2000/250/EC: Commission Decision of 16 November 1999 on the State aid which Italy plans to grant for the creation of new shipyards at Oristano (Sardinia) and Belvedere Marittimo (Calabria) (notified under document number C(1999) 4839) (Text with EEA relevance) (Only the Italian version is authentic)
Date: 1999-11-16
Institutions: European Commission
Subjects: Calabria, Sardinia, State aid, application of EU law, control of State aid, shipbuilding

29.3.2000

EN

Official Journal of the European Communities

L 78/23

COMMISSION

COMMISSION DECISION

of 16 November 1999

on the State aid which Italy plans to grant for the creation of new shipyards at Oristano (Sardinia)
and Belvedere Marittimo (Calabria)

(notified under document number C(1999) 4839)

(Only the Italian version is authentic)

(Text with EEA relevance)

(2000/250/EC)

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European
Community, and in particular the first subparagraph of Article
88(2) thereof,

Having regard to the Agreement on the European Economic
Area, and in particular Article 62(1)(a) thereof,

Having regard to Council Directive 90/684/EEC of 21
December 1990 on aid to shipbuilding (1), whose application
was extended by Regulation (EC) No 2600/97 (2),

Having regard to Council Regulation (EC) No 1540/98 of 29
June 1998 establishing new rules on aid to shipbuilding (3),

Having called on interested parties to submit their comments
pursuant to the first subparagraph of Article 88(2) of the EC
Treaty, and having regard to their comments,

Whereas:

(1)

I. PROCEDURE

By letters dated 17 November 1997 and 6 March 1998,
registered by the Commission on 18 November 1997
and 12 March 1998 respectively, the Italian authorities
notified the Commission of two identical plants to grant
investment aid for the construction of two new ship-
yards under Decree-Law No 415 of 22 October 1992,
converted by Law No 488 of 19 December 1992 on
regional investment aid in Italy (hereinafter referred to as
Law No 488/92).

Further information was requested on the first project
notified, and the Italian authorities' reply was trans-
mitted at the same time as they notified the second
project.

(2)

By letter dated 14 July 1998, the Commission informed
the Italian Government that it has decided to initiate the
procedure laid down in Article 88(2) of the EC Treaty in

(1) OJ L 380, 31.12.1990, p. 27.
(2) OJ L 351, 23.12.1997, p. 18.
(3) OJ L 202, 18.7.1998, p. 1.

respect of the aid. The Italian authorities submitted their
comments to the Commission by means of letter No
3896 dated 2 March 1999 from their Permanent Repre-
sentative's Office. The Commission decision to initiate
the procedure was published in the Official Journal of the
European Communities (4), with an invitation to interested
their comments. The Commission
parties to submit
received
and
forwarded them to the Italian Government, which was
given the opportunity to react.

from interested

comments

parties

(3)

(4)

By letters dated 18 September 1998 and 5 August 1999,
the Italian authorities sent the Commission comments
and relevant information for the purpose of assessing
the two projects.

II. DESCRIPTION

a European consortium (Euroinvest)

The investments are based on project studies carried out
by
grouping
together small and medium-sized enterprises (SMEs) and
trade associations, particularly in Italy, Greece and
Portugal.

The industrial objective is to build twin-hull and single-
hull fast ferries, for which, according to the studies on
which the project is based, the market is booming. The
technology exists and is already used by another Italian
shipyard specialised in this type of vessel. In terms of
technology and innovation, the type of vessels to be
built meets the most up-to-date standards for high-speed
ships.

The aim of each of the projects, the unit investment cost
of which is ITL 89,3 billion, is to build one vessel per
year, representing 80 000 man-hours of labour per year
and employing around 50 workers.

(4) OJ C 307, 7.10.1998, p. 8.

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(5)

(6)

(7)

(8)

(9)

The aid would be granted under the Italian regional
investment aid scheme laid down by Law No 488/92. In
both cases the shipyards are locted in Objective 1
regions, in which investment aid may be granted up to a
maximum of 50 % nge plus 15 % gge for SMEs. Having
due regard to the planned mount of the aid, which is
ITL 53,4 billion for Oristano and ITL 54,6 billion for
Belvedere Marittimo, and on the basis of
the costs
eligible under the guidelines on national regional aid (1),
the total net grant equivalent of the aid is 45,75 % and
42,34 % respectively.

In its request for further information the Commission
stated that an operation of this nature could possibly be
contemplated only on condition that, as stipulated in
Article 6 of Directive 90/684/EEC, the new capacity
directly replaced pre-existing capacity that had recently
been closed.

In their reply the Italian authorities were unable to
provide a precise list of shipyards deleted from the
Italian special register of shipyards or to state whether
the capacity of recently closed yards corresponded to the
new capacity that was to be created.

III. COMMENTS FROM INTERESTED PARTIES

in
During the procedure the French authorities sent
comments, in response to the Commission's invitation,
by letter dated 10 November 1998. They stressed above
all
shipbuilding
industry and stated that existing shipyards in the EU
the demand for high-speed
were sufficient
vessels.

capacity problems

facing the

to meet

the

IV. COMMENTS FROM ITALY

By letter No 6239 dated 18 September 1998, the Italian
the notified
authorities informed the Comission that
project at Belvedere Marittimo had been modified and
no longer involved building vessels falling within the
scope of
the Community rules. Notification on the
project was therefore withdrawn. As far as the project at
oristano was concerned, an agreement was to be entered
into with the Clemna shipyard at La Spezia with a view
to transferring the relevant capacity.

the Commission's request,

At
the Italian authorities
provided, by letter dated 9 August 1999, more detailed
information confirming that there was an alternative
plan for the Belvedere Marittimo site,
involving the
construction of 38-metre catamarans with a tonnage of
less than 100 grt and small tugs with a power rating of
less than 365 kW, and that the Clemna shipyard, which
had useful capacity of 3 000 grt, was completing work

on its last order, was in liquidation and would be deleted
from the Italian special register of shipyards.

V. ASSESSMENT

(10)

for

The notified aid is provided for by Article 1(2) of Law
No 488/92, supplemented by a number of decrees and
ministerial circulars laying down the detailed arrange-
ments
implementing it and approved by the
Commission on 19 May 1997 (2). Manufacturing firms
located in Objective 1, 2 or 5(b) areas or in areas eligible
for regional aid under the exemptions provided for by
Article 87(3)(a) or (c) of the EC Treaty may receive
assistance under the scheme. The eligible investments
and costs include in particular the construction of new
production plants.

(11) When it authorised the aid scheme, the Commission also
approved the map specifying the areas eligible for
regional aid in Italy and the intensities allowed. Since
Sardinia and Calabria have been classed as Objective 1
areas, aid may be granted there in respect of eligible
investments up to maximum intensity of 50 % nge. An
extra 15 % gge may be granted to SMEs.

(12) As the Commission stated in the letter authorising the
scheme which it sent to the Italian Government, the
scheme is subject to the Community rules and guidelines
applicable to specific sectors. Since the aid under exam-
ination is for investment in the construction of new
shipyards, it is subject to the sectoral rules in force at the
time the aid was notified, namely Directive 90/684/EEC
on aid to shipbuilding, whose application was extended
until 31 December 1998 by Regulation (EC) No 2600/
97. Article 1(a) of the Directive defines shipbuilding as
the building in the Community of metal-hulled sea-
going vessels, including ships of any kind of not less
than 100 grt and tugs of not less than 365 kW. Article
11(2)(b) of the Directive provides that ‘The following
shall be notified to the Commission in advance by the
Member States and authorised by the Commission
before they are put into effect: (...) any decision to apply
any general or regional aid scheme to the undertakings
covered by this Directive’.

(13)

that

The Oristano shipyard construction project fulfils the
conditions mentioned in recital 12 and must therefore
be examined in the light of Article 6(1) of Directive
‘Investment aid,
90/684/EEC, which stipulates
whether specific or non-specific, may not be granted for
the creation of new shipyards or for investment
in
existing yards unless it is linked to a restructuring plan
which does not involve any increase in the shipbuilding
capacity of the yard or unless it is directly linked to a
corresponding irreversible reduction in the capacity of
other yards in the same Member States over the same
period (...)’.

(1) OJ C 74, 10.3.1998, p. 9.

(2) OJ C 247, 21.7.1997, p. 3.

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(14)

The Italian Government stated that the Clemna shipyard
at La Spezia, which was entered on the Italian special
register of shipyards under number 17, was about to be
put into liquidation, definitively ceasing its shipbuilding
activities. That shipyard, which registered its last order in
1996, had a useful capacity of 3 000 grt but an effective
capacity of 2 000 grt. As the work programme for the
new shipyard shows an annual production equivalent to
2 000 grt, the new capacity installed at Oristano can be
regard as being directly offset by the closure of existing
capacity during the same period. The conditions laid
down in Directive 90/648/EEC are therefore met and the
investment aid can be deemed compatible with the
common market.

(15) However,

in order to check that the closure of the
capacity of the Clemna shipyard at La Spezia is definitive
and irreversible,
the
let
Commission have
information
regarding activities carried out on the site of the closed
yard; the information given in these reports may be
verified by the Commission.

the Italian authorities must

the necessary

all

(16) As far as the Belvedere Marittimo shipyard is concerned,
the new plan presented by the Italian authorities shows
that the firm to be set up does not fulfil the conditions
mentioned in recital 12 for the application of the provi-
sions concerned and that there is consequently no need
for the Commission to examine the project in the light
of Directive 90/684/EEC.

(17) However, given the similarity between the two invest-
ments concerned, the Italian authorities must present,
for a period of 10 years, an annual report on the activi-
ties of the new firm, giving details of its output. The
information given in these reports too may be verified
by the Commission.

VI. CONCLUSIONS

(18)

The Commission finds that the aid for the construction
of
the new shipyard at Oristano complies with the
provisions of Law No 488/92, as approved by the
Commission, and is compatible with Directive 90/
684/EEC;
the aid planned for the
the shipyard at Belvedere Marittimo
construction of

it also finds that

complies with the provisions of Law No 488/92 and is
not subject to prior authorisation by the Commission,

HAS ADOPTED THIS DECISION:

Article 1

The State aid amounting to ITL 53,4 billion which Italy plans
to implement under Law No 488/92 for the construction of a
new shipyard at Oristano is compatible with the common
market pursuant to Article 87(2)(a) of the Treaty and Directive
90/684/EEC.

Implementation of the aid is accordingly authorised provided
that the closure of the Clemna shipyard at La Spezia is defin-
itive and irreversible.

Article 2

The State aid amounting to ITL 54,4 billion which Italy plans
to implement for the construction of a new shipyard at Belve-
dere Marittimo is not subject to prior authorisation by the
Commission pursuant
to Directive 90/684/EEC, since the
vessels to be built there have a gross registered tonnage of less
than 100 t or, in the case of tugs, a power rating of less than
365 kW.

Article 3

The Italian Government shall transmit to the Commission each
year, for a period of 10 years, a report on:

(a) the activities carried out on the site of the Clemna shipyard

at La Spezia;

(b) the output of the Belvedere Marittimo shipyard.

This Decision is addressed to the Italian Republic.

Article 4

Done at Brussels, 16 November 1999.

For the Commission

Mario MONTI

Member of the Commission