2000/369/EC: Commission Decision of 20 July 1999 on aid granted by Italy to Sangalli Manfredonia Vetro (notified under document number C (1999) 2895) (Text with EEA relevance) (Only the Italian text is authentic)

• Articles: 5

Article 1

The sale of land by Agricoltura SpA to Sangalli Manfredonia Vetro Srl, the construction of common infrastructures in the investment area and the contribution that will be granted by Enisud SpA to Sangalli Manfredonia Vetro Srl for each employee of the ENI group who is recruited by Sangalli Manfredonia Vetro fall outside the scope of Article 87(1) of the Treaty.

Article 2

The aid granted by Italy to Sangalli Manfredonia Vetro Srl totalling ITL 135,630 billion complies with Law No 488 of 19 December 1992 establishing a regional aid scheme approved by the Commission.

Article 3

Italy shall not grant tax concessions or reductions in social security contributions to Sangalli Manfredonia Vetro Srl inasmuch as such measures are not part of a scheme approved by the Commission and constitute aid that is incompatible with the common market.

Article 4

Italy shall inform the Commission within two months of the date of notification of this Decision of the steps it has taken to comply herewith.

Article 5

This Decision is addressed to the Italian Republic.

Done at Brussels, 20 July 1999.

For the Commission

Karel Van Miert

Member of the Commission

(1) OJ C 92, 1.4.1999, p. 5.

(2) See footnote 1.

(3) OJ C 107, 30.4.1996, p. 4.

(4) OJ C 209, 10.7.1997, p. 3.

(5) Circolare Ministero dell'Industria No 234363 of 20 November 1997, as amended by Circolare No 9000043 of 5 February 1998.

(6) The Manfredonia contract was signed on 4 March 1998. The examination of the various projects for admissibility was completed on 15 July 1998. The projects accepted included Sangalli Vetro.

(7) On the basis of its decision of 21 May 1997 on State aid 27A/97, notified to Italy by letter No SG (97)D/4949 of 30 June 1997, the Commission authorised the scheme provided for in Law No 488 of 1992. By decision of 21 December 1998 concerning State aid 810/97, notified to Italy by letter of 9 February 1999, the Commission also approved the instruments implementing the Law, including the area contract instrument.

(8) OJ L 138, 21.5.1992, p. 24.

(9) OJ C 209, 10.7.1997, p. 3.

(10) Flat glass produced by the float process.

(11) According to the magazine Industrial minerals, December 1997, the flat-glass market in Europe is shared by the following firms: Pilkington 25 %, Glaverbel 18 %, Saint-Gobain 29 %, Guardian 12 %, PPG 8 %, Sisecam 6 % and Euroglas 2 %.

(12) This is the case for Pilkington plc, Saint-Gobain and Glaverbel. Websites (28.11.1998): http://www.pilkington.com, www.saint-gobain.com and www.glaverbel.com.

(13) Pilkington annual report 1996/97 and 1998, websites (28.11.1998): http://www.pilkington.com/finance; 1997 annual report, group performance www.glaverbel.com.

(14) DG III, Panorama of EU industry 97, Vol. I, pp. 9-8 to 9-14.

(15) Study published by Frost & Sullivan Market Research in 1997.

(16) Statement by Luc Willame, CEO of Glaverbel, to the General Shareholders' Meeting on 27 May 1998. Source: http://www.glaverbel.com (28.11.1998).

(17) http://www.saint-gobain.com (15.6.1999).

(18) Glaverbel 1998 annual report, "Management report", section headed "European glass consumption up". Source: http://www.glaverbel.com (14.6.1999).

(19) Point 22 of the decision of 7 August 1998 declaring a concentration to be compatible with the common market (Case IV/M.1230 - Glaverbel/PPG), OJ C 282, 11.9.1998, p. 2.

(20) According to estimates by the Assiciation of flat-glass producers, forecast demand in the EU will be 6390 million tonnes in 1999, 6737 million tonnes in 2000 and 7180 million tonnes in 2001.

(21) The eligible costs break down as follows: 5 % for studies (ITL 9,5 billion); 3 % for land (ITL 5,5 billion); 20 % for plant (ITL 43,3 billion); and 72 % for equipment (ITL 132,6 billion).

(22) See decision of 21 May 1997 on State aid 27A/97 which lists the intensities allowable in Article 88(3)(a) regions, (OJ C 242, 8.8.1997).

(23) See footnote 7.

(24) See footnote 6.

(25) OJ C 107, 7.4.1998, p. 7.

(26) See footnote 8.

(27) See, inter alia, the 1997/98 annual report sent to the Commission in connection with the supervision of the conversion activities (document registered as incoming mail on 18 November 1998 under A/38296).

(28) ENI shares have also been quoted on the stock exchange since 1995.

(29) See http://www.eni.it (28.6.1999).

(30) According to ENI estimates contained in the report, the total conversion costs will be ITL 100 billion, and the activity is to continue until the end of 2000.

(31) OJ C 188, 17.6.1998, p. 8.

(32) OJ L 265, 8.11.1995, p. 23.

(33) The decision provides for a different system for Abruzzi.

(34) OJ C 334, 12.12.1995, p. 4. The granting of such aid is subject to the following conditions:

- the workers recruited must be unemployed,

- the recruiting firms must not have dismissed staff in the last 12 months,

- recruitment must involve the creation of new jobs, measured against the number of staff employed by the firm in the 12 months preceding the recruitment,

- contracts must be open-ended or of sufficient length to guarantee some job stability (employment must be guaranteed for at least 12 months following payment of the aid). In the event of combination with other aid, the total amount of the aid may not exceed the higher ceiling in the schemes concerned.