ARCHIVESHISTORIQUES
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DOCUMENTS "COM"
COM(81)562
Vol.1981/0172

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COMMISSION
OFTHE
EUROPEAN COMMUNITIES
GenerolSecretariatCOM(81)562final
Brussels,^October1981
FOROFFICIALUSEONLY
COMMUNICATION FROMTHECOMMISSION TOTHECOUNCIL
Requestforassent,pursuanttoArticle56(2)(a)ofthe
ECSCTreaty,togranting areconversion loanto
KruppStahlA.G.,FederalRepublicofGermany
C0MC81)562final

INTERNAL DOCUMENT
Communication totheCouncil
Subject:Requestforassent,pursuanttoArt.56.2.a)oftheECSCTreaty
tograntingareconversion loantoKruppStahlA.G.,Federal
RepublicofGermany.
I.THECOMPANYNo.320
Applicant KruppStahlAktiengesellschaft (formerly
Friedr.KruppHüttenwerkeAktiengesellschaft )
RegisteredOffice Bochum
Parentcompanyof
applicantFriedr.KruppGmbH,Essen-704
NationalIranianSteelCompany,Isfahan-254
Outsideshareholders -5%
Beneficiary Seeapplicant
Fieldofactivityof
beneficiaryProduction,processingandsaleofiron,steel­
edothermaterialsandtradeinvarious
industrialproducts.
delaLoi200,B-1010Brtisels-Tcicpt ■350040-35«040-Tclegraphircd'l'C,--f.'OMK-H-
Telex ■COMF'.iP!3RiJ ?iL,.'

II.THEPROJECT
Projectdescription :Cessationofcrudesteelproduction (according
totheopen-hearth process)andshutdownoftheingot/semi-product millat
theNfederschel'den works.Provisionofbrightsteelproductionfacilities
attheseworksbytransferring availableplantandmachineryfromtheGeisweid
works,some10km.fromNiederschelden ,andbythepurchaseofnewsteel-
workingmachines.Productioncapacityforbrightsteelinitiallytobe
increasedto7,000tonnespermonth(in1985).In1980,thecapacityof
theGeisweidworkswas4,050tonnespermonth.
Projectcost(inMioDM):Land )
:Buildings )
:Plantandmachinery
:Other
:Total15
4.6
25.6(10.093MioECU)
Projectschedule Thecapitalprojectwillbecompleted
thesecondhalfof1981.in
Market Mainlythemotorvehicleandmechanical
engineeringindustries,ball-bearing
manufacturers andcoldextrusionplants.
Approximately 80%ofsalesaretodomestic
buyers,13%toEECbuyersandtherestto
thirdcountries.
Environment Environment protection measuresinaccordance
withregulations inforce
Theprojectappearseconomically sound;itwillmakeaveryusefulcontribution
totheredevelopment oftheregionconcernedwhichisaffectedbyadeclinein
ECSCindustries.

-3-
III.THEREGION
Projectlocation :Niederschelderhütte ,KreisAltenkirchen,
, Rheinland-Pfalz .
Unemploymentrate zInJanuary1981,-theunemploymentrate
intheAltenkirchen/Oberwesterwald
labourmarketarearangedbetween
5.9%and7.2%.
Nationalaidstatusof
projectarea :Aregionaldevelopmentarea.
TheECSCindustryhasbeenanimportantsourceofemployment
inthearea.
IV.CONFORMITY WITHART.56OFTHEECSCTREATY
ECSCredundancies ir.
projectareaAsaresultofthecessationofcrude
steelproduction,some600jobswill
belostattheNiederschelden works.
Jobcreationofproject
TraimngThecreationofbrightsteelproduction
facilitieswillenable230workersto
bere-employed . ■
Trainingandretrainingmeasuresforthe
redeployment oflabourwillbetakenby
thecompany.
TheCommissionconsidersthattherequestcomplieswith
Art.562a)oftheECSC'Treaty andthatthenewjob
opportunities offeredbytheprojectarecapableof
absorbingredundant ECSCworkersintoproductiveemployment.

RECONVERSION LOAN
Loanrequested :DM12million
Loangranted :TheCommission hasapproved aloanof
DM12million (about4.731 MioECU)
orequivalent totheabovementioned
companyinaccordance withArt.56
operatingpolicies CO.J.No.C82/8
of29March1979).
Interestrebate ':5%pointsperyearforfiveyearson
4,600,000 ECU.
Jobbasisofinterestrebate:230jobssuitableforredundantsteel
workers,whoaretobegivenpriority.
COUNÇILASSENT
TheCommissioninvitestheCounciltogiveitsassenttothe
foregoingdecision.