5.11.93 Official Journal of the European Communities No L 273/51 COMMISSION COMMISSION DECISION of 22 July 1993 concerning aid the Italian Government intends to grant to Cartiere del Garda (Only the Italian text is authentic) (93/564/EEC) THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Economic Community, and in particular the first subpara- graph of Article 93 (2) thereof, Having, in accordance with the abovementioned Article, given notice to the parties concerned to submit their comments to it, Whereas : Provincial law No 7 dated 8 April 1991 (*) of the Autono- mous Province of Trento (PAT) provides, at Article 1, for financial interventions to safeguard the environment and - to reorganize land in the productive sector. The provincial authorities can thereby provide grants to existing compa- nies in areas indicated by the PAT for a complete or partial transfer of their activities. Such grants can also be provided in the case of existing companies that wish to expand in areas indicated by the PAT. According to Article 1 (1) of the law, the grants will cover the additional cost incurred by the company for the transfer. If it should be particularly difficult to identify that additional cost, Article 1 (2) provides the option of a lump-sum grant of up to 30 % of the total cost of investment in fixed assets, with the exception of the cost of land. Provincial law No 7/91 was not notified to the Commis- sion pursuant to Article 93 (3) of the Treaty before it was (") Legge provinciale 8 aprile 1991, n. 7 ‘Provvedimenti in mate- ria di armonizzazione dello sviluppo produttivo agli obiettivi ambientali e di tutela della qualitd e dell’ambiente di lavoro’ in Bollettino Ufficiale della Regione Autonoma Trentino — Alto Adige, 16 aprile 1991, n. 17. adopted. The Commission was, however, informed of the intention of the provincial authorities to apply the law for the first time in favour of the paper manufacturer Cartiere del Garda, located in Riva del Garda. Cartiere del Garda in its present state has the capacity to manufacture annually 180 000 tonnes of middle-weight or heavy coated printing paper ; it has some 600 employees. The company, which belongs to the German Bertelsmann publishing group, is today a relatively modern and profi- table company. But in order to remain so in the years to come, it needs to double its productive capacity by instal- ling an additional machine. For this expansion the company possesses 70 000 m? of land adjacent to its present site. This land, which belonged to the former Atlas Holzwerke, was bought by Cartiere del Garda eight years ago. According to the provincial urban plans and the municipal plan of Riva, this land is earmarked for productive and industrial activi- ties. The provincial authorities would, however, prefer that the expansion take place not in Riva del Garda but rather in Mori, 20 km away. Riva del Garda is popular with tourists and additional industrial activities there would not improve this town’s touristic attraction but rather impair its environmental situation. If Cartiere del Garda should decide to install its new machine in Mori, whilst its present plant in Riva remained as it is for the rest of its useful life, this choice would entail additional investment and operating cost when compared with an expansion in Riva. The addi- tional investments are caused by the differences between a greenfield site (Mori) and a brownfield site (Riva), the additional operating cost being due to additional personnel and transport between the two sites if Mori is chosen.