ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(81)177
Vol.1981/0045

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COMMISSION
OFTHE
EUROPEAN COMMUNITIES
GeneralSecretariatCOM(81)177final
Brussels,10thApril1981
FOROFFIClALUSEONLY
REQUESTFORASSENT/PURSUANT TOART.56.2.a)OFTHEECSCTREATY
TOGRANTING ARECONVERSION LOANTOMITELTELECOMLIMITED.U.K.
(Communication fromtheCommission totheCouncil)
C0M(81)177final

COMMISSION
OFTHE
EUROPEAN COMMUNITIES
INTERNAL DOCUMENT
Communication totheCouncil
Subject:Requestforassent,pursuanttoArt.56.2.a)oftheECSCTreaty
togranting areconversion LoantoMitelTelecomLimited,UK.
I.THECOMPANY No318
Applicant :MitelTelecomLimited
RegisteredOffice :London.Administrative andmanufacturing facilities
aresituatedatSlough,Berkshire.
Par.en.tcompanyof :MitelCorporation ofCanadawhosesharesarequoted
applicant ontheToronto,MontrealandLondonStockExchanges .
Beneficiary :MitelTelecomLimited.
Fieldofactivityof:TheprincipalactivityoftheCompanyisthe
beneficiary production andsaleofelectronicprivateautomatic
branchexchangetelephonesystemsasdesignedby
-MitelCorporation .

-2-
II.THEPROJECT
Projectdescription :Theprojectisanexpansionandrelocation
ofthemanufacturing operationoftheelectronic
privateautomaticbranchexchangetelephone
systemscurrentlyeffectedfromSloughandthe
introduction ofa-manufacturing 'facilityfor
micro-electronic productsforincorporation in
thecompany'sswitchingproducts.Forthispur­
posetheCompanyisproposingtolocateanew
factoryof250000sq.ft.atCaldicot,Gwent.
Projectcost :Land ) 455
t000 :Buildings ;23,075
:Plantandmachinery 9,021
:Other
:Total 32,551
Projectschedule :Theprojectwillbeimplemented intwophasesand
itisanticipatedthatPhaseIwillcommencein
thefirstquarterof1981.Productionresulting
fromPhaseIexpenditure isexceptedduringthe
thirdquarterof1981.PhaseIIisscheduledtocommenceinmid1983andbe
completedbytheendof1983.
Market :MainlyUK,butalsoEurope.MiddleEastand
Africa.
Environment :Environment protection measuresinaccordance
withrégulations inforce.
Theprojectappearseconomically sound;itwillmakeaveryusefulcontribution
totheredevelopment oftheregionconcernedwhichisaffectedbyadeclinein
ECSCindustries.

-3-
III.THfcREGION
ProjectLocation Caldicot,Gwent,S.WaLes.
Unemployment rate12%inSouthGwent.Predictions of
unemployment levelsfortheshorterterm
rangefrom18%to25%.
Nationalaidstatusof
projectareaDevelopment Areawitheffectfrom
1s.tAugust.1980.
TheECSCindustryhasbeenanimportantsourceofemployment
inth?area.
IV.CONFORMITY WITHART'.5bOFTHEECSCTREATY
ECSCredundancies in
projectarea
JcbcreationcfprojectB.S.C.'sdeclinehasledtotheclosure
ofanumberofsmallworksinSouthGwent
andreductions inmanningatretained
works.Themostsalientdemanningoccured
atBSCLlanwern Workswithjoblossesof
4.400in1980.
About1.700jobs.
Training :Trainingwillbeprovidedbythe
Company.
TheCommission considersthattherequestcomplieswith
Art.562a)oftheECbCTreatyandthatthenewjob
opportunities offeredbytheprojectarecapableof
absorbingredundant ECSCworkersintoproductive employment .

RECONVERSION LOAN
Loanrequested t16m
Loangranted TheCommission hasapprovedaloan
ofb16m(about29.32MioECU)
orequivalenttotheabovementioned
companyinaccordancewithArt.56
operatingpolicies (O.J.No.C82/8
of29March1979).
Interestrebate :3%pointsperyearforfiveyearson
28.080,000 ECU
Jobbasisofinterestrebate:1,404jobssuitableforandtobe
offeredinprioritytoex-ECSCworker
COUNCIL_ASSENT
TheCommissioninvitestheCounciltogiveitsassenttothe
foregoingdecision.