ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(81)751
Vol.1981/0213

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COMMISSION
OFTHE
EUROPEAN COMMUNITIES
GeneralSecretariatCOM(81)751 final
Brussels,8December1981
FOROFFICIAL USEONLY
Communication fromtheCommission totheCouncil
Requestforassent,'pursuanttoArt.56.2.a)oftheECSCTreatyto
granting areconversion loantoHalbergerhütte GmbH,F.R.ofGermany
C0MC81)751final

INTERNAL DOCUMENT
Communication totheCouncil
Subject:Requestforassent,pursuanttoArt.56.2.a)oftheECSCTreaty
tograntingareconversion loantoHalbergerhutte GmbH,F.R.ofGermany ,
I.THECOMPANY . No340
Applicant :Halbergerhutte GmbH
RegisteredOffice :Saarbrucken-Brebach
ParentCompanyof :Pont-a-MoussonS.A.,Nancy
applicant
Beneficiary :Halbergerhutte GmbH
Fieldofactivityof:
beneficiary
A)PipingDivision.Manufacture andsaleofcentrifugally castpressuretubes
anddischargepipesmadefromductilecast,pressureanddischargefittings,
sewercastings,pigironandplasmaarcweldedflangedpipesmadefrom
nodularcastiron.
B)MachineCastingDivision.Manufacture andsaleofcomplexcastingsfor
motorandothervehicles,safetycomponents,cylinderlinersandpattern
andjobcastingsmadefromgreycastironandnodularcastiron.
Qddrass:RuedeloLoi200,8-1040Brune!»-Téléphoné350040-358040-Télégraphieodd'on:«-COMEURBru*scis
T.lex:•COMEURBRU 218/7*

-2-
II.THEPROJECT
Projectdescription^
Theproposedinvestmentisintendedtoimproveexistingproductionmethods
andproductsfromthetechnicalpointofviewandtoexpandtheproductrange
toincludehigh-gradeproductssoastostrengthenthecompetitiveness ofthe
company.
Inthepipingfield,emphasisisplacedonplasmaarcweldedflangedpipes
developedbythecompanyandoncoatingmethodssoastowidentherangeof
application oftheproducts.
Inthemachinecastingfield,themanufacture ofcrankshafts andsafety
componentsistobesteppedupinordertooffsetafallinthesaleof
cylinderblocks,gearboxhousingsandbrakedrumsanddiscs.Withthese
productsthecompanycanuseitsknow-howincastingtechnology andmetallurgy
toreplaceforgedpartswithcastpartsmadefromnodularcastiron,thereby
respondingtothewishesofthemotorindustry.
ProjectCost
(inmiliionsofDM)
Projectschedule
Market :A)PipingDivision.Alldomestlcsalesareto
thepublicwaterandsewageauthorities .90%areusedfordrinkingwater
suppliesandtheremaining 10%forsewage,gasandotherpipes.Themajority
ofexportsgotoAfricaandtheMiddleEast.
B)MachineCastingDivision.60%oftheproductionofcarandvehicle
castingsissoldtothecommercialvehicleindustry(lorries,tractors,
construction machinery)and40%tothemotorindustry.Between50and55%
ofsuppliesgotoGermancustomersandmostoftheremaindertotheEECand
theU.S.A.
Environment :Environmentalprotectionmeasuresinaccordance
withrégulations inforce.
Thesectoralandcompetitionaspectsoftheprojecthavebeenclosely
examined;theydonotruncountertograntingtherequestedloan.'\8-2Buildings ;
Plantandmachinery 56.5
Other 5.3
Total 70.0(27.76MioECU)
Theinvestment programmeistobecarriedout
between1979and1982inclusive,mostofthe
capitalexpenditure beingincurredin1981and
1982.
ft
:A)PipingDivision.Alidomesticsalesareto
Theprojectappearseconomically sound;itwillmakeaveryusefulcontribution
totheredevelopment oftheregionconcernedwhichisaffectedbyadeclinein
ECSCindustries.

-3-
IÏÏ.IHE_REGION
ProjectLocation
.•*.
Unemployment rate
Nationalaidstatusof
projectarea
TheECSCindustryhasbeenan
inthearea.:Brebach-Saar
:8.8%intheSaarbrucken labour
exchangearea(May1981).
:Regionaldevelopment area.
importantsourceofemployment
IV.CONFORMITY WITHART.56OFTHEECSCTREATY
ECSCredundancies in
projectarea
Jobcreationofproject
TrainingAsaresultoftheprogrammefor
restructuring theSaarlandsteel
industry,whichhasbeenamendedin
themeantime,furtherredundancies of
ECSCworkers(about2000)aretobe
expectedoverthenextfewyears.
250,tobeoccupiedbeforetheend
of1982.
Thecompany'strainingprogrammeis
aimedatretraining formercoaland
steelworkersforemployment inthe
factory.
TheCommission considersthattherequestcomplieswith
Art.562a)oftheECSCTreatyandthatthenewjob
opportunities offeredbytheprojectarecapableof
absorbingredundant ECSCworkersintoproductive employment .

-Α­
ν.RECONVERSION LOAN
Loanrequested
LoangrantedDM25million
TheCommission hasapproved aloanof
DM23.5million(about 9.32 MioECU)
orequivalent totheabovementioned
companyinaccordance withArt.56
operatingpolicies (O.J.No.C82/8
of29March1979).
Interestrebate 3/.pointsperyearforfiveyearson
5 MioECU.
Jobbasisofinterestrebate250jobssuitableforandtobeoffered
inprioritytoex-ECSCworkers.
V!.COUNCIL_ASSENT
TheCommissioninvitestheCounciltogiveitsassenttothe
foregoingdecision.