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Vol.1982/0128

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C0MM'5.SI0N
OFTHE
EUROPEAN COMMUNITIES
GeneralSecretariatCOM(82)364 final
Brussels,21June1982
FOROFFICIAL USEONLY
Applicationforreconversion loanNo345pursuanttoArticle56ofthe
ECSCTreaty,onbehalfofCreditGradeLimited,UnitedKingdom
(Communication fromtheCommissiontotheCouncil)
C0M(82)364final

COMMISSION
OFTHE
EUROPEAN COMMUNITIESV
INTERNAL DOCUMENT
Communication totheCouncil
Subject:Requestforassent/pursuanttoArt.56.2.a)oftheECSCTreaty
togranting areconversion loantoCreditGradeLimited,UnitedKingdom.
I.THECOMPANY No.345
Applicant CréditGradeLimited
Registered Office London
Parentcompanyof
applicantThecompanyhasbeenformedandisownedby
Mr.Sohailwhoisaninternational' businessman
withcommercial interestsintheU.K.andthe
RepublicofPakistan.
Beneficiary CréditGradeLimited
Fieldofactivityof:Theapplicant companyproposestosetupatextile
beneficiary finishingplantwhichwillimportgreycottoncloth
fromthepromoter'sexistingproductionunitsinPakistan,orpurchasecloth
fromexistingU.K.manufacturers .Thefactorywillprovidebleaching,dyeing,
printingandstitchingfacilitiestoconverttherawfabricintosheets,pillow
cases,towelsandotherdomesticcottonproducts.Inaddition,thefactorywill
produceknittedpolyestercottonfabricfortheproductionofhouseholdlinen
products.

-2-
II.THEPROJECT
Projectdescription :Theprojectinvolvestheinstallation of
sophisticated computercontrolledequipmentinaleasedfactoryunit.
Theprojectedcapacityintonnes,foreachmainproduct
groupisasfollows,basedonone8-hourlyshift:
U.K.producedpoly-cotton 319p'.a.
U.K.producedtowelling 405"
Importedgreycloth 576"
Projectcost :Land )
:Buildings; """
:Plantandmachineryt3.9million
:Other –
:Total t3.9million (6.58MioECU)
Projectschedule :Majoritemsofequipmentrequiredfortheproject
willbeacquiredfromasourcewithintheEEC.
Itisenvisagedthattheprojectwillbe
established bytheendofthefourthquarter1981
Market :Thecompanyestimatesthat60%ofturnoverwill
beavailableforexport,primarilytotheU.S.A.,
Scandinavia,theMiddleEast,FranceandWest
Germany,allcountriesinwhichthecompanyhas
existingmarketknowledgeandcustomers.
Environment :Environment protectionmeasuresinaccordance
withrégulations inforce
Thesectoralandcompetitionaspectsoftheprojecthavebeenclosely
examined;theydonotruncountertograntingtherequestedloan.
Theprojectappearseconomically sound;itwillmakeaveryusefulcontribution
totheredevelopment oftheregionconcernedwhichisaffectedbyadeclinein
ECSCindustries.

-3-
III.THEREGION
Projectlocation
Unemployment rate
Nationalaidstatusof
projectareaRassauIndustrial Estate,
EbbwVale,Gwent,S.Wales.
Latestavailablefiguresshow
theunemployment ratetobe
21.2%intheEbbwValetravel-to-
workarea.
Specialdevelopment areaforthe
purposeofU.K.regionalpolicy.
TheECSCindustryhasbeenanimportantsourceofemployment
inthearea.
IV.CONFORMITY_WIIH_ART._56_OF_THE_ECSC_TREATY
ECSCredundancies in
projectareaTheendofsteelmakingatEbbwVale
hasledtoabout3,500'redundancies
overthelastfouryears.
Jobcreationofproject
TrainingBytheendof1985about155people
willberecruited .Recruitment
willcommenceinthefourthquarter
of1981.
Thecompanyispreparing atraining
programmetoprovide.theworkforce
withtherequiredskills.The
maintenance engineers andthedesign
staffwillhavetherequiredskills
whenrecruited .
TheCommission considersthattherequestcomplieswith
Art.562a)oftheECSCTreatyandthatthenewjob
opportunities offeredbytheprojectarecapableof
absorbingredundant ECSCworkersintoproductive employment .

RECONVERSION LOAN
Loanrequested fc1.75M
Loangranted TheCommissionhasapprovedaLoanof
fc1.75M(about2.954MioECU)
orequivalenttotheabovementioned
companyinaccordancewithArt.56
operatingpolicies(O.J.No.C82/8
of29March1979).
Interestrebate :3%pointsperyearforfiveyearson
2.06 MioECU.
Jobbasisofinterestrebate:103jobssuitableforandtobeoffered
inprioritytoex-ECSCworkers.
COUNCIL_ASSENT
TheCommissioninvitestheCounciltogiveitsassenttothe
foregoingdecision.