19. 2. 97 Official Journal of the European Communities No L 48/31 (Acts whose publication is not obligatory) COMMISSION COMMISSION DECISION of 30 July 1996 concerning State aid to Werkstoff-Union GmbH, Lippendorf (Saxony) (Only the German text is authentic) (97/124/ECSC) THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Coal and Steel Community, and in particular Article 4 (c) thereof, Having regard to Commission Decision No 3855/91/ ECSC of 27 November 1991 establishing Community rules for aid to the steel industry ('), and in particular Articles 1, 5 and 6 thereof, Having given notice, in accordance with Article 6 (4) of that Decision, to the other Member States and the parties concerned to submit their comments, Whereas: On 17 January 1995 the Commission decided to initiate the procedure pursuant to Article 6 (4) of Decision No 3855/91/ECSC (hereinafter referred to as ‘the SAC’) with respect to an investment subsidy of DM 46 million, a fiscal concession of DM 17,13 million, deficiency guaran- tees of 62 % of DM 178,3 million and of 62 % of DM 7 million for investments, as well as deficiency guarantees of 65% of DM 25 million and of 65% of DM 20 million for operating materials. Those financial measures () Of No L 362, 31. 12. 1991, p. 57. were taken in respect of an investment of DM 285 million. Germany was informed of that decision by letter of 2 February 1995, which was published in the Official Journal of the European Communities (%). Germany reacted by letter of 14 March 1995, claiming that: — the technical and business orientation of Werkstoff- Union GmbH is the production of non-ferrous metal products made of nickel, nickel alloys and special alloys, and not to the production of ECSC products, — it is expected that in the years 1995 to 1998 ECSC special steel will have to be produced in diminishing quantities. After five years this output will account for less than 1 % of turnover and 5 % of total quantities produced, i.e. approximately 2 000 tonnes, — the capital goods, especially those used for smelting, are intended for the production of non-ferrous materials of the highest quality, yielding proceeds of DM 20 000 per tonne, — a vacuum arc furnace, a vacuum multiple-chambered furnace and two installations for the resmelting of electroslag of 1,2 to 7-tonne charge feed are not suitable for the economical production of special steel, — the plant for shaping by hydraulic forging press and rolling mill, and the machinery for tempering, de- scaling and polishing, match the needs of the highly specialized producers of non-ferrous metals. () OJ No C 283, 27. 10. 1995, p. .