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24.4.2012 Official
Journal
of
the
European
Union L
112/89
ANNEX VIII
Commitments undertaken by the Republic of Croatia on the restructuring of the Croatian shipbuilding industry
(referred to in Article 36(1), third subparagraph, of the Act of Accession)
The shipbuilding companies to be restructured (hereinafter referred to as ‘the companies’) are the following:
— Brodograevna industrija 3. MAJ dioniko drutvo, Rijeka (hereinafter referred to as ‘3. MAJ’)
— BRODOTROGIR d.d., Trogir (hereinafter referred to as ‘Brodotrogir’)
— BRODOGRAEVNA INDUSTRIJA SPLIT, dioniko drutvo, Split (hereinafter referred to as ‘Brodosplit’)
— BRODOSPLIT-BRODOGRADILITE SPECIJALNIH OBJEKATA drutvo s ogranienom odgovornou, Split (hereinafter
referred to as ‘BSO’)
— BRODOGRADILITE KRALJEVICA dioniko drutvo za izgradnju i popravak brodova, Kraljevica (hereinafter referred
to as ‘Kraljevica’).
Croatia agreed to carry out the restructuring of these companies through their privatisation on the basis of a competitive
tendering process. Restructuring plans for these companies have been submitted by the bidders and accepted by the
Croatian Competition Agency and the Commission. The restructuring plans will be incorporated in the respective
privatisation contracts to be concluded between Croatia and the buyers of the companies.
The restructuring plans submitted for each of these companies specify the following key conditions to be respected in the
restructuring process:
— All State aid received by these companies since 1 March 2006 must be counted as restructuring aid. The companies
shall provide a contribution to the restructuring plan from their own resources which must be real, free of State aid
and which represents at least 40 % of the total restructuring costs.
— The overall production capacity of the companies shall be reduced compared to the levels of 1 June 2011 from
471 324 CGT to 372 346 CGT. The companies shall reduce their production capacity no later than twelve months
after the signing of the privatisation contract. Capacity reduction shall be implemented through the permanent closure
of slipways, through the designation of slipways for exclusive military production within the meaning of Article 346
of the TFEU and/or through surface area reduction. The CGTs are the units of measurement of output calculated
according to the applicable OECD rules.
— The total annual production of the companies shall be limited to 323 600 CGT for a ten year period, starting on
1 January 2011. The companies' output will be limited to the following levels ( 1 ):
— 3. MAJ: 109 570 CGT
— Brodotrogir: 54 955 CGT
— Brodosplit and BSO: 132 078 CGT
— Kraljevica: 26 997 CGT
The companies may agree to review their individual production limits. On the basis of binding agreements, they can
expressly establish which portion of their individual production quota (expressed in CGTs) they cede to each other.
The overall yearly production limit of 323 600 CGT shall be respected.
— The restructuring plans also specify a number of other measures which each company will implement to ensure a
return to long term viability.
Any subsequent change to these plans shall comply with the key conditions in the restructuring process listed above and
shall be submitted to the Commission for acceptance.
( 1 ) The annual production of a given company is calculated as follows: The start of production of a ship is the planned date of steel
cutting and the end of production is the date of expected delivery of the ship as set out in the contract with the buyer (or the
anticipated date of delivery of the incomplete ship when the construction of a ship is shared between two companies). The number of
CGTs corresponding to a ship is linearly allocated to the calendar years covering the production period. The total output of a company
in a given year is calculated by adding the number of CGTs produced over that year.

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L 112/90
EN
Official Journal of the European Union
24.4.2012
The companies shall not receive any new rescue or restructuring aid until at least ten years have elapsed since the date of
signature of the privatisation contract. Upon Croatia's accession, the Commission shall order Croatia to recover any rescue
or restructuring aid granted in breach of this provision, with compound interest.
The restructuring plans that have been accepted by the Croatian Competition Agency and by the Commission will be
incorporated in the respective privatisation contracts to be concluded between Croatia and buyers of the companies. The
privatisation contracts shall be submitted to the Commission for acceptance and shall be signed before Croatia's accession.
The Commission shall closely monitor the implementation of the restructuring plans and compliance with the conditions
set out in this Annex regarding the level of State aid, the own contribution, the capacity reductions, the production
limitation and the measures taken to ensure a return to viability.
This monitoring shall be carried out each year of the restructuring period. Croatia shall comply fully with all the
arrangements for monitoring. In particular:
— Croatia shall supply the Commission with six-monthly reports concerning the restructuring of the benefiting
companies, no later than 15 January and 15 July each year until the end of the restructuring period.
— The reports shall contain all the information necessary to monitor the restructuring process, the own contribution, the
reduction of capacity, the production limitation and the measures taken to ensure a return to viability.
— Croatia shall submit reports on the annual output of the companies under restructuring no later than 15 July each
year, until the end of 2020.
— Croatia shall oblige the companies to disclose all relevant data which might, under other circumstances, be considered
as confidential. The Commission shall ensure that the company-specific confidential information is not disclosed.
The Commission may at any time decide to mandate an independent expert to evaluate the monitoring results, undertake
any research necessary and report to the Commission. Croatia will provide full cooperation to the independent expert
appointed by the Commission and ensure that such expert has full access to all information needed to carry out the tasks
entrusted to him by the Commission.
Upon Croatia's accession, the Commission shall order Croatia to recover all rescue or restructuring aid granted since
1 March 2006 to a particular company, with compound interest if:
— the privatisation contract for this company has not yet been signed or does not fully incorporate the conditions set
out in the restructuring plan accepted by the Croatian Competition Agency and by the Commission, or
— the company has not provided a real, State aid free contribution from its own resources which represents at least
40 % of the restructuring costs, or
— the reduction of the overall production capacity has not been implemented within twelve months from the signing of
the privatisation contract. In that case, the recovery of the aid shall only be required from those companies that have
not achieved the following individual reductions of capacity:
— 3. MAJ: by 46 543 CGT
— Brodotrogir: by 15 101 CGT
— Brodosplit and BSO: by 29 611 CGT
— Kraljevica: by 9 636 CGT, or
— the overall production limitation for the companies (i.e. 323 600 CGT) has been exceeded in any individual calendar
year between 2011 and 2020. In that case, the recovery of the aid shall be required from those companies that have
exceeded their individual production limits (if applicable, as amended by a legally binding agreement with another
shipbuilding company).

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