23.10.1999 Official Journal of the European Communities L 274/23 COMMISSION DECISION of 8 July 1999 on state aid implemented by Germany in favour of Kvaerner Warnow Werft GmbH [notified under document number C(1999) 2266] (Only the German text is authentic) (Text with EEA relevance) (1999/675EC) THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Communities, 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 regard to Council Directive 90/684/EEC(!) of 21 December 1990 on aid to shipbuilding and Council Directive 92/68/EEC(?) of 20 July 1992 amending Directive 90/684/EEC on aid to shipbuilding, Having called on interested parties to submit their comments pursuant to the provisions cited above () and having regard to their comments, Whereas: I. Procedure (1) By receiving on 4 September 1998 the regular moni- toring report of 30 June 1998 on the shipbuilding capacity of Kvaerner Warnow Werft GmbH (herein- after referred to as KWW), the Commission was informed that KWW would exceed its annual new- building capacity limitation of 85000 cgt in both 1998 and 1999. The foreseen production indicated in the report was 106 945 cgt for 1998 and 104 560 cgt for 1999. The Commission services sent a letter to the German authorities on 25 September 1998 requesting them to take the necessary measures to make the undertaking comply with the capacity limitation and to inform the Commission of the contents and the result of these measures. Germany replied with its letter dated 20 October 1998. ) By letter dated 16 December 1998, the Commission informed Germany of its decision to initiate the procedure laid down in Article 93(2) of the EC Treaty in respect of this exceeding of the capacity limitation. (") OJ L 380, 31.12.1990, p.27. Directive as last amended by Directive 94/73/EC (O] L 351, 31.12.1994, p. 10). () OJL 219, 4.8.1992, p. 54. (3) OJ C41,16.2.1999, p. 23. (3) The Commission decision to initiate the procedure was published in the Official Journal of the European Communities(*). The Commission invited interested parties to submit their comments on the matter. 4) The Commission has received comments from interes- ted parties. It has forwarded them to Germany, which was given the opportunity to react. Germany submitted its comments with a letter dated 18 February 1999. (5) The Commission services conducted a regular monit- oring visit to the yard with an external expert on 14 January 1999. It was discovered that the actual production of KWW in 1998 was much greater than indicated in the monitoring report of 30 June 1998. The Commission requested Germany to comment on the findings of the visit in a letter dated 4 February 1999. Germany submitted its comments with a letter dated 18 February 1999. (6) On the further request of the Commission with the letter of 1 March 1999, Germany confirmed the findings of the Commission as regards the production figures of 1998 in its letter of 19 March 1999 and indicated a revised production figure of 122 414 cgt. 7) The Commission services conducted a further monit- oring visit to the yard on 25 March 1999 with an external expert in order to verify the amount of excess production in 1998. It was confirmed that the production of KWW in 1998 was 122 414 cgt and its production in 1997 was 93 862 cgt, also exceeding the capacity limitation. The foreseen production for 1999 was indicated to be 109 134 cgt. (8)  This decision concerns only the exceeding of KWW of its capacity limitation in 1998. The Commission intends to open the procedure pursuant to Article 88(2) of the EC Treaty as regards the exceeding of the capacity limitation in 1997. This opening of procedure is subject to a separate Commission decision. (*) OJ C41,16.2.1999, p. 23.