EXECUTION OF ORDERS IS ANALOGOUS TO A JOINT-SELLING AGREEMENT AND THE COORDINATION OF RAW MATERIALS PURCHASES IS ANALOGOUS IN EFFECT TO JOINT-BUYING .
UNDER ARTICLE 65 ( 2 ) OF THE TREATY THE AGREEMENTS MAY BE AUTHORIZED IF THEY MAKE FOR A SUBSTANTIAL IMPROVEMENT IN PRODUCTION OR DISTRIBUTION AND ARE ESSENTIAL IN ORDER TO ACHIEVE THOSE RESULTS WITHOUT BEING MORE RESTRICTIVE THAN IS NECESSARY FOR THAT PURPOSE ; SUCH AGREEMENTS MUST NOT BE LIABLE TO GIVE THE UNDERTAKINGS CONCERNED THE POWER TO DETERMINE THE PRICES , OR TO CONTROL OR RESTRICT THE PRODUCTION OR MARKETING , OF A SUBSTANTIAL PART OF THE PRODUCTS IN QUESTION WITHIN THE COMMON MARKET , OR TO SHIELD THEM AGAINST EFFECTIVE COMPETITION FROM OTHER UNDERTAKINGS WITHIN THE COMMON MARKET .
THE AGREEMENTS SUBMITTED TO THE COMMISSION ENABLE THE FOLLOWING CONCLUSIONS TO BE REACHED AS REGARDS THE SUBSTANTIAL IMPROVEMENT IN PRODUCTION OR DISTRIBUTION :
THE PRODUCTION SCHEDULES FOR FLAT PRODUCTS OF BOEL , CLABECQ AND CHARLEROI OVERLAP TO A CERTAIN EXTENT . THERE ARE WIDE DIFFERENCES IN THE AGE , CAPACITY AND PRODUCTIVITY OF THE VARIOUS UNDERTAKINGS' PLANTS .
A SPECIALIZATION OF PRODUCTION AS BETWEEN THESE UNDERTAKINGS BY THE EXPEDIENT OF EXECUTING ORDERS USING THE PLANTS WHICH ARE BEST EQUIPPED AND HAVE THE GREATEST POTENTIAL FOR PRODUCING AT THE MOST ECONOMIC COST WILL RESULT IN AN INCREASE IN THE RATE OF UTILIZATION OF THE TECHNICAL INSTALLATIONS AND WILL IMPROVE PRODUCTIVITY .
THE AGREEMENT BY THE UNDERTAKINGS TO RENOUNCE CERTAIN PRODUCTION POTENTIAL AND THE JOINT UTILIZATION OF SOME OR ALL OF THEIR PLANT IS INTENDED , FIRST , TO MAINTAIN CURRENT SPECIALIZATION AND , SECONDLY , TO PREVENT PARALLEL INVESTMENT WHICH IS UNDESIRABLE FROM AN ECONOMIC STANDPOINT .
THE FACT THAT THE THREE MEMBERS UNDERTAKE TO CONSULT EACH OTHER PRIOR TO ALL INVESTMENT DECISIONS RELATING TO THE PRODUCT RANGE IN WHICH THEY COMPETE IS LARGELY UNOBJECTIONABLE IN THAT THIS IS SUBSIDIARY TO THE SPECIALIZATION AGREEMENTS AND BECAUSE THERE IS OVER-CAPACITY IN THIS SECTOR .
IN PROPOSING TO EACH OTHER THE RECIPROCAL EXECUTION OF ORDERS WHICH , FOR TECHNICAL OR ECONOMIC REASONS , CAN BE EXECUTED MORE ECONOMICALLY AT OTHER MEMBERS' PLANTS , THE UNDERTAKINGS CONCERNED WISH TO OVERCOME TOGETHER THE DIFFICULTIES ARISING FROM THE CURRENT SITUATION ON THE STEEL MARKET , TO OFFER MUTUAL ASSISTANCE IN ORDER BETTER TO WITHSTAND COMPETITION FROM MAJOR PRODUCERS AND TO MOVE TOWARDS BETTER USE OF THEIR PRODUCTION CAPACITY .
COORDINATION OF THEIR RAW MATERIAL SUPPLIES BY BULKING ORDERS ENABLES THE UNDERTAKINGS CONCERNED TO REDUCE THEIR EXPENDITURE IN RESPECT OF SUCH PURCHASES , PARTICULARLY AS REGARDS PURCHASE PRICES , TRANSPORT AND STORAGE COSTS .
IT IS THEREFORE JUSTIFIABLE TO CONCLUDE THAT THE AGREEMENTS SETTING UP " POLE DES INDEPENDANTS " CAN MAKE FOR A SUBSTANTIAL IMPROVEMENT IN THE PRODUCTION AND DISTRIBUTION OF THE PRODUCTS IN QUESTION .
THE RESULTS EXPECTED DERIVE MAINLY FROM CHANNELLING MANUFACTURE OF THE PRODUCTS CONCERNED TOWARDS THE PLANTS WHICH ARE BEST EQUIPPED AND HAVE THE GREATEST POTENTIAL FOR PRODUCING AT THE LOWEST COST AND FROM BULKING ORDERS FOR