ARCHIVES HISTORIQUES 
DE LA COMMISSION 
 
 
 
COLLECTION RELIEE DES 
DOCUMENTS "COM" 
 
 
 
 
COM (83) 689 
 
 
 
Vol. 1983/0248 
  
 
Disclaimer  
Conformém ent au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983 
concernant l'ouverture au public des archives historiques de la Communauté économique 
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983, 
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003 
(JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents 
classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit 
règlem ent. 
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983 
concerning the opening to the public of the historical archives of the European Econom ic 
Communit y and the European Atom ic Energy Communit y (OJ L 43, 15.2.1983, p. 1), as 
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243, 
27.9.2003, p. 1), t his file is open to the public. Where necessary, classified documents in this 
file have been declassified in conformity with Article 5 of the aforementioned regulation.  
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom  1. 
Februa r 1983 über die Freigabe der historischen Archive der Europäischen  
Wirtschaftsgemeinschaft und der Europäischen Atomgem einschaft (ABI. L 43 vom  15.2.1983,  
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. Septem ber 2003  
(ABI. L 243 v om 27.9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit  
erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5  
der genannten Verordnung freigegeben.  
COM MISSION  
O F  T H E
EUROPEAN C O M M U N IT IE S
G e n e r a l S ecretariatC 0M (83) 689 final  
Brussels, 24 N o vem b e r 1983
FOR OFFICIAL USE ONLY
Com m unication from the C o m m issio n  to the Council  
-------------------------------------------------------------------------------------
Request for assent, pursuant to Article 5 6  (2a) of the E C S C  Treaty  
to the granting of a  conversion L o a n  to United Paper Mills/Shotton  
Paper C o m p a n y  Limited (United K ingdom )
C O M (83) 689 final

COMMISSION  
OF THE
EUROPEAN C O M M U N IT IE S
F O R  O FFIC IA L U S E  O N L Y
Com m unication to the Council
Subject :  Request for assent, pursuant to Article 56 (2a) of the E C S C  Treaty
to the granting of a  conversion loan to United Paper Mills/Shotton  
Paper C o m p an y, Limited (United Kingdom ),
I. T H E  C O M P A N Y  · · '  ;  .  ; '  N o . 382
Applicant :  Shotton Paper C o m p a n y , Limited.
Registered Office K e m p s o n  House,  
C am om ile Street,  
London, E C 3 A  Y A N
Parent co m p an y of  
applicantUnited PaperJMiIls Limited,  
(Yhtyneet Paperitehtaat O y )  
37601, Valkeakosi,
Finland
Recipient :  Shotton Paper C o m p an y, Limited
Field of activity of :  Newsprint paper production from  barked forest
recipi ent ,  timber. .  .
V
de :a Lei ?00, V ,- i 0 1 G  B /o ts e i·  1  c It V. 00*10- sb t/J  -J'1  · I cif« .1 **." ■  C  \  î*· It*
v - C  (VJ r I H  ·iU?l I V  l //

-  2 -
II. THE PROJECT
Description :  T h e  project consists of the construction of a  n e w  mill
in Shotton, North Wales, to produce newsprint (180 t./a  
in '88) from  barked timber draw n from  forests in  
Wales,England a n d  Scotland mostly o w n e d  b y  the U.K.  
Forestry C om m ission.
£  000
C o s t '  : L an d  ) 800 1  ? : ,<s00
:  Buildings J22,000 )
:  Plant and machinery 61,390
:  Other 12,200
:  Total 96,390 (± 165.307MioECU)
S ch ed u le :  m id '83 - Jan. 1986. y . . ·
- ·  -  ■ · .  -V  * · . ·: · ;.  · ·  : ·  ■  ·■ * ' r*  ·  Î .  : ‘  '* i'
M arket 5  '  (  :  T h e c o m p a n y  aim s at supplying about 1 5 %  of the U.K.
· ,  '  .  newsprint market (1.3 m.t./a.) almost all of w hich is
1  n o w  imported, mainly from  Scandinavia a n d  Canada, since
T. ' ■ · ■ '  ■  the very substantial fall latterly in U.K. dom estic
'  '  production.
Environm ent :  Environmental protection m easures in accordance
:  "  ;  ' 1  ·  ·  '  with current legislation /
T h e  sectoral and competition aspects of the project have b een closely exam ined ;  
th ey d o  not militate against the granting of the L o a n  applied for.
T h e  project appears to b e  economically so u n d  ; it will m a k e  a  significant  
contribution to the redevelopment of the region w hich is suffering the effects  
o f a  decline in E C S C  industries. -

ï t
- 3  -
III. T H E  REGION
Project location :  Shotton, Clwyd, North-East W ales
Unemployment rate :  19.3%  (22.5%  m ale) Shotton travel-to-work  
area, M arch  1983. U.K. average 13.8%  (17.1%  
male). U n em p lo ym en t rate in North W ales in­
creased from  9.5%  in M arch '79 to ■
18-3% . in M arch  '82. -
National aid status of project area :  Special D evelopm ent Area. \
T h e  E C S C  industry has been a n  important source of em ploym ent in the area.
IV . C O N F O R M IT Y  W IT H  A R TIC LE  56 O F  T H E  E C S C  T R E A T Y
E C S C  redundancies in  
project area1977 to '81 Shotton travel-to-work area lost  
7596 E C S C  jobs (72%). C lw yd
lost 9132 jobs -'y
i.e. 7 0 % .
J o b s  to b e  created by the project 250 jobs suitable for ex-E C S C  workers out of  
a  total of 276.
Training A  com prehensive training p ro g ram m e for n e w  
em ployees is planned a n d  a  detailed training  
m anual is being prepared.
T h e  C om m ission considers that the application complies with Article 56 (2a)  
of the E C S C  Treaty and that the n e w  jobs to b e  created b y  the project are  
capable of absorbing redundant E C S C  workers into productive em ploym ent.

- A  -
V. CONVERSION LO A N
L o a n  applied for £  20 m  (34.3 M io E C U )
L o a n  to b e  granted T h e  C o m m issio n  h as approved a  L o a n  of  
£  20 m  (about 34.3 M io E C U )
or equivalent to the above m entioned  
c o m p a n y  (1  ). i
Interest rebate 3  percentage points per year for five  
years o n  5.0 M ioE C U .
J o b  basis of interest rebate 250 jobs suitable for former E C S C  
industry workers, to w h o m  they will b e  
offered in priority.
VI. COUNCIL ASSENT
T h e  C om m ission requests the Council to give its assent to the foregoing  
decision. ,  ,
(1 ) In accordance with Article 56 application criteria (0J C  191, 16 July 1983).