Details of how the aid will be paid out were being workedout by Germany's Economy Ministry and the plan would have to beapproved by the European Union Commission, the bloc's executivearm, he said. The WVM had campaigned for the aid to be paid to thealuminium, zinc and copper industries to help them overcome thehurdle of high German power costs during the economic slowdown,Kneer said. Meanwhile, the 40 million euros aid package for 2009 couldbe paid out to firms in around two months, said Martin Kneer,chief executive of the German metal industry association WVM. "We do not only need a solution for 2009, we also require along-term solution to give the long-term planning security thatindustry needs," he said.
On this basis we will thenmake a decision." LONG-TERM SOLUTION Bell could not give a time scale for how long the assessmentwould last but said the longer-term conditions would also haveto be developed by Germany's new government after the country'sparliamentary elections in September this year. "Production will remain at this level until we know more,"Bell said. "We need to know what will be the business conditionsfor Neuss." "The 40 million euros are there but we need to find out theconcrete details of what this means. The Neuss plant has capacity to produce 230,000 tonnes ofprimary aluminium annually but is currently producing only about4,000 tonnes a month or about 50,000 tonnes on an annual basis. Germany's ruling government coalition has decided to giveextra aid of 40 million euros ($55.91 million) in 2009 to helpthe non-ferrous metal industry overcome the impact of theeconomic slowdown and high German power costs. But the Neuss plant will remain in operation at its currentreduced level while the details of a new German government planto help the non-ferrous metals industry are assessed, NorskHydro executive board member Oliver Bell told Reuters.
Hydro said in April it would stop production at theloss-making aluminium plant at Neuss in June because of highGerman electricity costs and weak demand. * German govt to give extra aid of 40 million euros in 2009 * No time scale for how long assessment will last * Board member says industry needs long-term solution (Adds detail from paragraph four) By Michael Hogan HAMBURG, July 6 (Reuters) - Hydro Aluminium, the German unitof Norwegian group Norsk Hydro (NHY.OL), is to keep its largeGerman aluminium plant at Neuss open for the immediate futurewhile a new German state aid plan for metal companies isassessed, a senior Norsk Hydro executive said on Monday. This appears to be muchtoo pessimistic, but it is certain that there will be closures. Although a recovery may well start in 2010, this willonly show through strongly in 2011. One former industry executive is forecastingthat more than 60 titles will close by the end of 2009.


August 26th, 2010
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