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COM ( 83) 433 
 
 
 
Vol. 1983/0163 
  
 
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), this 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. 
Februar 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 vom 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 COMMUNITIES
General S ec r e t a riatCOM (83) 433 final 
Brussels, 12 July 1983
FO R OFFICIAL U S E  ONLY
COMMUNICATION FROM THE COMMISSION TO THE COUNCIL
Request for Council assent under Article 54, second paragraph of the 
ECSC Treaty to the financing of the installation of a new axle forge at the 
Les Dunes works (Dunkirk) by the Compagnie Française des Aciers Spéciaux
COM (83) 433 final

Note to the Council
Subject; Request for Council assent under Article 54» second paragraph of
... the ECSC Treaty to the financing of the installation of a new
axle 
forge at the Les Dunes works (Dunkirk) by the Compagnie 
Française des Aciers Spéciaux.
Loan requested;  FF 65 million (approximately 9*55 million ECU)
Borrower; Compagnie Française des Aciers Spéciaux, Paris La Défense (CFAS) 
Project executor;  CFAS
At the end of I 98O Creusot Loire turned its long products sector into a 
separate subsidiary by establishing the Société Creusot Loire Dunes with 
retroactive effect from 1 January 1980.  The new company was given Creusot 
Loire's ‘ Les Dunes, Valenciennes’  and Le Marais works, as well as two-of 
Creusot Loire's industria.1 subsidiaries, Calibracier and the Société 
Industrielle de Bruay.
Control of Société Creusot Loire Dunes, initially wholly owned by Creusot 
Loire, has passed to Usinor, which took a 75% holding in the company when 
the share capital was increased on 3 April I 98I.
At this point, the name of Société Creusot Loire Dunes was changed to 
Compagnie Française des Aciers spéciaux (CFAS).
The provisions of the Protocol of 13 March 1981 laying the foundations of the 
new industrial grouping, to which the Government was a party and' those of the 
agreement between Usinor and Creusot Loire took effect retroactively on 
1 January 1981
In July 1981, ÇFAS acquired from Société Chiers-Chatillon all the shares in 
Société des Aciers Spéciaux de la Chiers, which operated the Vireux-Molhaim and 
Hautes Rivières works in the Ardennes, and the Corbie works in the Somme.

-  2 -
Production range
CPAS produces, processes and marketss ...
- long products in fine carbon steels and alloy structural steels
(I),
- wheels and axle assemblies for rolling stock (ll)s
f
- various structural steel products (ill).
Tonnages (1 000 t) ·.....
1980 1981 ' 1982 estimated
Secotr I 280 282 262
Sectors II and III 254 256 188
' ■  ·  TOTAL 534 538 450
DESCRIPTION OP THE PROJECT
Introduction.
CFAS's rolling stock sector, with an output of 55 000 t and a turnover of 
FF 455 million in 1982, is a profitable one, employing 800 at the Les Dunes 
works and 500 at Valenciennes, nevertheless, the markets a.ppear vulnerable 
and the company's competitiveness inadequate. This is why production facilities 
must be modernized. In the medium term wheel manufacture is to be dealt with 
and in the long term the use of heavy-guage continuous cast products will be .  
introduced. However, in the case of axle production much more rapid measures 
appear possible.
Aims
a) Production techniques
Axles for the domestic market are cut from rolled rounds. Those for 
export are forged by hammering. In both cases, there is too much metal 
Wastage and processing, time is too long.
Doc. l\To 7091/83 E1T

- 3 -
The project for which finance is being requested would allow axles to be 
die-stamped after induction heating.
This process should improve on current production rates and the metallurgical 
qualities obtained. In view of the geometrical characteristics obtained 
by this process, it would be possible to offer axles with forged bodies *
b) Savings f
Production costs should fall .by approximately 10% in the case of European 
axles and 25% in the case of axles of the American type.
It should be noted that the SNCF has approved the process in question.
c) CPAS intends to double production from 50 000 axles/year at present, sold 
mostly with the wheels mounted, to 100 000‘ axles/year,  half of which will be 
for expoft without wheels”  90% of output will be produced on "the nextf machine.
Cost of the investment s  PP 130 million
- -  —  eqsc finance would amount to 50% of the cost of
the investment, i.e. FF 65 million. ; ·
Work schedules 1984 - 1985
Assessment
The railway equipment market has not escaped the effects of a particularly 
depressed economic climate. In order to remain competitive despite a fall in 
orders, CFAS is basing its business strategy on the installation of new axle 
production methods which both improve product quality and raise efficiency. 
This policy is reflected at the Les Dunes works, which produces approximately 
300 000 t of long products, in the installation of a forge which uses a 
hew process. This investment should double sales of axles and raise steel 
consumption by approximately 35 000 t/year.
Doc. Do 7091/83

- 4 -
Conclusion
On the basis of the above considerations, our assessment of the loan applicati 
is a positive one, since the investment programme contributes directly and 
primarily to achieving the objectives outlined in Article 54, second 
paragraph, of the ECSC Treaty. -
The Commission has decided in principle to grant the loan requested. Pursuant 
to Article 54, second paragraph, of the ECSC Treaty, the Commission therefore 
requests the assent of the Council to the granting of a loan of PE 65 million 
(approximately 9»55 million ECU) to the Compagnie Française des Aciers 
Spéciaux, Paris La Défense.
Doc. No 7091/83 EN