IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 01 Sep 2009 | Removal date: 31 Aug 2015
Still in force

Bailout (capital injection or equity participation)

On 16 October 2013, theEuropean Commission launched an investigation into the funding of thesteel group Duferco granted by the Belgian region Walloon. In the past,the steel company has received around EUR 517 million (incl. earlier state measures) by the Foreign Strategic Investments Holding (FSIH), which in turnbelongs to the Société walloonne de gestion et de participations fullyowned by the region of Walloon.

 
The beneficiary is aSwiss-based group manufacturing and selling steel in about 50 countries. At the time of the launch of the inquiry, the Duferco group had oneremaining plant operating in Belgium. In Europe, it is also active in Italy, Switzerland, Luxemburg, France and FYRO Macedonia.
 
The aid has been received inthe form equity participation, capital injections and preferential loans. The FSIHrealised three measures worth EUR 275 million since 2009, namely:

  • Sept. 2009 a loan of EUR 100 million to the group's ultimate parent for the duration of 6 years
  • Sept. 2009 a loan of EUR 75 million to Steel Investment Finance, partially owned by Duferco
  • June2011 a capital injection of EUR 100 million into Duferco Long Products.

According to the Commission,the above mentioned state aid provides an "economic advantage unconditioned toan investment by the company" (para. 192, letter from the EC toBelgium, Brussels 16.10.2013; own translation) and the EC has therefore "serious doubts as to the compatibility of themeasures with the internal market" (para. 193; own translation).
 
Update
On 20 January 2016, the Commission ordered Duferco to recover 211 million EUR from several of its subsidiaries.
 
A state measure in the GTAdatabase is assessed solely in terms of the extent to which itsimplementation affects the extent of discrimination against foreigncommercial interests. On this metric, the state aid proposed here is discriminatory.

 

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

110 Coal & peat
2701 Coal; briquettes, ovoids and similar solid fuels manufactured from coal.
270111 Anthracite
270112 Bituminous coal
270119 Other coal
141 Iron ores & concentrates, other than roasted iron pyrites
2601 Iron ores and concentrates, including roasted iron pyrites.
260111 Nonagglomerated
142 Non-ferrous metal ores & concentrates
2602 Manganese ores and concentrates, including ferruginous manganese ores and concentrates with a manganese content of 20 % or more, calculated on the dry weight.
260200 Manganese ores and concentrates, including ferruginous manganese ores and concentrates with a manganese content of 20 % or more, calculated on the dry weight.
331 Coke & semi-coke of coal, of lignite or of peat; retort carbon
2704 Coke and semicoke of coal, of lignite or of peat, whether or not agglomerated; retort carbon.
270400 Coke and semicoke of coal, of lignite or of peat, whether or not agglomerated; retort carbon.
393 Metal wastes or scraps
7204 Ferrous waste and scrap; remelting scrap ingots of iron or steel.
720410 Waste and scrap of cast iron
720421 Of stainless steel
720429 Other
720430 Waste and scrap of tinned iron or steel
720441 Turnings, shavings, chips, milling waste, sawdust, filings, trimmings and stampings, whether or not in bundles
720449 Other
720450 Remelting scrap ingots

Please report this page in case you detect an inaccuracy in its content.