WRITTEN QUESTION E-1446/99

by Erik Meijer (GUE/NGL) to the Commission

(1 September 1999)

Subject: Subsidised relocation of Akcros Chemicals B.V. from Roermond to Greiz

1. Is the Commission aware that Akcros Chemicals B.V. (formerly Haagen Chemie, owned by AKZO Nobel Chemicals) which produces lead and metal stearates and non-vinyl semi-finished products for the plastics industry intends to close its establishment in Roermond (Limburg, Netherlands) with 1 200 workers instead of carrying out its original intention of transferring production to the Limax site (also owned by Akcros) in Roermond-East, which is due to be developed?

2. Is the Commission also aware that the reason given by AKZO Nobel for this closure in Roermond a town with a high level of unemployment by Dutch standards is an investment subsidy of 35 % which it is being given to transfer non-vinyl production to Greiz (Thuringia, Germany) while the production of lead stearates is to be transferred to Düren (North Rhine-Westphalia, Germany)?

3. Can the Commission say whether this transfer is being wholly or partially funded by European Union money? If so, why? How does the expected growth in the number of jobs in Greiz match up to the expected job losses in Roermond? What are the costs of each new job?

4. Does the Commission think it right that promoting employment in an area with a shortage of jobs should be carried out by using public subsidies to take jobs away from another area where there is also a shortage? If not, what is the Commission intending to do to stop firms' unnecessary juggling with jobs and the loss of employment?

Supplementary answer given by Mr Barnier on behalf of the Commission

(18 November 1999)

The Commission does not receive information on the commercial activities of private companies such as AKZO Nobel Chemicals except where matters of Community law are involved. With regard to the reorganisation of AKZO's production facilities, the Commission has been informed by the authorities of the Land of Nordrhein-Westfalen, that no Community or national assistance has been granted to the plant in Düren.

The Land of Thüringen has indicated that a subsidy of DM 2 120 000 from the European regional development fund (ERDF), representing 50 % of the total public aid, has been granted to the AKROS Chemicals plant in Greiz. The grant was awarded under the national investment premium scheme operating in Germany, the so-called Gemeinschaftsaufgabe Regional Wirtschaftsförderung. The scheme has been approved by the Commission under the rules governing competition policy in accordance with Article 87.3.a of the EC Treaty (ex-Article 92).

Thüringen is eligible both as an Objective 1 region under the structural funds and as an area eligible for state aids under Community competition policy. Thüringen receives support from the structural funds in order to promote catching up with the rest of Europe in socioeconomic terms, and some of this support is used to attract capital investment to the region. The award of a subsidy to AKROS Chemicals is intended to enable around 150 jobs to be safeguarded at the Greiz plant. Total public support per job amounts to around DM 28 000.

For the next round of structural funds programmes beginning next year, under Article 30 of Regulation (CE) no 1260/1999 of 21 June 1999, laying down the general provisions of the structural funds(1), new conditions will apply to the granting of Community aid in such circumstances. In effect, the regulation requires that the Member States seek reimbursement of Community aid granted to an operation if there is a substantial modification resulting notably from a cessation or change in the location of a productive activity within five years of the date of the decision granting such support.

In the guidelines for the new programmes published by the Commission in June 1999, it is also stated that the structural funds should not be used for the mere relocation of existing activities.

(1) OJ L 161, 26.6.1999.