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DOCUMENTS "COM"
COM(82)761
Vol.1982/0230

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COMMISSION
OFTHE
EUROPEAN COMMUNITIES
GeneralSecretariatCOM(82)761 final
Brussels,22November1982
FOROFFICIALUSEONLY
Communication fromtheCommission totheCouncil
Requestforassent,pursuanttoArticle56(2a)oftheECSCTreatyto
thegrantingofaconversion loantoA.A.BrothersLtd.,
UnitedKingdom
C0MC82)761final

Communication totheCouncil
Subject:Requestforassent,pursuanttoArticle56(2a)oftheECSCTreaty
tothegrantingofaconversionloantoA,A.BrothersLtd.,.
UnitedKingdom.
I.THECOMPANY No.372
AppliGant A,A.BrothersLtd.
RegisteredOffice Hamilton,Scotland
Parentcompanyof
applicantNoparentcompany.Theauthorisedsharecapitalof
thecompanyist5m.;theissuedsharecapitalis
fc2m.withallofthesharesbeneficially ownedby
Mr.YaqubAliandMr.TajAliandtheirchildren.
RecipientA.A.BrothersLtd.
Fieldofactivityof
recipientWholesaleDistribution andWarehousing .
25:.de:oLci200,B-iOtOBru^sels-Téléphoné350040-358040.-TelegrapHîccdd'css;COMfcîJRftr
Te!e*«COMFURB<<U 218/7

-2-
II.THEPROJECT
DescriptionTheprojectinvolvestheestablishment ofanewnational
andinternational distribution centreinGlasgow.In
February1982thecompanyboughtasitewhichwaspre­
viouslyoccupiedbyacarpetmanufacturer .Thisbusiness
hasnowceasedwithalossofsome1000jobsovertheyears.
Thesitecovers19acresandincludesasinglestorey
buildingofsome400,000sqftwithaseparateoffice
blockofsome40,000sq.ft.Theexistingstructureofthe
premisesisbeingretainedbuttheyrequiretobeadapted
fortheprojectproposed.
t000
Cost Land )
Buildings ;
Plantandmachinery
Other
Total5,941
658
180
6,779 (_+12,24MioECU)
Schedule 1982-1985
TheDirectorsbelievethatthegreatestscopeforfuture
Market •9rowtht'iecompanyisinthenationalandinternational
"distribution service,forwhichtheexistingHamilton
siteiswhollyunsuited.ThenewGlasgowoperationis
designedtoholdatGlasgowtheverysubstantial stocks
presentlyheldatavarietyofwarehouses andbonded
storesthroughoutcentralScotland.Inpastyears,the
useofthenumerousoutsidestoreshasadverselyaffected
theaBilityofthecompanytomovestocksquicklyand
hasputadamperbothfinancialandphysicalonthegrowth
ofttr*company.
Environment :Environmental measuresinaccordance withcurrent
legislation .
Thesectoralandcompetitionaspectsoftheprojecthavebeencloselyexamined;
theydonotmilitateagainstthegrantingoftheloanappliedfor.
Theprojectappearstobeeconomically sound;itwillmakeasignificant
contribution totheredevelopment oftheregionwhichissufferingtheeffects
ofadeclineinECSCindustries .

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III.THEREGION
ProjectLocation :Glasgow,Scotland
Unemployment rate :InMay1982therewere94.220peopleregistered
asunemployedresultinginanunemployment rate
of15.9%.Thepositionisparticularly severeformenwithmaleunemployment nowat
20.0%(17.1%inScotland).
Nationalaidstatusof ^.
ProjectareaSpecialDevelopment Area
TheECSCindustryhasbeenanimportantsourceofemployment inthearea.
IV.CONFORMITY WITHARTICLE56OFTHEECSCTREATY
.Between1970and1980employment in'coal-mining
.. inScotlandfellbyabout9,000(31%)andin
reunanciesin :metalmanufacture (ofwhichironandsteel
P1"0'1ec–area ' makingisthemajorcomponent)by.about15,000
(32%).Thedeclineinironandsteelemployment hasbeenparticularly rapidin
Strathclyde inthemorerecentperiod,anditisestimatedthatafallover12,000
jobshasoccyredintheregionsince1976.
Jobstobecreatedbytheproject :276
Training :Besidesasmallnucleousofhighlytrained
salesandaccountingstaff,thenewjobswill
includeasubstantial numberofdriversand
packersforwhichnospecialtrainingwillbe
required.
TheCommission considersthattheapplication complieswithArticle56(2a)
oftheECSCTreatyandthatthenewjobstobecreatedbytheprojectare
capableofabsorbingredundant ECSCworkersintoproductive employment .-

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V.CONVERSION LOAN
LoanappliedfoT• :fc2.4m
Loantobegranted :TheCommission hasapproved aloanof
b2,4m(about 4.33 MioECU)
orequivalent totheabovementioned
companyinaccordance withArticle56
applicationcriteria(OJC82,
29March1979)
Interestrebate
Jobbasisofinterestrebate
VI,COUNCILASSENT:3percentage pointsperyearforfive
yearson4MioECU.
:200jobssuitableforformerECSC
industryworkers,towhomtheywillbe
offeredinpriority.
TheCommission requeststheCounciltogiveitsassenttotheforegoing
decision«