30.4.2007 Official Journal of the European Union L 112/67 COMMISSION DECISION of 20 December 2006 on State aid No C 44/05 (ex NN 79/05, ex N 439/04) partially implemented by Poland for Huta Stalowa Wola S.A. (notified under document number C(2006) 6730) (Only the Polish version is authentic) (Text with EEA relevance) (2007/257EC) THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Commu- nity, and in particular the first subparagraph of Article 88(2) thereof, Having regard to the Agreement on the European Economic Area, and in particular Article 62(1)(a) thereof, Having called on interested parties to submit their comments (*) pursuant to those provisions, Whereas: 1. PROCEDURE By letter of 8 October 2004, Poland informed the Commission of restructuring aid granted to Huta Stalowa Wola S.A. (hereinafter referred to as ‘HSW’ or ‘the recipient’) with a view to obtaining legal certainty that the aid was granted before accession and was, as a result, not applicable after accession and that it did not constitute new aid which could be examined by the Commission under Article 88 of the EC Treaty. In the event of the Commission finding that this aid constituted new aid, Poland asked for it to be approved as restructuring aid. The Commission requested Poland to provide further information by letters dated 11 November 2004, 1 March 2005, 27 April 2005 and 26 July 2005, to which Poland replied by letters dated 31 January 2005, registered as received on 2 February, 4 April 2005, registered as received on 8 April, 7 June 2005, registered as received on 9 June, and 2 September 2005, registered as received on 6 September. In the course of this exchange of correspondence it emerged that some of the notified aid had been put into effect in contravention of Article 88(3) of the EC Treaty. The case was therefore classified as unlawful aid and a new case number was attributed (NN 79/2005). () OJ C 34, 10.2.2006, p. 5. 4) ©) By letter of 23 November 2005, the Commission informed Poland that it had decided to initiate the procedure laid down in Article 88(2) of the EC Treaty in respect of the aid. The Commission’s decision to initiate the Article 88(2) procedure was published in the Official Journal of the European  Union. () The Commission invited interested parties to submit their comments on the aid. The Polish authorities submitted their observations by letter of 7 March 2006, registered as received on 9 March. No comments from third parties have been received. 2. DETAILED DESCRIPTION OF THE AID 21 The company HSW, the aid recipient and parent company of the HSW holding company, is based in Stalowa Wola in Podkarpackie province. This region is eligible for aid under Article 87(3) (a) of the EC Treaty. In February 2006 the holding company comprised eight companies in which HSW held at least 51 % of the shares (which it controlled) and ten in which it held less than 51 %. The companies which make up the HSW holding company operate as mutual suppliers of goods and services. Apart from the parent company itself, the companies with the largest stake in the holding company are HSW-Zaklad Zespoléw Napedowych Sp. z 0.0 and HSW-Zaklad Zespoléw Mechanicznych Sp. z 0.0. HSW's share of sales to the companies forming part of the holding company as a percentage of its total sales amounts to 20-30 %. HSW was set up in 1937 and initially produced guns and stainless steel. Unlike its subsidiary HSW—Zaklad Metalur- giczny, it is not a steel producer. In 1991 it was converted into a joint stock company. The State still owns 76 % of the shares and employees hold 9 %. The remainder is accounted for by private and public shareholders none of which has a holding in excess of 5%. The company manufactures construction equipment and machinery and military equipment (guns, howitzers, etc.). HSW had about 2 400 employees in 2005, down from 3173 in 2002. () See footnote 1.