Official Journal of the European Communities No C 250/3

15 . 8 . 97 I EN I Official Journal of the European Communities No C 250/3

STATE AID C 35/97 (ex NN 129/96) Germany

(97/C 250/03 ) (Text with EEA relevance)

(Articles 92 to 94 of the Treaty establishing the European Community)

Commission notice pursuant to Article 93 (2) of the EC Treaty to other Member States and interested parties concerning aid the German Government intends to grant to Triptis Porzellan GmbH, Thuringia

The Commission has sent the German Government the an investor, Mr Marquart . The purchase contract following letter, informing them that they have decided obliged the investor to keep 280 employees up to to initiate Article 93 (2 ) proceedings . September 1996 and invest up to an amount of DM 18 million up to December 1997 . At present, the enterprise employs 326 workers . The balance sheet value amounted 'I. Procedural Aspects to DM 42,703 million (ECU 22 million) at the end of 1995 . By letter dated 5 November 1996 , registered the same day, your Government notified the Commission of the Under the privatization contract the following aid above mentioned aid . The annexes were transmitted by measures for Triptis were agreed : letter dated 12 November, registered on 13 November . (in DM)

1 . redemption of a liquidity loan, The case was discussed at a meeting with your auth guaranteed by the THA , including orities on 7 January 1997 . Your Government transmitted interest 19 260 000 further information by letter dated 29 January 1997 , registered on 30 January 1997 . As the aid had already 2 . redemption of a loan, secured by a land been made available before it was notified, Article 93 ( 3 ) charge , including interest 2 000 000 of the EC Treaty was not complied with . The aid was therefore registered as an NN case . 3 . debt relief of an investment loan including interest 795 000

4 . waiver of repayment of shareholder's II . Facts loan 4 459 000

Triptis Porzellan was founded in 1891 under the name 5 . granting of an interest-free loan, settled with loss cover 8 200 000 Unger & Gretschel . After the Second World War the factory was administrated by Soviets Russia . Today's Total 34 714 000 factory was rebuilt from 1959-1962 .

In the former GDR the state-owned VEB Porzellanwerk It should be emphasized that measures ( 1 ) to (4 ) refer to Triptis was part of the fine ceramics conglomerate Kahla liabilities with date of origin before privatization . Only (Kombinat Feinkeramik Kahla). It had no trade mark of the granting of the interest-free loan, amounting to DM its own and no proper distribution system . 8,2 million, which was settled with loss cover afterwards, constituted "liquidity" aid for the privatized enterprise and the investor . On 1 July 1990 when the THA (Treuhandanstalt) took over VEB Porzellanwerk Triptis, there were about 900 employees . The capacity amounted to 6 000 tonnes All measures are calculated with an aid intensity of gross . In February 1991 the factory was renamed Triptis 100 % . As the enterprise was in difficulties, the measures Porzellan GmbH . fell under the Treuhand regime and remained within its thresholds . In September 1993 the enterprise was privatized . The Commission is not certain on the procedure followed for the privatization . At this time the capacity still amounted The enterprise produces and develops tableware and also to 6 000 tonnes gross . The shares were sold to makes innovative use of porcelain for collection articles, Mr Sarsted , Triptis GmbH manager since 1992 and to presents and leisure time articles . No C 250/ 4 MEN"! Official Journal of the European Communities 15 . 8 . 97

Triptis Porzellan GmbH is situated in the new German Out of this loan, on 19 June 1996 DM 4,730 million was Land of Thuringia, an assisted area within the meaning awarded for loss cover in 1995 , on 23 September 1996 of Article 92 (3 ) (a) of the EC Treaty ( 15,9% unem DM 2,670 million was awarded for loss cover up to the ployment rate in comparison to the 10,8 % average third quarter 1996 and on 2 July 1996 DM 0,6 million unemployment rate of the EU). The secondary labour was awarded for a liquidity loan . The amount was only market (provisional measures, further vocational training awarded after certified accountants had submitted a etc.) amounts to 10,5 % . certificate confirming that it was necessary .

Triptis is still regarded as the principal employer in East Thuringia , in particular because the village Triptis itself Thanks to these provisional measures Triptis has had the has only 5 000 inhabitants . time to obtain financial commitments from various interested parties . In early 1995 the management realized that the restruc turing of the enterprise could not be carried out successfully with its own financial resources . Therefore On this basis in 1996 the company was able to organize the Bundesanstalt fiir vereinigungsbedingte Sonde raufgaben (BvS) was asked for financial support. The a concerted action by all parties involved which aimed at BvS asked for the transmission of a restructuring plan, in supporting the restructuring process and avoiding the order to assess the situation of the enterprise and its company's bankruptcy. The bank of Hessen (Hessische Landesbank) is waiving repayment of a loan of DM 10 development potential . In January 1996 Triptis Porzellan million, the employees are waiving parts of remuneration GmbH presented its restructuring plan to the BvS . and fringe benefits amounting to DM 2,4 million for the years 1996-1998 and the shareholders Mr Saarstedt and In 1996 the enterprise had a liquidity crisis for the Mr Marquart are bringing in new cash amounting to following reasons : DM 100 000 each . The BvS wishes to contribute to the restructuring process by waiving repayment of the DM 8 — the enterprise was privatized only at the end of 1993 million loan . because of difficulties in finding an investor. From 1990-1993 no restructuring measures had taken place, and a lack of any overall concept made reasonable planning impossible, The restructuring concept was approved on 12 March 1996 and 20 August 1996 by the BvS's Leitungsausscbuft, — the type of privatization (management buy-out) an independent committee of experts . (In March the typically results in a company with a relatively weak provision of the loan was approved, in September the capital base, waiver of this loan) The committee considered the devel opment of Triptis GmbH positive . — due to the late privatization new investment was made later than expected . Therefore expected cost reduction took place too late and the enterprise made higher losses than expected . The enterprise had to The plan was based on the following elements : borrow further funds, — Triptis was part of the fine ceramics conglomerate — investment in improved production facilities without Kahla . It had no trade mark of its own , and no increasing capacity. The privatization concept proper distribution system . Because of the disap estimated that investment amounting to DM 18 pearance of the Eastern markets Tripits had to million would be required to make the company conquer new markets . After privatization the successful . In the planning for 1994/ 1995 the need enterprise not only had to be rebuilt but also had to for investment was accumulated to DM 19,3 million develop a selling/distribution system in new markets . up to 1998 . Since the privatization more than DM 17 Therefore immediately after privatization the million has been invested, mainly in a whiteware enterprise made a difficult operational start and plant. All the investments take environmental aspects acquired high liabilities, into account, — most of the losses Triptis made are due to rising interest charges . In 1995 all liabilities amounted to — financial restructuring, in particular with a view to DM 30,915 million, the liabilities towards credit discharge of liabilities amounting to more than institutions amounted to DM 26,636 million . The DM 30 million in 1995, situation became critical and the banks together with the BvS were requested to approve a restructuring plan . — development of operating costs . Material costs are to rise from DM 9 744 000 in 1995, DM 9 292 000 in In order to support the restructuring process the BvS 1996 and DM 10 775 000 in 1997 to DM 12 191 000 first provided a bridging loan of DM 8 million . The in 1998 and personnel costs from DM 14 313 000 in interest amounts to 4,4% ; the duration is up to 31 1995 , DM 12 940 000 in 1996, DM 13 805 000 in December 1998 . 1997 to DM 15 044 000 in 1998 , 15 . 8 . 97 EN Official Journal of the European Communities No C 250/ 5

— annual turnover already increased from DM Since this aid was not based on approved aid schemes , it 15 438 000 in 1992 to DM 20 222 000 in 1995 and was notifiable individually pursuant to Article 93 ( 3) should amount to DM 36 380 000 in 1998 . The before its implementation . The German authorities did turnover should come from a higher quantity of sales not comply with this requirement since the loan was and from obtaining better prices . Price reduction is awarded without previous approval by the Commission . not used as a major commercial strategy . On the Thus , the aid is formally illegal . This loan will now be contrary, the company is continuing to focus on the waived . high-quality segments of the market . Market devel opment outside of the EU is also a major devel opment, The notified waiver of DM 8 million proposed by the BvS falls within the scope of Article 92 ( 1 ) of the EC Treaty and Article 61 ( 1 ) of the EEA Agreement because — operational improvement in the area of increased it constitutes aid , granted by public authorities , which efficiency in the purchasing process , human-resource distorts or threatens to distort competition between motivation and information processing , Member States by favouring certain undertakings or the production of certain goods .

— investment in marketing and distribution aimed at positioning in the upper A segment . In 1996 , Triptis produces and sells household porcelain in the DM 710 000 were spent on developing new forms upper A segment . In 1995 the relevant market (A and DM 500 000 on marketing measures . A new logo segment) was in West Germany about DM 341 million was developed . The company frequently participates and in East Germany about DM 98 million . In 1995 in fairs , Triptis had a market share of 3,6 % in Germany .

There is trade in the ceramic/porcelain sector between — Triptis Porzellan GmbH has succeeded in building Germany and the other Member States . In 1993 German up a distribution system and defining its own trade imports of table and ornamentalware ceramics amounted mark . The export share should increase from less to ECU 357,02 million and exports amounted to ECU than 20 % in 1995 to 38 % in 1998 . The enterprise 403,97 million . already exports to Sweden , Italy, France , Spain , Austria and Switzerland . Since 1995 Triptis Porzellan GmbH has acquired trading partners in Turkey, Egypt and Taiwan . For 1998 an expansion to the The EU ceramic goods sector has total production United States is planned , approaching ECU 17 billion and employs around 210 000 people involving over 2 500 companies . European production grew by an average 0,9 % p.a . and consumption by 1,18 % over the 1984-1993 period . Any — annual losses have already improved from losses aid to Triptis Porzellan GmbH may therefore influence amounting to DM 12 523 000 in 1992 and its position on the market vis-a-vis its competitors in the DM 13 375 000 in 1993 to DM 4 730 000 in 1995 . EU . For 1997 planned losses only amount to DM 79 000 and in 1998 Triptis Porzellan GmbH is expected to have a profit of DM 1 242 000 . If the enterprise fully Since this aid is not based on approved aid schemes , it implements the restructuring plan , turn-around and was notifiable individually . Germany has complied with positive cash flow are expected to be reached in this requirement under Article 93 (3) of the EC Treaty . 1998 / 1999 .

(a) It is questionable whether the waiver of DM 10 million by the Hessische Landesbank constitutes aid III . Assessment within the meaning of Article 92 ( 1 ) of the EC Treaty . The Hessische Landesbank (HeLaBa) is state-owned . According to German law it has to act like a market The amount of DM 8 million granted to Triptis by the investor, consequently to provide funds only on market BvS in the form of a loan at an interest rate of 4,4 % and bank conditions . It is not task of the HeLaBa to undoubtfully constituted aid within the meaning of support companies . The HeLaBa is subject to the KWG Article 92 ( 1 ) of the EC Treaty and Article 61 ( 1 ) of the (German law concerning the surveillance of private EEA Agreement . No private bank or investor would credit institutions). Even if it is a public institution , it is have awarded a loan at an interest rate below market legally obliged to act like a private investor. conditions . In 1996 the market interest rate amounted to 7,33 % . The loan was awarded at an interest rate of 4,4 % . Furthermore if the company was in difficulty, The Hessische Landesbank (HeLaBa) waived 40 °/o of then the entire loan has to be regarded as aid . the debt to avoid bankruptcy and to secure payment of No C 250/6 EN Official Journal of the European Communities 15 . 8 . 97

the remaining 60 % . HeLaBa is the company's "house of realistic assumptions as to its future operating bank" and only bank and therefore its behaviour cannot conditions . Restructuring aid must be linked to a viable be compared with that of another bank in checking that restructuring programme . The improvement in viability it really acted as a private investor . must mainly result from internal measures contained in the restructuring plan . The question of whether it really acted as a private investor should be further clarified . The German authorities transmitted the restructuring programme to the Commission . (b) The Commission now has to assess whether the aid is incompatible in substance , in particular whether it does or does not comply with the derogations as set out The restructuring started in 1993 with the privatization in Article 92 (2) and ( 3 ) of the EC Treaty . In principle of the enterprise . At that time the company already had a the Commission would have to examine the compatibility restructuring concept, the last version of which was of the non-notified loan at an interest of about 3 % approved in 1996 . The aid the German government below the market interest rate , as well as the notified offered within the concerted action with the partners grant. Considering that the amount of DM 8 million is aims to complete this restructuring process . All figures awarded only once and that the loan is going to be concerning the enterprise indicate a positive devel converted into a grant by the waiver, the Commission opment, and this is also the view of the independent has to assess only the compatibility of the grant committee of experts which had to examine the amounting to DM 8 million plus the saved interest, plus enterprise and its restructuring plan for the BvS . the waiver of the interest . — the company is investing in improved production The compatibility of the aid can be analysed in the light facilities For the whole restructuring period of the derogation provided for by Article 93 (3) (c), "aid investment amounting to DM 19,4 million is planned . to facilitate the development of certain economic Since the privatization more than DM 17 million activities , where such aid does not affect trading thereof have been spent, mainly in a whiteware plant . conditions to an extent contrary to the common interest" This investment will lead to efficient production in connection with the Community guidelines on State structures , aid for rescuing and restructuring firms in difficulty (OJ No C 368 , 23 . 12 . 1994). Such aid may be considered — the financial restructuring is in particular concen compatible with the common market . Since Tripits trated on the discharge of liabilities amounting to Porzellan GmbH was loss-making in the past, it may more than DM 30 million in 1995 . After having certainly be regarded as a firm in difficulties within the discharged those liabilities , the financial development meaning of the guidelines . of Tripits Porzellan GmbH is considered to be positive , The aid given by the BvS to Triptis is given in order to accompany and to complete its restructuring . — Material costs rise from DM 9 744 000 in 1995 , DM 9 292 000 in 1996 and DM 10 775 000 in 1997 Aid for restructuring can be accepted under strict to DM 12 191 000 in 1998 . This increase is due to conditions . the positioning of the enterprise's products in the upper A segment which requires the use of high quality materials . (a) The restructuring must restore the long-term viability of the company in question ; — Personnel costs rise from DM 14 313 000 in 1995 , (b) undue distortions of competition should be avoided ; DM 12 940 000 and DM 13 805 000 in 1997 to DM 15 044 000 in 1998 . The decrease in costs in 1996 and 1997 is due to the reduction of employees (c) the amount and intensity of aid must be restricted to from 326 at the beginning of 1996 to 290 at the end a strict minimum and the costs to which the aid of 1996 , and the employees waiving parts of their relates must not exceed the benefit therefrom ; remuneration ( altogether DM 2,4 million). It can be concluded that each employee waives about DM (d) such aid measures are strictly conditional on the 8 275 . In 1998 the company will restart paying full implementation of a sound restructuring plan ; wages . Therefore personnel costs are going to increase again .

With regard to (a): — Annual turnover increased from DM 15 438 000 in 1992 to DM 20 222 000 in 1995 . A gradual increase The long-term viability and health of Triptis must be linked to an improved quality and higher prices will restored within a reasonable time-scale and on the basis generate turnover amounting to DM 36 380 000 in 15 . 8 . 97 I EN I Official Journal of the European Communities No C 250/ 7

1998 . This increase will be supported by an improved The implementation of the restructuring programme distribution system (see below). submitted seems likely to put the company into a position of covering its costs and generating a return on capital in 1998 . The company will not require further — With investment in the development and marketing injections of State aid and will be capable of competing of fashionable products , as well as the creation of a in the market place on its own merits . new logo , the enterprise has already started to produce in accordance with market demands . Non-profitable products in the product range have With regard to (b): been dropped .

— Triptis Porzellan GmbH has succeeded in building A further condition is that measures are taken to offset up a distribution system and defining its own trade adverse effects on competitors . Otherwise aid would be mark . As regards distribution in Germany, Tripits has contrary to the common interest and ineligible for the various contracts with several wholesale firms as well exemption pursuant to Article 92 ( 3 ) (c). as to retail traders

It first has to be stated the procelain sector is not a — The export share of about 20 % in 1995 was already remarkable . It shows that the enterprise , which lost sensitive sector for which specific Community frameworks or guidelines apply . all its export markets in the Eastern countries , was capable of installing a new distribution system . The export share should increase to 38 % in 1998 . The enterprise already exports to Sweden , Italy, France , The tableware and ornamental sector in the EU contains Spain , Austria and Switzerland . Since 1995 Tripits a handful of large companies amongst a myriad of small Porzellan GmbH has acquired trading partners in ones . Five companies account for around 40 % of total Turkey , Egypt and Taiwan . These contracts and EU output . contacts provide a solid basis for Triptis export prospects . For 1998 , expansion to the United States is planned . EU production and consumption of ceramic goods showed steady growth between 1984 and 1991 , followed — Annual losses have already improved from losses by declines in 1992 and 1993 . A recovery in production amounting to DM 12 523 000 in 1992 , and has been anticipated since 1994 . However, there is over DM 13 375 000 in 1993 to DM 4 730 000 in 1995 . capacity in the ceramics tableware sector in the EU . This For 1997 planned losses amount to DM 79 000 and is aggravated by very strong competition from imports in 1998 Triptis porzellan GmbH is expected to have from south-east Asia , and from countries in central and a profit of DM 1 242 000 . If the enterprise fully eastern Europe , particularly the Czech Republic and implements the restructuring plan , turn-around and Hungary . This has exposed the high production costs positive cash flow are expected to be reached in and the overcapacity which exists in much of the EU 1998 / 1999 . The company has already improved its tableware sector . The impact has been greatest at the annual result by about DM 8 million (more than lower quality end of the market, causing some EU 60 % ) in the period from 1992 to 1995 . A further producers to concentrate on more upmarket products , improvement of approximately DM 6 million in the others to take major cost-cutting measures to remain annual results by 1998 seems to be a realistic competitive , and others to get out of the market . The assumption . process of restructuring still has to go a long way . It seems likely that further amalgamation , allied with investment in new equipment will be necessary to improve competitiveness in parts of the industry . Considering the positive development of the company since 1992 , its further development and its final profit ability seem credible . From the data the German Government has provided , it seems that the present Consumption of ceramic goods is expected to resume difficulties of the enterprise are due to high liabilities and former levels of growth as EU industry in general moves high interest charges . out of recession . Those companies that have already modernized and restructured can be expected to perform well during the latter part of the 1990s . ( Source : Panorama of EU Industry 1995 /96) In this context, it also has to be emphasized that the improvement in Triptis Porzellan gmbH's viability prospects is based on internal measures contained in the restructuring plan and not on external factors such as In view of the overcapacity in the procelain sector, it is price and demand increases over which the company has open to doubt whether the aid measures for Triptis do no great influence . not unduly distort competition and whether the payment No C 250/ 8 EN Official Journal of the European Communities 15 . 8 . 97 may not harm competitors which do not receive aid and With regard to (c): have to adapt to the structural changes by their own financial resources . These should therefore have the opportunity to express their opinion to the Commission . The amount and intensity of the aid must be limited to the strict minimum needed to enable restructuring to be In 1993 at the time of privatization the enterprise had a undertaken and must be related to the benefits capacity of 6 000 tonnes . The present ( 1996) capacity anticipated from the Community's point of view . amounts to 3 000 tonnes . The present utilization is 2 300 tonnes on 5 working days , which means a rate of capacity utilisation of 76,87 % . It is planned to maintain Therefore, aid beneficiaries will normally be expected to the already reduced capacity . This is necessary with the make a significant contribution to the restructuring plan plan to restore profitability . A further reduction in from their own resources , or from external commercial capacity should push the company below the efficiency financing . threshold .

As already mentioned it is questionable whether the Although Tripits has already drastically cut capacities by aid amounts only to DM 8,2 million or whether the 50 % , no further capacity reduction is planned . DM 10 million waiver by HeLaBa also has to be According to the Community guidelines on State aid for regarded as constituting aid . rescuing and restructuring firms in difficulty (OJ No C 368 , 23 . 12 . 1994), point 3.2.2 (ii), where there is a structural excess of prodution capacity in the relevant market, the restructuring plan must make a contribution , Since the privatization, aid has amounted to DM 34,714 proportionate to the amount of aid received , by irre million . DM 26,5 million was used to keep the company versibly reducing or closing capacity . alive until privatization and was waived to rearrange the company's financial structure . DM 8,2 million was used to cofinance the operational restructuring effort . The workforce has already been reduced from more than 900 in 1990 to 420 in 1992 , 362 in 1993 , and 326 at the beginning of 1996 and was further reduced to 290 by The present aid package has come on top of the aid the end of 1996 . By that time the workforce had been package which was awarded in 1993 at the time of the reduced by more than 60 % . privatization . As mentioned above , the old aid came under the Treuhand regime . One could conclude that the increasing export share from 20 % in 1995 to 38 % in 1998 will lead to adverse effects on competitors . One should consider that, on the Triptis has already spent its own resources amounting to one hand , this is to be considered as a replacement for DM 17 million in investment and DM 24,7 million in the former Eastern European markets which were lost loss cover . In 1996 the company also committed itself to and , on the other hand , that the position of Triptis in the making further investments amounting to DM 2,5 market still remains negligible ( market share in Germany million and the investors are each spending DM 100 000 . amounting to 3,6 %). As their own resources are exhausted , they cannot spend more private capital . This is significant financial contribution taking into account the fact that the While examining the criterion of avoidance of undue investors are private persons and not undertakings with distortion of competition one should also keep in mind strong finances . that Tripits Porzellan is situated in a depressed area within the meaning of Article 92 ( 3 ) (a) of the EC Treaty which is suffering from a high unemployment To limit the distortive effect, the form in which the aid is rate . When assessing this restructuring aid the granted must be such as to avoid providing the company Commission must take the needs of regional devel with surplus cash which could be used for aggressive , opment into account . According to the "Guidelines for market-distorting activities not linked to the restruc rescuing and restructuring firms in difficulty", the turing process . From the amount of DM 8 million question of capacity reduction does not have to be provided to Triptis Porzellan GmbH , only DM 600 000 viewed in such a strict way in these cases (see point 3.2.3 is available as cash DM 7,4 million is provided in order of the guidelines for rescue and restructuring aid). to cover the losses of 1994-1996 . These losses are due to the high amount of old liabilities and interest rates . In view of the severe overcapacity in the procelain sector, it is not clear whether the aid is going to lead to undue distortions of competition and whether a further Taking into account first the uncertainty about the exact capacity reduction must be required . Therefore the amount of aid and secondly the overcapacity within the competitors should have the opportunity to express their procelain sector, the undercertain competitive effect of opinion to the Commission . the aid and that no further capacity reductions are 15 . 8 . 97 EN Official Journal of the European Communities No C 250/9

planned, the Commission has decided to initiate The abolishment of the aid involves repayment, in proceedings pursuant to Article 93 (2 ) of the EC Treaty accordance with procedures and provisions of German against the above aid(s) granted to Triptis Porzellan law, with interest, based on the interest rate used as a GmbH . reference rate in the assessment of regional aid schemes , starting to run on the date on which the unlawful aid was granted . As part of the proceedings the Commission hereby gives your Government the opportunity to present, within one month of being notified of this letter, its comments and The Commission also requests your Government to any information relevant to the waiver by HeLaBa and inform the recipient firm without any delay of the possible capacity reductions which could limit undue initiation of procedings and the fact that they might have distortions of trade . The Commission also asks your to repay aid improperly received.' Government to transmit information on the privatization procedure of the enterprise and on sny further aid that was awarded before privatization . The Commission hereby gives the other Member States and interested parties notice to submit their comments on the measures in question within one month of the date of The Commission would remind you of the suspensory the publication of this notice to : effect of Article 93 (3 ) of the EC Treaty and would draw your attention to the communication published in the Commission of the European Communities, Official Journal of the European Communities No C 318 , Rue de la Loi/Wetstraat 200, 24 . 11 . 1983, p. 3 , in which it was stipulated that any aid B-1049 Brussels . granted unlawfully, i.e. without prior notification or without awaiting the Commission's final decision under the procedure provided for in Article 93 (2) of the EC The comments will be communicated to the German Treaty, may have to be recovered from the recipient . Government.

STATE AID C 36/97 (ex N 668/96 and N 72-73/97) Luxembourg

(97/C 250/04)

(Text with EEA relevance)

(Article 6 (5) of the Steel Aid Code (Commission Decision No 2496/96/ECSC of 18 December 1996

Commission notice pursuant to Article 6 (5) of the Steel Aid Code (Commission Decision No 2496/96/ECSC of 18 December 1996) to other Member States and interested parties concerning the granting of assistance under the Luxembourg R&D aid scheme to Arbed SA and Ares SA

The Commission has sent the Luxembourg Government Decision No 2496/96/ECSC of 18 December 1996 ) ('), the following letter, informing them that they have of several grants of aid to Arbed SA and Ares SA under decided to initiate proceedings pursuant to Article 6 (5 ) the R&D aid scheme provided for pursuant to Article 6 of the Steel Aid Code : of the Grand Duchy of Luxembourg's Framework Law on economic development and diversification of 27 July 'By letters dated 3 September 1996 and 21 January 1997 , 1993 . The Commission had earlier agreed to the your authorities notified the Commission pursuant to Article 6 ( 1 ) of the Steel Aid Code (Commission (') OJ No L 338 , 28 . 12 . 1996 .