n tin g  of a conversion loan to  the S ociété de Fonderie et
de Mécanique de l'E s t  (SFME) -  F rance.
THE COMPANY No. 376
A p p li cant S o cié té  de Fonderie et de Mécanique de l'E s t  
(SFME) France
R e g is te re d  O ffic e P a ris
P arent company o f 
app1i cantP a rtn e rs h ip  Company ^ A u to m o b ile  Peugeot and" 
Régie N a tio n a le  des Usines Renault e t Compagnie
R e c ip ie n t : S o c ié té  de Fonderie et de Mécanique de l'E s t
(SFME)
F ie ld  o f a c t i v i t y  o f : A lum inium  fo u n d ry p re s s u riz e d  in te n d e d  a f te r
r e c ip ie n t c a s tin g  f o r  :
-  engine casing
-  gear box casing
-  c lu tc h  casing
-  v a rio u s  pieces fo r  th in  co a tin g

-  2 -
II. THE PROJECT
D e s c rip tio n  : The pro d u cts o f the new alum inium  fo u n d ry p re s s u riz e d
and lo ca te d  in  L o rra in e , on the Vi l le rs -la -M o n ta g n e  s ite  
are in ten ded fo r  the e x c lu s iv e  use o f m otor v e h ic le  
companies c o o p e ra tiv e  p ro d u c tio n  groups o f the Groupe 
Peugeot S A  and the Régie N a tio n a le  des Usines Renault and 
i t s  dependent companies. The new in v e s tm e n ts , as and 
when re a lis e d  and in  some cases, s u b je c t to  v o c a tio n a l 
t r a in in g ,  w i l l  absorb p a rt o f redundant labour in 
L o rra in e .
FF m illio n
Cost : Land Ì
: B u ild in g s  J397
P la n t and m achinery 33
O ther 16
T o ta l 446 (±  67.061 MloECU)
Schedule : The investm ents w i l l  be c a rrie d  out between
1983 -  1987
M arket :The SFME custom ers w i l l  be e x c lu s iv e ly  th e  motor v e h ic le
companies and c o o p e ra tiv e  p ro d u c tio n  groups o f the Groupe 
Peugeot SA (A utom obil e s Peugeot, A u to m o b ile s  C itro e n , 
S o cié té  Mécanique A utom obile de l'E s t ,  S o cié té  Mécanique 
A utom obile du Nord) and the Régie N a tio n a le  des Usines 
R enault and i t s  dependent companies (b ra n c h e s ). * "
E nvironm ent ·  : E n vironm ental p r o te c tio n  measures in  accordance
w ith  c u rre n t le g is la t io n
The s e c to r a l and c o m p e titio n  aspects o f the p ro je c t have been c lo s e ly  examined ; 
they do not m ili t a t e  a g a in s t the g ra n tin g  of th e  loan a p p lie d  f o r .
The p r o je c t appears to  be e c o n o m ic a lly  sound ; i t  w i l l  make a s ig n if ic a n t  
c o n tr ib u tio n  to  the redevelopm ent o f the re g io n  which is  s u ffe r in g  th e  e ffe c ts  
of a d e c lin e  in  ECSC in d u s tr ie s .

UI. THE REGION-  3 -
P ro je c t L o c a tio n Vi I le rs -la -M o n ta g n e , M e u rth e -e t-M o s e lle , 
L o rra in e  ( in d u s t r ia l area to  th e  east of 
N a tio n a l Road 52 L in kin g  Longwy and T h io n v ille )
Unemployment ra te : 9.5 %  f o r  L o rra in e  -  September 1982
N a tio n a l a id  s ta tu s  of 
p r o je c t areaR egional development a id  ( c la s s if ie d  area)
The ECSC in d u s try  has been an im p o rta n t source o f employment in  th e  area.
IV. CONFORMITY WITH ARTICLE 56 O F THE ECSC TREATY
E C S C  redun dancies in 
p r o je c t area1975-1982 (end June) a) Mines :  571
b) S te e l : 7,570
T o ta l 8,141
Jobs to  be c re a te d  by the p r o je c t 424 jo bs s o f, which 376 are reserved in 
p r i o r i t y  'fo r redundant ECSC w orkers
T ra in in g p ro vid e d  by the re c ip ie n t
The C om m ission■ c o n s id e rs  th a t the a p p lic a tio n  com plies w ith  A r t ic le  56 (2a) 
of th e  ECSC T re a ty  and th a t the new jo b s to  be c re a te d  by the p r o je c t are 
capable o f a b so rb in g  redundant ECSC w orkers in to  p ro d u c tiv e  em ployment.

-  4 -
V, CONVERSION LOAN
Loan a p p lie d  f o r FF 50 m ilL i on
Loan to  be g ra n te d The Commission has approved a Loan o f 
FF 50 m iLLion (about 7.52 MioECU)
or equivaLent to  the above m entioned 
company in  accordance w ith  A rtic L e  56 
a p p L ic a tio n  c r it e r i a  (OJ C  82,
29 March 1979) *  ,
I n te r e s t  re b a te 3 percentage p o in ts  per year fo r  fiv e  
years on 7.52 MioECU,
Job basis o f in te r e s t rebate 376 jo b s s u ita b le  fo r form er ECSC 
in d u s try  w o rke rs, to  whom th e y w i l l  be 
o ffe re d  in  p r i o r i t y .
V I, COUNCIL ASSENT
The Commission reque sts the C ouncil to  g iv e  i~ts assent to  the fo re g o in g  
ç ie c is io n .