ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(79)751
Vol.1979/0251

Disclaimer
Conformément aurèglement(CEE,Euratom)n°354/83duConseildu1erfévrier1983
concernantl'ouvertureaupublicdesarchiveshistoriquesdelaCommunauté économique
européenne etdelaCommunauté européenne del'énergieatomique(JOL43du15.2.1983,
p.1),telquemodifiéparlerèglement(CE,Euratom)n°1700/2003du22septembre2003
(JOL243du27.9.2003,p.1),cedossierestouvertaupublic.Lecaséchéant,lesdocuments
classifiésprésentsdanscedossierontétédéclassifiés conformément àl'article5dudit
règlement.
Inaccordance withCouncilRegulation(EEC,Euratom)No354/83of1February1983
concerningtheopeningtothepublicofthehistoricalarchivesoftheEuropeanEconomic
Community andtheEuropeanAtomicEnergyCommunity (OJL43,15.2.1983,p.1),as
amendedbyRegulation(EC,Euratom)No1700/2003of22September2003(OJL243,
27.9.2003,p.1),thisfileisopentothepublic.Wherenecessary,classifieddocuments inthis
filehavebeendeclassified inconformitywithArticle5oftheaforementioned regulation.
InÜbereinstimmung mitderVerordnung(EWG,Euratom)Nr.354/83desRatesvom1.
Februar1983überdieFreigabederhistorischen ArchivederEuropäischen
Wirtschaftsgemeinschaft undderEuropäischen Atomgemeinschaft (ABI.L43vom15.2.1983,
S.1),geändertdurchdieVerordnung (EG,Euratom)Nr.1700/2003vom22.September2003
(ABI.L243vom27.9.2003,S.1),istdieseDateiderÖffentlichkeit zugänglich.Soweit
erforderlich,wurdendieVerschlusssachen indieserDateiinÜbereinstimmung mitArtikel5
dergenanntenVerordnungfreigegeben.

COMMISSION
OFTHE
EUROPEAN COMMUNITIES
GeneralSecretariat
REQUESTFORASSENT/PURSUANT TOARTICLE56.2aOFTHE
ECSCTREATYTOGRANTING ARECONVERSION LOANTO
"ALFREDTEVESLTD.''UNITEDKINGDOM
(Communication fromtheCommission totheCouncil)
COM(79)751final

COMMISSION
OFTHE
EUROPEAN COMMUNITIES
INTERNAL DOCUMENT
COMMUNICATION TOTHECOUNCIL
.Subject;Requestforassent,pursuanttoArticle56.2aoftheECSCTreaty
tograntinggreconversion loantoAlfredTevesLtd.,UnitedKingdom.
I.ESSENTIAL INFORMATION
Applicant
Beneficiary
Project
Location
Investment
Loanrequested
Jobscreated
interestreductionAlfredTevesLtd.,U.K.
AlfredTevesLtd.,U.K.
Expansionofanexistingfactorytomanufacture
discbrakes,boostersandwheelcylinders.
Waun-y-PoundIndustrialEstate,EbbwVale,
Gwent,SouthWales.
trM
t3.5M(+5.65MEUA)
300newjobs
132,000EUAperyearforfiveyears
II.Conformity withArticle56oftheECSCTreaty
TheprojectislocatedintheEbbwValetraveltoworkareawhichisco-
terminuswiththeBlaenauGwentdistrict.ThewholeofBlaenanGwentis
aspecialdevelopment areaforthepurposesofUnitedKingdomregional
development policyandanationalpriorityareafortheEuropeanDevelopment
Fund.BlaenauGwenthashadahistorical dependance onthecoalandsteel
industriesformostofitsemployment andevenasrecentlyas1976these
twoindustries accountedforoveronethirdoftotalemployment (censusof
employeesinemployment 1976).
Onthemanufacturing sidesteelmakingwasthedominantactivityproviding
employment notonlyforresidentsofBlaenauGwentbuttothesurrounding
districts.ThedecisiontoendsteelmakingatEbbwValehastherefore
represented amajorsetbackfortheareainemploymentterms,andhas
broughtforwardplanstocreateasrapidlyaspossiblealternative employment
opportunities bymeasuresintendedtoencouragethegrowthandestablishment
ofnewmanufacturing enterprises .
./.
Provisionoladdress :RuedelaLoi200,B–1040Brussels–Téléphoné350040-358040–Télégraphieaddress:«COMEURBrussels»–
Telex:.COMEURBRU 21877.

Measuresforthearea'sre-development includethespecialsteelclosure
factorybuildingprogrammeandtheprovisionofadditionalindustrialland
throughthedevelopmentofRassayasamajorindustrialestate.Inaddition,
BlaenauGwentistoretainitsspecialdevelopment areastatuswhenthe
recentlyannouncedchangesintheWalesAssistedAreasarefullyphasedin
by1981.Substantial incentiveswillthereforecontinuetobemadeavailable
inordertoachievetheregionaldevelopmentobjectivesforthearea.
Thepresentnonmetalmanufacturing sectorremainssmalldespiteeffortsto
increasetherangeandthenumberofnewenterprises .The1976censusof
employeesinemployment showsthattheservicesectorinBlaenauGwentemploys
10,000people,however,thebulkofthesejobswereinpublicadministration
includingeducational andschoolservicesetc.Nosignificant growthis
expectedtoariseinthedistributive andcommercialsectorswhichpresently
accountsforonlyasmallpercentageofemployeesinemployment.Overall,
verylittlenewgrowthcanbeexpectedfromtheservicesector.
Likemostoftheothervalleyareasthegrowthanddeclineofthepopulation
hasbeenassociatedlargelywiththefortunesofcoalminingandlaterto
thatofsteelmanufacture .Since1951thepopulation ofthedistrictof
BlaenauGwenthasfallenfrom98,600to85,600in1971andanestimated
83,000in1976.Mostofthelossofpopulation hasbeenthroughmigration
outofthevalleyareas.Thisprocesshastendedtochangethestructure
ofthepopulation withthebiastogreaterconcentration amongthoseof
pensionable age.
Latestavailablefiguresshowtheunemployment rateforBlaenauGwenttobe
12.9%.Thesefiguresareconsiderably higherthantherateforWalesat8.4%.
Thepatternofunemployment fortheareahasbeenconsistently higher
especially amongmalesthantherateforWalesandthepriorities areto
reducetherateofunemployment andtoprovidenewopportunities forincreases
inactivityrates.TheAlfredTevesprojectisexpectedtomakeauseful
thoughsmallcontribution toachievingtheseobjectives .
III.THEUNDERTAKING
TheLoanisrequestedbyAlfredTevesLimitedwithheadadministrative office
andfactoryatWaun-y-PoundIndustrialEstate,EbbwValeinSouthWales.The
companywasincorporated onOctober29,1973andhasitsregisteredofficein
London.
ThefullypaidsharecapitalofAlfredTevesLtd.,amountstot100,000.The
sharesareheldbyITTIndustriesLtd.,whichisultimately ownedby
International TelephoneandTelegraphCorporation (ITT).
AlfredTevesLtd.producebrakecomponentsfortheBritishmarketandfor
exports,primarilytoTevesGermany.AsofJune30,1979,195personswere
employedbyAlfredTevesLtd.
IV.THEPROJECT
TheprojectisintendedtoprovideadditionalcapacitytotheexistingandfullyutilisedfactoryontheWaun-y-PoundIndustrialEstate.

-3-
Theexpansionispredominantly requiredfortheproduction andsaleof
newgeneration discbrakesandboosterstoU.K.carmanufacturers and
foranincreasedvolumeofcylindersfortheaftermarket .
The60,000sq.ft.buildingrequiredfortheexpansionwillbeleased
fromtheWelshDevelopment Agency.
Production capacityformainproducts:(000piecesp.a.)
Beforeinvestment Afterinvestment
Calipers 500 1,400
Boosters - 200
Cylinders 700 1,600
Theprojectwillallowconsiderable increaseofsalesoncompletionofthe
projectin1982.
Theprojectwillbeimplemented asfollows:
Startbuildingextension (byWDA) June1979
Calipermachineryinstalled March1980
Buildingextensionfinished May1980
Caliperproductiontostart May1980
BoosterproductiontostartThirdquarterof1980
Newcylinderproductiontostart 1981
Fullproductionlevelsreached 1982
V.EMPLOYMENT
Theprojectisplannedtocreate300newjobsofthefollowingtypes:
Skilled 50
Semi-skiIled200
Unskilled ^
20Clerks
Technicians20
300
Inrecruitingthecompanywillgiveprioritytoex-ECSCworkers.The
companybelievethatmanyoftheskillsanddisciplinesacquiredby
steelworkerswillbeofvaluetotheirproject.

Thepreliminary recruitment scheduleprovidesfor100personstobe
hiredineachoftheyears1980-1982.Trainingwillbeprovidedby
thecompany.Wageswillbebasedonthewagestructureexistingin
thecompany'scurrentoperation.
AlfredTevesLtd.areinclosecontactwithfirmslayingoffECSC
workersandtheircooperation withBritishSteelCorporation dates
backtothestart-upoftheirplantin1974.
VI.ENVIRONMENTAL ASPECTS
TheprojectisanextensionoftheAlfredTevescurrentoperation
whichhasnevercausedanyenvironmental problems.Contamination
risktopersonnel hasneverarisen.
Theonlypossibility ofpollutanteffluentcouldarisefromcadmium
plating.Thisisprevented byprocessing theeffluentthroughafully
automaticwatertreatmentplantandsubsequently amudpittoeliminate
solidmatterbeforedischarging intothesewagesystem.Thusthe
contamination isheldfarbelowthelimitsacceptedbyauthorities .
Theplantdoesnotoperateunderanyexemption.
VII.MARKET
TheprojectreflectsAlfredTeves'successfuleffortstogainasizeable
shareintheBritishmarketforbrakesystems,bothintheoriginal
equipmentandaftermarket business.Sofarrawmaterialhadbeen
importedfromGermanyandfinishedproductshadbeenre-exported
toGermanyduetolackofdemandonthepartoftheBritishcar
manufacturers .ThissituationhaschangedandAlfredTevesgaineda
supplycontractwithamajorU.K.carmanufacturer .Theaimof
AlfredTevesLtd.istotripletheircurrent5%marketshareinthe
Britishbrakemarketuntilthenewoperationreachesfullproduction
levels.
VIII.FINANCING
Requirements <000fc) 197919801981 1982 TOTAL
Capitalexpenditure
Building(tenant'sextras)
Plantandmachinery 1,1653,4021,100 4836,150
2,3661,376 8584,600850 850
Workingcapital
Totalrequirements 1,1656,6182,4761,34111,600

-5-
Resources (000b) 1979 1980 1981 1982 TOTAL
OwnResources (47)237 1,240 1,982.53,412.5
ShareCapital 1,000 1,000
RegionalDevelopment Grant 256 935 2421,433
InterestReliefGrant 375 375 77.5827.5
Bank"Overdraft 1,2121,250 (74)(961)1,427
ECSCLoan 3,500 . 3,500
TotalResources 1,1656,6182,4761,34111,600
IX.CONCLUSION
TheCommission considersthattherequestcomplieswithArticle56(2a)
oftheECSCTreatyandthattheproposedinvestmentiseconomically sound.
Inconsequence theCommission hasapprovedaloantoAlfredTevesLtd.
foritsprojectinEbbwVale,Gwent,SouthWales,foramaximumamount
oft3.5M(+5.65MEUA)oritsequivalent amount.Interestistobe
reducedby132,000EUAeachyearforthefirstfiveyearsafterthe
paymentorpaymentsoftheloan.
TheCommissioninvitestheCounciltogiveitsassenttotheforegoing
decision.
V