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DOCUMENTS "COM"
COM(79)408
Vol.1979/0147

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COMMISSION
OFTHE
EUROPEAN COMMUNITIES
GeneralSecretariatCOM(79)408final
Brussels,18thJuly1979
FOROFFICIAL USEONLY
REQUESTFORASSENTPURSUANT TOARTICLE56,2a),
OFTHEECSCTREATY,TOGRANTINGARECONVERSION
LOANTO"GAROLOR"(FRANCE)
(Communication fromtheCommission totheCouncil)
COM(79)408final
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INTERNAL DOCUMENT
COMMUNICATION TOTHECOUNCIL
Subject:RequestforassentpursuanttoArticle56,2a),oftheECSC
Treaty,togranting»reconversion loantoGAROLOR (France),
I.ESSENTIAL INFORMATION
Applicant
Finalbeneficiary
Project
Location
Totalinvestment
Loanrequested
Interestrebate
JobscreatedGAR0L0R
GAR0L0R
Creationofa.serviceundertaking
(warehousing-storage )
Ennery(Moselle)-Lorraine
FF29.01million(+5.05MEUA)
FF8,600,000 (+1,497,000 EUA)
44,910EUAperyearforthefirstfive
years
230jobsminimumareintendedbywayof
priorityforformerECSCworkersin
LcJrraine.
II.CONFORMITY WITHARTICLE56OFTHEECSCTREATY
Lorrainetodayisfacingasituationofincreasing concernwithregardto
employment;thisisduetothecrisisinthesteelindustry.
Thisindustrialregion(2.3millionpopulationin1975)produced,lessthan
10yearsago,2/3ofFrenchsteel.In1973itsshareofthenationalproduct
insteelwas54%;thisfellto43.4Xin1977.Thesameyearthisregionmined
35.2milliontonnesofironorecomparedwith52millionin1973.
Parallelthereto,apolicytoimproveproductivity,modernisation andcompany
restructuring hasbeencarriedoutoverfifteenyearsandthishasledtoa
substantial declineintheworkforce.FromApril1977totheSpringof1979,
thefollowingredundancies werecarriedout:
mmm/•••
Provisionaladdress:RuedelaLoi200,B-1040Brussels-Téléphoné350040-358040*Télégraphieaddress:«COMEUfijBrussels •-
• Telex:«COMEURBRU 21877.

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SACILOR-SOLLAC 8,700jobs
USINOR+SaubresandUckange2,619-
COCKERILL 300-
CHIERS+NEUVESMAISONS 1,222-
POMPEY 500-
thatistosaysome13,000jobstowhichmustbeaddedfurtherredundancies
recentlyannouncedfortheperiodtorunfromApril1979toend-1980:
SACIL0R-S0LLAC 8,500
USIN0R-CHIERS-NEUVES-MAIS0NS5,750
TheeconomicrecessionhasaffectedtheLorrainepopulation (declineby
68,730duringtheintercensus years1968-1975)andthisphenomenon could
continueincomingyears.
Lorrainehasbeenclassified bytheFrenchGovernment asapriorityregionfor-
aidandthisintentionofthepublicauthorities hasalreadybeenreflectedin
substantial jobcreations.Inthisconnection,referenceismadesimplytothe
maindecisionstakeninrecentmonths:theSaviemsettlementatBatilly,
thatofPeugeot-Citroen atEnneryandofRenaultnearThionville.
Howevertheunprecedented economicrecessionaffectingLorraineatpresent
makesitnecessarythatallmeasuresbetakenforthisregionandespecially
theLorrainesteelproducingareatoregaintheoutputcapacityand
industrialdrive,whichmadeitsreputation,andtoallowitspopulationto
contributeeffectively ,tothedevelopment ofthenationaleconomy.j
Theintroduction atEnneryofamotorwaycomplex,bothcreatingjobsandservice
activities,shouldformthediversifying factorneededbyLorraineforjobs
andactivitycreation.
TheworkofGarolorS.T.involvedherecreatesnewjobsandisahimportant
assetforbroadening andredeploying theLorraineeconomy.
III.THECONCERN
Description :GarolorS.A.
Légalstatus :Limitedcompany(sociétéanonyme)
Established :1978
«
Administrative placeofbusiness :Metz
Registeredcapital :FF38,458,000
•••/••■
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TheregisteredcapitalofGarolorS.A.isderivedfromshareholdings by
Savilor-Sollac,otherlargeconcerns,businessesinLorraineandbanks.
TheCompanywasestablishedaftermarketresearch,whichshowedtheneedfor
thisservicebusiness.
IV.THEPROJECT
GAROLORsettlementfallswithincomprehensive townplanning;thesiteofthe
businessislaiddownintheOutlineGuideplanforRegionalandTownPlanning
(SDAUSchemaDirecteurd'Am^nagement etd'Urbanisme ).Thepresentplanf~r
groundallocationincludestheproject.
Warehousing-Offices
GarolorS.A.'sownpremisesprovidefortheoperationofastorageand
distribution centre.
Thebasic*taskofGarolorS.A.istoprovidethenumerousconcernsinvolved
(nationalandinternational transporters,transitoperators,customs
commissioners andofficers...)withsuitablepremisesforhire.
Thepremi9esare:
atransitplatform,roadtoroador-railtoroad.
Buildingsofsma;llcapacitybutwithfrequentloading/unloading
points.
Premisesfortransporters .
Storagewarehouses *forindustrialists oftransporters storinggoodsfor
accountoftheircustomers.
Buildingsconstructedindepthwitheachindividualcompartmentof1,000
squaremetresonaverage.
.Averagesizewarehousesforsmallindustrialists orhandicraftbusiness,
eachstoreof600squaremetresmaximum.
Specialisedbuildingsbuiltaccordingtothespecification oftheir
futureoccupants,builtingeneral*tohousebusinessofsophisticated
distribution .
■Officesattachedtostoragewarehousestoensureonthespotmanagement.
Independentofficesforservicetechnicians andmanagement.
Plentifulparkingspacetoavoidcrowdingofvehiclesintoneighbouring
towns.
.Fromthecommercialdevelopmentaspect,coldstoragewarehousesarenot
excluded.
%
* ■••/•••
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V.THEMARKET
TheGeneralCounciloftheChamberofTradeandIndustryoftheMoselle
departmenthaveentrustedresearchofficeswiththetaskofconsideringthe
feasibility ofaCentreofthiskindonindustrialsitesofthecombined
industrialandserviceactivityestateofNordMetropoleLorraine.
Researchhasreachedfavourableconclusions .
TheindustrialsiteislocatedontherightbankoftheMoselle,15kmfrom
thecentreofthetownofMetz.Motorways A4andA31arelessthan3kmfromthe
sitetowhichtheyarelinkedby4-laneroads.
ThecanalwhichrunsparalleltotheMoselleis2kmdistantandthepossibility
ofaharbouriscontainedinSDAUplanning.
Thesiteis4kmfromHagondange;themostimportantsteelproducingcentres
arewithinan18kmradiusfromGarolor.
AtEuropeanlevel,theestateisveryeasilyaccessiblefromGerman,Belgian,
Netherlands,LuxembourgandofcourseFrenchmotorways..
TheCentreshouldthereforeofferlocalandregionalbutalsoandaboveall
Europeanstorageanddistributionfacilities.Forinstance,astoragewarehouse
forsparepartsforEuropewouldbeperfectlyin-keeping;distribution would
becarriedoutbytransporters presentonthesite.
VI.SOCIALASPECTS
ThefirstGarolorinstallation phase(forwhichtheECSCloanisasked)
shouldcreateaminimumof230directjobs.IfGarolordevelopsitsfacilities
atlaterstages,asplarined,thebusinesswillcreatemorethan650directjobs.
Takingaccountofthephysicalproximityofmajorsteelproducers,thesejobs
willgenerallybefilledbyformerECSCworkers.
t
VII.FINANCING PROGRAMME
Thesummaryfinancingprogramme(1979-1980)forthefirstphaseisasfollows:
Needs Ressources
(FFmillion)8,41
Taxesonconstruction 4.26Investment 24.75Capital
Erternal
fonds12.00
ECSCloan 8.60
29.01 29.01
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VIII .CONCLUSIONS
(a)TheCommission considers that theapplication inquestion complies with
Article 56(2a)oftheECSC Treaty andthat theplanned investment is
economically sound .Inconsequence ,theCommission authorises the
grant toGarolor S.A. ,fortheproject which itplans toimplement at
Ennery ,ofaloan ofFF8.6million maximum (some 1,497,000 EUA)or
equivalent value .Interest rebate will be44,910 EUAperyear forthe
first five years following payment orpayments ofthe loan .
(b)TheCommission invites theCouncil togive itsassent fortheforeooing
decision .
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