L 94/50 Official Journal of the European Union 1.4.2006 COMMISSION DECISION of 21 September 2005 on State aid No C 5/2004 (ex N 609/2003) which Germany is planning to implement for Kronoply (notified under document number C(2005) 3497) (Only the German text is authentic) (Text with EEA relevance) (2006/262[EC) THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Community, 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 () and having regard to their comments, Whereas: 1. PROCEDURE By letter dated 22 December 2003 (A/39031), Germany notified the Commission that it was planning to award an investment grant to Kronoply GmbH, Heiligengrabe (Brandenburg) (hereinafter ‘Kronoply’) under the multi- sectoral framework on regional aid for large investment projects (3) (1998 multisectoral aid framework’). The notified aid was registered under No N 609/03. By letter dated 18 February 2004 (SG/D[200649), the Commission informed Germany of its decision to initiate the procedure laid down in Article 88(2) of the EC Treaty. The Commission decision to initiate the procedure was published in the Official Journal of the European Union (3). The Commission called on interested parties to submit their comments. (1) O] C 258, 20.10.2004, p. 12. () O] C 107, 7.4.1998, p. 7. () See footnote 2. (4) (6) ~ By letter dated 19 March 2004 (A/32003), Germany submitted its comments. By letter dated 24 May 2004 (A/33878), Luther Menold Rechtsanwaltsgesellschaft mbH submitted comments on behalf of Kronoply. The comments were forwarded to Germany on 19 November 2004 (D/58277). 2. DETAILED DESCRIPTION OF THE AID 2.1. First notification N 8132000 The present case is related to Case No N 813/2000, in which the Commission approved aid to Kronoply. On 3 July 2001 (SG/D/289524) the Commission approved a gross aid intensity of 31,5% for Kronopoly under the 1998 multisectoral aid framework in connection with the construction of a production plant for Oriented Strand Board (¥) (‘OSB’) in Heiligengrabe, Brandenburg, an assisted area within the meaning of Article 87(3)(a) of the EC Treaty. The aid intensity was set 3,5 percentage points lower than the maximum because the relevant market was considered to be in decline. The Commission calculated the three assessment criteria to be applied in determining the maximum allowable aid intensity under the 1998 multisectoral aid framework. Consequently, in order to comply with those criteria, the maximum allowable aid intensity was calculated to be 31,5% (competition factor 0,75, capital-labour factor 0,8 and regional impact factor 1,5). The amount of aid involved was therefore €35,4 million (%). () OSB is a wooden panel used in construction and consisting of three layers of ‘strands’ made primarily of pine. It is used in timber frame construction, in particular for the refurbishment and restoration of old buildings, in the prefabricated building industry and in the packaging industry. Consisting of investment aid in the form of (i) a non-repayable grant amounting to €19,92 million under the 29" general plan of the joint Federal Government/Linder scheme for improving regional economic structures and (ii) an investment allowance of €15,48 million under the Investment Allowance Law 1999.