L177)24 Official Journal of the European Communities 13.7.1999 (Acts whose publication is not obligatory) COMMISSION COMMISSION DECISION of 28 October 1998 on State aid which Spain is planning to implement in favour of AG Tubos Europa SA (notified under document number C(1998) 3438) (Only the Spanish text is authentic) (Text with EEA relevance) (1999/450/EC) THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Community, and in particular the first subparagraph of Article 93(2) thereof, Having regard to the Agreement establishing 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: I. PROCEDURE By letter dated 29 October 1997, the Spanish Permanent Representation to the European Union notified the Commis- sion of a plan to grant regional investment aid to AG Tubos Europa SA, a new subsidiary of the Spanish group Alfonso Gallardo, to be created in the region of Extremadura. It furn- ished the Commission with supplementary information by letter dated 22 January 1998. By letter dated 11 March 1998, the Commission informed Spain of its decision to initiate the procedure laid down in Article 93(2) of the EC Treaty in respect of the aid. The Commission decision to initiate the procedure was published in the Official Journal of the European Communities (). () O] C 156, 21.5.1998, p. 11. () See footnote 1. The Commission called on interested parties to submit their comments. The Commission received comments from the United Kingdom Steel Association, the Wirtschaftsvereinigung Stahlrohre (the German association of steel tube producers) and the German Ministry for Economic Affairs. It forwarded them to Spain, which was given the opportunity to react. Spain's initial comments were received by letter dated 9 April 1998 and its reaction to third parties' comments by letters dated 23 July and 4 August 1998. II. DETAILED DESCRIPTION OF THE AID The aid consists of a regional grant of ESP 1175 million towards an initial investment of ESP 5596 million, repre- senting an aid intensity of 21 %. The new company is to produce steel tubes, and in particular large and small welded hollow sections. Technically, it will have an annual maximum production capacity of 225 000 tonnes, but its annual produc- tion is, however, to be limited initially to 100 000 tonnes. It will produce both large (diameter larger than 406,4 mm) and small tubes, round and shaped. Production of large tubes is expected to represent around 25 % of total production. The plant will employ 60 people. State aid to the sector of large welded steel tubes is subject to prior notification to the Commission in accordance with point 4.1(a) of the Community framework for certain steel sectors not covered by the ECSC Treaty () (hereinafter ‘the EC frame- work for steel’), and it cannot be implemented before it has () O] C 320, 13.12.1988, p. 3.