IP/98/186

Brussels, 26th February 1998

Restructuring of the Volkswerft shipyard in Stralsund (Germany, Mecklenburg-Western Pomerania)

The European Commission has approved yesterday the reprivatisation of the Volkswerft shipyard in Stralsund (former GDR) on the basis of its sale to Odense Steelshipyard A.S. (Denmark) and, in this connection, has authorised a second tranche of restructuring aid.

Until 1996, Volkswerft belonged to Bremer Vulkan Verbund. After the latter went bankrupt, it was taken over by the Bundesanstalt für vereinigungsbedingte Sonderaufgaben (BvS) and the Land Government of Mecklenburg-Western Pomerania. In the summer of 1997, the Council adopted the rules governing the authorisation of aid needed to continue restructuring (Regulation 1013/97). The Commission subsequently released an initial tranche of aid.

In the meantime, the owners entrusted an international investment bank with the task of finding a buyer for the shipyard. After a world-wide call for tenders, they eventually accepted that of the last remaining bidder, Odense Steelshipyard A.S.

The sale is taking place in the form of an asset deal since the buyer does not wish to take over any of the liabilities inherited from the time when Volkswerft belonged to Bremer Vulkan. The Commission's scrutiny of the sale has concentrated on whether the agreements in question guarantee that the sale is not coupled with any aid over and above the amount to be granted under the restructuring plan notified when Regulation 1013/97 was adopted by the Council. For its part, the German Government has expressly undertaken not to grant any such aid.

The Commission has reached the conclusion that, even on the basis of a cautious valuation of all inherited liabilities, no additional aid is involved. In accordance with Article 6 of the Seventh Shipbuilding Aid Directive and with Council Regulation 1013/97, it has also decided not to raise any objection to the release of a second tranche of restructuring aid totalling DM 129.6 million. The Commission will continue to monitor progress with restructuring on the basis of the existing rules.