ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(79)608
Vol.1979/0207

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COMMISSION
OFTHE
EUROPEAN COMMUNITIES
GeneralSecretariatC0M<79)608final
Brussels,7November1979
FOROFFICIAL USEONLY
REQUESTFORASSENT,PURSUANT TOARTICLE56.2A
OFTHEECSCTREATYTOGRANTING ARECONVERSION
LOANTOSONY(UK)LTD.,UNITEDKINGDOM
(Communication fromtheCommission totheCouncil)
COM(79)608final

COMMISSION
OFTHE
EUROPEAN COMMUNITIES
INTERNAL DOCUMENT
COMMUNICATION TOTHECOUNCIL
Subject:Requestforassent,pursuanttoArticle56.2aoftheECSCTreaty
tograntingareconversion loantoSony(UK)Ltd.,UnitedKingdom.
I.ESSENTIAL INFORMATION
Applicant
Beneficiary
Project
Locati.on
Investment
Loanrequested
Jobscreated
InterestreductionSony(UK)Ltd.,UnitedKingdom
Same
Expansionofanexistingproductionfacility
forthemanufacture ofcolourtelevision sets
Bridgend,SouthWales
b3.8million
b1.8million2.8355"•">HionEUA)
260
60,000EUAperyearforfiveyears.
II.CONFORMITY WITHARTICLE56OFTHEECSCTREATY
TheprojectislocatedintheBridgendEmployment Exchangewhichformspart
ofthePortTalbotTraveltoWorkArea.Withintheuppervalleysofthe
TWA,coalminingisstillanimportantsourceofemployment buttothe
mouthofthevalleysandalongthecoastalplainmanufacturing andthe
servicesaretheimportantsourcesofemployment .The1976Censusof
EmployeesinEmployment showsthatforthewholeoftheTraveltoWork
Areasome30,500peoplewereemployedinthemanufacturing sector,45%
ofwhichweresteelworkersemployedinthegiantsteelplantatPortTalbot
5,500workersengagedinmining;8,000inconstruction andabout31,400
inotherserviceindustries .
•••/•••
Provisionoloddress:RuedeloLoi200.B–1040Brussels–Telephone350040-358040–Telegrophicoddress:«COMEURBrussels»–
Telex:.COMEURBRU 21877.

-2-
BridgendhadforaLongperiodbeenanimportantserviceandcommunication
centredatingbacktotheperiodwhentheexportation ofcoalwasatits
peak.Itemerged,however,duringthepostwaryearsasanimportant
industrialcentre.By1945theBoardofTradehaddevelopedtheOldRoyal
Ordnancefactory,whichwasbuiltbeforetheFirstWorldWartoformthe
BridgendIndustrialEstate.Thissitehadgrownbythe1950stoemploy
some3,000peopleandintheearly1960semploymentontheBridgend
IndustrialEstatehadgrowntoabout5,000.Since1966,28newmanufacturing
establishments areknowntohaveopenedinthePortTalbotTraveltoWork
Area,andarestillsurviving.Theseestablishments currentlyemploya
totalof2,450people.Itisexpectedthattheareawillcontinuetogrow
asamajorindustriallocationinSouthWalesandthecompletionoftheM4
motorwayshouldincreaseitsattactivenesstonewindustry.However,
muchofthenewjobswhichareexpectedtobegeneratedintheareawill'
needtoreplacejobslostintraditionalindustriessuchassteel.New
investmenttocreateadditionaljobsortostrengthenthelong-termprospects
ofexistingfirmsneedstobeencouraged.
Thelatestavailablefiguresshowtheunemployment ratetobe6.9%whichis
lowerthantherateforWalesasawhole(8.2%)buthigherthantheaverage
ofthewholeofGreatBritain(5.6%).Nevertheless,thereareover5,000
peoplestillunemployedintheareaofwhich3,600aremales.Therecent
closureoftheEastMoorsSteelworksandDuportSteelworkshaveplaced
additionalpressureonavailableemploymentopportunities inthisandadjacent
areas.
III.THEUNDERTAKING
Sony(UK)Ltd.,BridgendPlantwassetupasthefirstJapanesecolour
televisionmanufacturer intheUKduringJanuary1973.Theactual
productionofcolourtelevisionsetscommencedinJune1974,andcurrent
modelsproducedare18",20"and22"setsforthehomemarketand
22"setsfortheexportmarket.Theproductioncapacityoftheplantis
approximately 120^000setsperannumofwhichapproximately 50%is
exportedtoEECandEFTAcountries,Scandinavia,MiddleEastandAfrica.
ThemanningleveloftheplantduringMarch1979was630employeesandthe
floorareaofthepremisesoccupiedis126.140sq.ft.
IV.THEPROJECT
Theexpansionprojectisintendedtoincreasetheexistingproduction
facilityforthemanufacture ofcolourtelevisionsetsatBridgendto
190,000televisionsetsperannum.Thisincreaseincapacitywillbeachieved
bytheprovisionofanewproductionareaandancillaryprocessestogether
withofficeandwelfarefacilitiesalongsidetheexistingfactory.Thefloor
areaofthenewpremiseswillbe138.026sq.ft.

Theinvestment programmeisscheduledasfollows:
Land
Buildings(including
leaseholdimprovement )1979/80 1980/81 Total
b'000 b'000 b'000
900 250 1.150
PlantandMachinery 2,093 470 2^563
Vehicles(forkliftsetc) !0O - 80
MARKET3>.073 720 3,793
Theexpansionprojectisaimedatpenetratingthemarketforlargescreen
sizecolourtelevisionsetswhichexistsparticularly inEuropeancountries
suchasGermany,Holland,ItalyandFrance.
Sony'ssatesforecastby1982comparedtothetotalEuropeanmarketisas
follows
Sales('000sets)Estimated :
TotalEuropeanMarket
SonySales
(18",20"S22")SonySales
(largescreen)SonySales
TotalSales
(largescreen)Sales
Total
UK 68 6 74 230 2.000
France 18 10 281.000 1.800
Germany 48 481.075 2.240
*Others 40 402.245 4.560
86 104 1904.550 10.600
OthersincludeHolland,Italy,Switzerland,Austria,Scandinavian countries.
AscanbeseenfromabovetotaltargetmarketshareofSony(UK)Ltd.is1.8%.
Marketshareoflargescreensizeis2.3%.

-4-
VI.EMPLOYMENT
Thetotalnumberofjobscreatedbytheprojectisestimatedat260.
Category NumberofJobs
Manufacturing Operator 195
Clencal/Administrative /Techmcal 41
Management/Supervisory 16
Cleaners 8
260
Therecruitment scheduleisasfollows:
By Manufacturing Clerical/Admin.Managerial Cleaners
Operator Technical Supervisory
May1980 61 15 6 5
May1981 43 10 5 3
May1982 91 16 5 -
Total 195 41 16 8
Ofthe260jobs90wouldbesuitableformalesand170forfemalelabour.
Thelargestproportionofthejobswouldbeformanufacturing operators
whowouldbetrainedonsitebySonyfor4weeks.Thepreferredagegroupwould
be17years-40years.
Theclerical/administrative /technicalgroupwouldrequirepeoplewitha
widerangeofskillsvaryingfrompersonnel,accountingtotechnicians.
Themanagerial/supervisory groupwouldrequirepeoplewithaprovenrecord
ofsuitableexperienceatahighermanagementlevel.
VII.FINANCING
Thetotalfinance(1979-82)requiredis:
b'OOO
Land
Buildings 1.150
PlantandMachinery 2,563
Vehicles 80
AdditionalWorkingCapital 8,155
11,948
•■■/mmm

-5
Thesources offinance envisaged are :
Funds generated
from operationsfc'000
Regional Development Grants
ECSC loanInterest -Relief Grant .8,038
450
460
1.800
Bank loans 1*200
11,948
VIII .CONCLUSION
TheCommission considers that the request complies with Article56 (2a)of
theECSC Treaty andthat theproposed investment iseconomically sound .
Inconsequence theCommission hasapproved aloan toSony (UK)Ltd .for
itsproject atBridgend ,South Wales for amaximum amount oft1.8million
<+2.8355 miIlion EUA)oritsequivalent amount .Interest istobereduced
by60,000 EUAperyear forthefirst five years after thepayment or
payments ofthe loan .
TheCommission invites theCouncil togive itsassent tothe foregoing
decision .