ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(75)627
Vol.1975/0236

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(75)627final.
Brussels,9December 1975
COMMUNICATION TOTHECOUNCIL ,
RequestforailAssent,pursuanttoArticle56§2(a)ofthe
ECSCTreaty,forthegrantofaredevelopment loanto
Vald*Birn(UK)Ltd*
COIX75)627final#

c
COÎMJtTICATiasr TOTîffiCOUITCIL
Subject:RequestforanAssent,pursuanttoArticle$6§2(a)ofthe
ECSCTreaty,forthegrantofaredevelopment loantoVald.
Bim(UK)Ltd.
I.ESSEMTIAL INFORMATION
Vald.BirnA/S,Holstebro ,Denmark
Vald.BirnLtd.,Newcastle ,UIC
Establishment ofanironfoundry
Cambois,Blyth,Northumberland
3.793.000 £(+6.54millionu.a.)
1,140.000 £(+1.97millionu.a.)
192ofwhichthegreaterpartistobeofferedin
priority toex-coalminers.
Some39percentofthe11,921jcbslostintheBritishcoal
miningindustry during1973and1974worelocatedinthe
country'sNorthEastregion,anareaalreadyfacedwithsevere
unemployment problemsarisingfromlongterrachangesinthe
national economy.
Thepresentprojectw3.llcreate192newjobs,ofwhichitisexpectedthat/Sax"!1willbeofferedtocoal-miners made
redundant following theclosureoftheNetherton colliery in
January1974,whichresultedinalossof500jobs.Theenter­
prisehasindicated apreference forex-minors inselecting
personnel foritsfoundryandstatedthatinthecurrentlabour
marketsituationitwouldhavelittleoptionbuttoseekits
workforce amongstformerminers.Apollcaxrb
Beneficiary
Protect
Locp.tion
Investirent
Loanrequest
Jobscréâted
II.ADMISSIBILITY

-2-
III.THEUÏÏDERTAKIMÏ
Description sValdBimA/S
Le/ralstatus :LimitedCompany
Established :1941
Administrative
Headqy.arters sHolstebro ,Denmark
Registered capital sDlcr.1.CXX).000
IV.THEPROJECT
Theprojectinvolves theestablishment ofafoundry,basedon
disaraatic moulding machines ,ona12acresiteattheformerCambois
colliery nearNewcastle .Thefoundrywillbefedonlowgradeiron
scrapandwillproduceavarietyofcastings destined fortheauto­
motiveandengineering industries .Theprocessiselectrically powe­
redandconsequently ispollution free.
Itisenvisaged thattheprojectwillbecomeoperational in1980
intwostages.Production willstartinJuly1977sA1»100tonseind
willrisefrom11,000tonsyearlyin1930toapproximately 30,000tons
yearlyby1936.
V.SOCIAL ASPECTS
Theapplicant hasstatedthatatotalworkforceof192employees willbe
required whentheprojectisfullyimplemented in1930.Ofthetotal
numberof192jobs,140willbefilledbesemi-skilled and20byskilled
workers.Theremaining 32jobsareforadministrative andtechnical staff.
Theapplicant hasplannedanextensive training programme bothforkey
shopfloorpersonnel ,whichincludesinstruction totakeplaceatthe
applicant'sDanishplant,andfortheproduction workersintheU.K.
Theapplicant statesthatsafetyregulations forthecorrecthandling
ofequipment andmachinery willbeestablished inclosecontactwiththe
U.K.authorities .

VI.THEMRKET
i-\Vald.Birnatpresentproducea'rangeofhighgradecastings ^n,their
Danishfactories .
Production intheU.K.willcovermainlythelocalmarketfromwhich
existing customers can"bemorereadilysupplied.Exporttothe ;
Scandinavian market,easilyaccessible fromNewcastle ,isalso
envisaged .
Itisexpectedthattheenterprise 'sBritishfacilitywillpermita
greaterdiversification ofitsworkload bothinDenmark andinthe
UnitedKingdom.
VII.FINAETCIAL ASPECTS
Vald.Birnisaprivatecompany,registered inDenmark,withashare
capitalof1millionD.Kr.
Thesummarized financing planfortheprojectisasfollows:'
£'000
Fixedinvestment 3,793 *Ownresources 942
; •D.I.interest relief
grant ■<336
D.I.Investment grant825
ECSCloan 1.140
Bankborrowing 500
t=âi=2=a !■-'
With25percentofthecostoftheinvestment beingprovided
•bythefirm'sownresources theplancanberegarded asacceptable .

-4-
VIII.COFCUJSIŒTS
(a)TheCommission ,afterconsidering "thecaseinallits
variousaspects,considers thattherequestcomplies
withArticle56§2(a)oftheECSCTreatyandthatthe
proposed investment iseconomically sound.Inconsequence
theCommission hasapprovedaloantoValdBim(U.K.)Ltd.
foramaximumamountof£1.14million(+1.97millionu.a.)
oritsequivalent valuewhichwillbenefit fromthespecial
conditions ineffectonthedayofdispatchoftheoffer
letter.
(t>)TheCommission invitestheCounciltogiveitsassentto
theforegoing decision .