2000/393/EC: Commission Decision of 20 July 1999 on State aid to be granted by Germany to CBW Chemie GmbH, Bitterfeld-Wolfen (notified under document number C(1999) 3272) (Text with EEA relevance) (Only the German text is authentic)

• Articles: 3

Article 1

1. The measures amounting to DEM 1,28 million which Germany intends to take in order to dispose of the burdens of the firm Chemie GmbH Bitterfeld-Wolfen (CBW) inherited from before 1 July 1990 do not constitute Sate aid within the meaning of Article 87(1) of the EC Treaty.

2. The State aid totalling DEM 57,34 million which Germany intends to grant to CBW in the form of an investment grant of DEM 46,1 million and the payment of the costs of demolition works and infrastructure totalling DEM 11,24 million is compatible with the common market.

3. The State aid of DEM 9 million which Germany intends to grant to CBW in the form of a payment to offset negative cash flow is incompatible with the common market. This aid may therefore not be granted.

Article 2

Germany shall inform the Commission within two months of the notification of this decision of the measures it has taken to comply with it.

Article 3

This Decision is addressed to the Federal Republic of Germany.

Done at Brussels, 20 July 1999.

For the Commission

Mario Monti

Member of the Commission

(1) OJ C 383, 17.12.1997, p. 4.

(2) OJ C 383, 17.12.1997, p. 4.

(3) This information was supplied by the BvS at a meeting on 12 November 1998.

(4) Business secret.

(5) See 23nd report on competition policy (1993), point 402 et seq.

(6) This was made up of four partners; Buch Umwelttechnik GmbH, Manifattura Chemica Italiana, Mr H. Schmidt and a fourth unknown firm.

(7) An independent body set up by the competent ministry to evaluate the plans submitted. The BvS is not bound by the Committee's decisions but will normally follow them.

(8) Classification as an SME is important because it is associated with a certain ceiling below which investment costs can be granted in the form of regional aid under the joint Federal Government/Länder scheme for improving regional economic structures.

(9) A significant growth factor is the global success of firms which manufacture generic products for the pharmaceutical industry and agriculture, two sectors in which the main producers are increasingly buying their active substances from outside.

(10) See footnote 3.

(11) Commission decisions on the activities of the THA in Cases NN 108/91 (letter of 26 September 1991, SG(91) D/17825), E 15/92 (letter of 8 December 1992, SG(92) D/17613) and N 768/94 (letter of 1 November 1995, SG(95) D/1062)..

(12) OJ C 368, 23.12.1994, p. 12.

(13) See aid NN 108/91 (letter of 26 September 1991, SG(91) D/17825).

(14) The original plan forecast negative cash flow for 1997 and 1998 that was to be offset by the abovementioned DEM 9 million payment.

(15) CBW is made up of six divisions: Anilin, Azo-Ost, Camposan, nitro-chloro-benzole distillation, pharmaceuticals and the pilot plant.

(16) This is made up of the purchase price of DEM 1 million, the taking-over of the hive-off vehicle's liabilities of DEM 8,857 million, a DEM 3 million capital increase and the granting of an investment and operating loan totalling DEM 10 million. The loans are included in the investor's contribution because they are no longer guaranteed by the Land.

(17) According to information supplied by the BvS at talks on 12 November 1998.

(18) It should be pointed out that the privatisation contract provides for the reimbursement of the cash-flow offset up to an amount of DEM 6,4 million if there is no negative cash flow.

(19) Commission decision on the activities of the Treuhandanstalt in Case NN 108/91 (letter of 26 September 1991, SG(91) D/17825).