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DOCUMENTS "COM"
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Vol.1981/0072

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COMMISSION
OFTHE
EUROPEAN COMMUNITIES
GeneralSecretariatCOM(81)161 final
Brussels,13h„.-g.
FOROFFICIAL USEONLY
REQUESTFORASSENT,PURSUANT TOART.56.2.a)OFTHEECSCTREATY
TOGRANTING ARECONVERSION LOANTOMcCAINFOODS(G.B.)LIMITED,
UNITEDKINGDOM
(Communication fromtheCommission totheCouncil)
C0M(81)161final

COMMISSION
OFTHE
EUROPEAN COMMUNITIES
INTERNAL DOCUMENT
Communication totheCouncil
Subject;Requestforassent,pursuanttoArt.56.2.a)oftheECSCTreaty
tograntingareconversion LoantoMcCainFoods(G.B.)Limited,
UnitedKingdom..
I.THECOMPANY No.317
Applicant :McCainFoods(G.B.)Limited
RegisteredOffice :Scarborough,NorthYorkshire
Parentcompanyof
applicantTheimmediateparentcompanyisMcCainHoldings
B.V.ofLewedorp,Hollandwhichinturhisa
whollyownedsubsidiary companyofMcCainFoods
LimitedofFlorencevi Ile,NewBrunswick,Canada.
BeneficiaryMcCainFoods(G.B.)Limited
Fieldofactivityof:Thecompanycurrentlyoperatestwofactoriesin
beneficiary NorthYorkshireandCambridgeshire atwhichfrozen
Frenchfriedpotatoesareproducedandpackedfor
saletothefoodserviceandretailmarkets.This
isthemainactivitybutinadditionthecompany
alsoproducesfrozenpizzasandbuysandsellsa
rangeoffrozenvegetables,fruitandcakes.
IKcdelaLoi200,B–1040B'tiscls-Tcicpf3500^0-i3';040-Telcgraphir COMh;i-fv
Tele*•COMP.iRï'JPiJ ?!h!

2
II.THEPROJECT
Projectdescription :T"enew"facilitycomprisesasingleprocessing
lineforfrozenFrenchfriedpotatoesandac°t-dstore.Potatoesarereceived
inbulkfromgrowers,theyarewashed,peeled,chipped,blanched,fried,
frozenandpackedbeforebeingstoredinthecompany'scoldstorefor
subsequentdistribution tocustomers.
Projectcost :Land 593
:Buildings 6,916t,00°
:Plantandmachinery''uu*
:Other
:Total 14,513
Projectschedule :Theinvestmentprojectislikelytobe
implemented bymid1983.>Aftercompletion
capacityoftheplantwillbeincreasedby
expandingtheshiftsworkedfromoneshift
allyearin1983/84tothreeshiftsallyear
in1987/88.
Market :GreatBritain.Itisanticipatedthatthe
newfactorywouldsupplycustomersinWales,
SouthWestEngland,theWestMidlandsand
Lancashire .
Environment :Environmentprotectionmeasuresinaccordance
withrégulations inforce
Theprojectappearseconomically sound;itwillmakeaveryusefulcontribution
totheredevelopment oftheregionconcernedwhichisaffectedbyadeclinein
ECSCindustries.

-3-
III.THEREGION
ProjectLocationSandycroft,Clwyd,NorthEastWales
Unemployment rate Shottjontravel-to-workarea16.1a
Wrexhamtravel-to-workarea14.7%
Nationalaidstatusof
projectareaDevelopment andSpecialDevelopment
Areasrespectively .
TheECSCindustryhasbeenanimportantsourceofemployment
inthearea.
IV.CONFORMITY WITHART.56OFTHEECSCTREATY
ECSCredundancies in
projectarea
JobcreationofprojectMostofthe6,000steelredundancies
earlierannouncedforShottonhavenow
takenplace.AtWrexhamover7,000jobs
werelostincoal-miningbetween1962
and1976.
389
TrainingWillbeprovidedbythecompany ,
TheCommissionconsidersthattherequestcomplieswith
Art.562a)oftheECSCTreatyandthatthenewjob
opportunities offeredbytheprojectarecapableof
absorbingredundantECSCworkersintoproductiveemployment.

_L-
V. RECONVERSION LOAN
Loan requested :
Loan granted :
Interest rebate :
Job basis ofinterest rebate :
t
VI. COUNCIL ASSENTt7M
TheCommission hasapproved aloan
oft7M (about 12.83 MioECU )
orequivalent tothe above mentioned
company inaccordance with Art .56
operating policies (O.J. No.C82/8
of29March 1979 ).
i%points per year forfive years on
5,^60,000 ECU
273jobs suitable forandtobeoffered
inpriority toex-ECSC workers
TheCommission invites theCouncil togive itsassent tothe
foregoing decision .