2002/185/EC: Commission Decision of 12 June 2001 on State aid implemented by Germany for Technische Glaswerke Ilmenau GmbH, Germany (Text with EEA relevance) (notified under document number C(2001) 1549)

• Celex Number: 32002D0185
• Coming into Force: 05 March 2002
• End of Effective Date: 31 December 9999
• ELI: http://data.europa.eu/eli/dec/2002/185/oj
• Published date: 05 March 2002
• Date: 12 June 2001
• Official Gazette Publication: Gazzetta ufficiale delle Comunità europee, L 62, 05 marzo 2002,Diario Oficial de las Comunidades Europeas, L 62, 05 de marzo de 2002,Journal officiel des Communautés européennes, L 62, 05 mars 2002

|

32002D0185

2002/185/EC: Commission Decision of 12 June 2001 on State aid implemented by Germany for Technische Glaswerke Ilmenau GmbH, Germany (Text with EEA relevance) (notified under document number C(2001) 1549)

Official Journal L 062 , 05/03/2002 P. 0030 - 0043

Commission Decision

of 12 June 2001

on State aid implemented by Germany for Technische Glaswerke Ilmenau GmbH, Germany

(notified under document number C(2001) 1549)

(Only the German text is authentic)

(Text with EEA relevance)

(2002/185/EC)

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

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

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

Having called on interested parties to submit their comments(1) pursuant to Article 88(2) of the EC Treaty and Article 6(1) of Council Regulation (EC) No 659/1999 of 22 March 1999 laying down detailed rules for the application of Article 93 of the EC Treaty(2) and having regard to their comments,

Whereas:

I. PROCEDURE

(1) By letter dated 1 December 1998, registered on 4 December 1998, Germany notified restructuring measures in favour of Technische Glaswerke Ilmenau GmbH ("TGI") to the Commission in accordance with Article 88(3) of the EC Treaty. As aid had already been paid out, the measures were registered under aid NN 147/98. The Commission requested additional information from Germany by letters dated 23 December 1998 and 29 March 1999, which were answered by letters dated 18 February 1999, registered on 19 February 1999, and 31 May 1999, registered on 1 June 1999. By letters dated 15 September 1999, registered on 20 September 1999, 4 October 1999, registered on 5 October 1999, and 29 October 1999, registered on 3 November 1999, Germany submitted further information.

(2) By letter dated 4 April 2000, the Commission informed Germany that it had decided to initiate the procedure laid down in Article 88(2) of the EC Treaty in respect of the aid. It also issued an information order.

(3) The Commission decision to initiate the procedure was published in the Official Journal of the European Communities(3). The Commission invited interested parties to submit their comments on the aid measure.

(4) By letter dated 3 July 2000, registered on 7 July 2000, Germany responded to the initiation of the procedure and the information order. A meeting with representatives of the German authorities was held on 7 November 2000. By letter dated 27 February 2001, registered on 1 March 2001, Germany submitted further information.

(5) The Commission received comments from two interested parties. It forwarded them to Germany, which was given the opportunity to react; its observations were received by letter dated 13 December 2000, registered on 15 December 2000.

II. DETAILED DESCRIPTION

2.1. The aid recipient

(6) TGI is located in Ilmenau, Thuringia, an assisted area under Article 87(3)(a) of the EC Treaty. It was set up in 1994 by two private individuals, Mr and Mrs Geiß, with the aim of taking over four of the 12 production lines of the former Ilmenauer Glaswerke GmbH ("IGW"), a company whose sole owner, the Treuhandanstalt ("THA"), had decided to liquidate in 1994. The eight remaining production lines were shut down and dismantled.

(7) The company is active in the field of technical glassware, laboratory glass, glass for domestic use, sight glass, tubes and rods. In 1997, TGI had 226 employees and a turnover of DEM 28048000.

(8) The main shareholder (99 % of the shares) and managing director of the company, Mr Geiß, was also the sole shareholder and managing director of two other companies active in the same relevant market as TGI:

- Laborbedarf Stralsund GmbH ("LS"), located in Güstrow, Mecklenburg-Western Pomerania, and

- Paul F. Schröder & Co. Technische Glaswaren GmbH & Co KG ("PFS"), located in Ellerau, near Hamburg.

(9) Although LS had only two employees, PFS had 74 employees and a turnover of DEM 9711000 in 1997. LS ceased trading in 1999. PFS filed for bankruptcy in January 2000.

2.2. Financial measures in the past

(10) The sale of the four production lines ("tanks") of IGW to TGI was done by means of two asset deals.

2.2.1. Asset deal 1 (contract of 26 September 1994)

(11) In September 1994 the first three production lines were sold to TGI, after negotiations with other potential investors had failed. The sale was finally approved by the THA, the sole shareholder in IGW, in December 1994.

(12) The purchase price amounted to a total of DEM 5800000 and was to be paid in three instalments by the end of 1999. Payment was secured by a mortgage of DEM 4000000 and a bank guarantee of DEM 1800000. The latter was covered, in turn, by counterguarantees and time deposits.

(13) In the context of this asset deal, Germany granted the following measures worth a total of DEM 58500000:

>TABLE>

(14) Apart from investment loans from the Kreditanstalt für Wiederaufbau ("KfW") amounting to DEM 17100000, and investment grants and investment allowances amounting to DEM 7900000, TGI received grants from the Bundesanstalt für vereinigungsbedingte Sonderaufgaben ("BvS") for the restructuring of a pilot plant amounting to DEM 16500000 and THA/BvS grants for loss compensation for the years 1994 to 1997 amounting to DEM 17000000.

2.2.2. Asset deal 2 (contract of 11 December 1995)

(15) In December 1995 the fourth production line was sold to TGI as no other investor could be found. The purchase price amounted to DEM 50000.

(16) In the context of asset deal 2 Germany granted the following measures worth a total of DEM 8925000:

>TABLE>

(17) Apart from investment allowances amounting to DEM 425000 and a loan from the Thüringer Aufbaubank ("TAB") amounting to DEM 2000000, TGI received BvS grants for restructuring the fourth production line amounting to DEM 4000000, BvS investment grants amounting to DEM 1000000 and THA/BvS grants for loss compensation for the years 1996 to 1998 amounting to DEM 1500000.

(18) The effectiveness of asset deal 2 was dependent on the provision of a bank guarantee by TGI. As this was not forthcoming, asset deal 2 was provisionally ineffective until February 1998.

2.3. The restructuring plan and financial measures

(19) According to Germany, TGI ran into difficulties because the start-up of the investment project had to be postponed for half a year due to the fact that the THA only approved the terms of asset deal 1 in December 1994.

(20) TGI could therefore only start the investment project in April 1995, whereas it had planned to start in the last quarter of 1994. As a consequence, the rest of the investment project had to be postponed.

(21) Moreover, TGI could not provide in time evidence of the guarantee, which was a requirement for the effectiveness of asset deal 2. Accordingly, the BvS did not make available grants amounting to DEM 4000000 for the purpose of restructuring the fourth production line, so that necessary investments could not be carried out. As TGI had also suffered since its inception from a continuous lack of liquidity, the whole project was in the balance and by 1997 the company's liquid resources were almost exhausted.

(22) In order to restore viability, TGI was obliged to solve the abovementioned liquidity problem and to build up capital and reserves. A concerted action plan was adopted by the BvS, the Land of Thuringia and the private investor in February 1998.

(23) Germany submitted the following restructuring plan with the notification. The time frame envisaged was 1998 to 2000:

>TABLE>

(24) The purchase price for the first three production lines was still outstanding. In addition, DEM 4000000 was needed to restructure the fourth production line and DEM 6000000 for related investments. DEM 4500000 was earmarked for projects to improve productivity and for a general overhaul of the production lines. Remaining liabilities to suppliers from 1997 and rent payments originally due in 1997 required an amount of DEM 1925000.

(25) The restructuring costs listed above were to be financed as follows:

>TABLE>

(26) The BvS agreed to waive DEM 4000000 of the initial purchase price. In addition, the bank guarantee amounting to DEM 1800000 under asset deal 1 was converted into a mortgage debt in order to improve the company's liquidity.

(27) The BvS finally approved asset deal 2 without insisting on the provision of a bank guarantee, a precondition that had made the contract provisionally ineffective until February 1998. The grants for restructuring the fourth production line amounting to DEM 4000000 could therefore finally be paid out. Moreover, the company received THA/BvS grants for loss compensation amounting to DEM 1325000.

(28) Investment allowances amounting to DEM 475000 were granted to the company in the context of the restructuring.

(29) The company received a loan of DEM 2000000 from the TAB under the Thuringia Consolidation Fund as had been agreed in asset deal 2.

(30) The restructuring plan provided that DEM 4175000 of the costs had to be financed out of the company's own resources in the form of cash flow. No details were given on whether this cash flow had already been generated or when it was to be generated. A private investor, who still had to be found, should contribute DEM 3850000 to the restructuring.

(31) Moreover, a waiver of the staff's Christmas bonus amounting to DEM 650000 had been agreed.

(32) The release of a guarantee concerning job obligations was supposed to make DEM 250000 available for the restructuring. No further information was given on this guarantee.

(33) According to the...