Commission, December 18, 2009, No M.5664

 Dear Sir/Madam,

Subject: Case No COMP/M.5664 – Bilfinger Berger/ MCE

Notification of 29.10.2009 pursuant to Article 4 of Council Regulation No 139/20041

 1.  On 29 October 2009, the Commission received a notification of a proposed concentration pursuant to Article 4 of the Council Regulation (EC) N° 139/2004 ("Merger Regulation") by which the undertaking Bilfinger Berger AG ("Bilfinger Berger", Germany) acquires within the meaning of Article 3(1)(b) of the Merger Regulation control of the whole of the undertaking MCE AG ("MCE", Austria) by way of purchase of shares.

I. THE PARTIES

 2. Bilfinger Berger is active in the construction sector and in the provision of industrial services on a worldwide basis. In the industrial services sector, Bilfinger Berger is active through its subsidiaries Bilfinger Berger Industrial Services AG ("BIS") and Bilfinger Berger Power Services GmbH ("BBPS").

3.  MCE is currently owned by DBG Tau GmbH & CO KG, DBG Tau II GmbH & Co KG and MCE Beteiligungs GmbH & Co KG. MCE is active in industrial services on a worldwide basis, with a focus on Austria and Germany.

II. THE TRANSACTION AND THE CONCENTRATION

 4.  The parties signed a Shares Purchase Agreement ("SPA") on 3 October 2009 providing for the acquisition of 100% of the MCE shares by Bilfinger Berger. This will result in a change of control on a lasting basis, constituting a concentration within the meaning of Art 3(1)(b) of the Merger Regulation.

III. COMMUNITY DIMENSION

 5.  The transaction has a Community dimension pursuant to Article 1(2) of the Merger Regulation. The parties have a combined aggregate worldwide turnover in excess of EUR 5 billion in 2008 (Bilfinger Berger: EUR 9,800 million, MCE: EUR 920 million), and Bilfinger Berger and MCE have each a Community-wide turnover in excess of EUR 250 million (Bilfinger Berger: EUR […] million, MCE: EUR […] million). Bilfinger Berger and MCE did not achieve more than two thirds of their EU-wide turnover in one and the same Member State.

IV.  RELEVANT MARKETS

 6.  The transaction concerns the industrial services sector. Companies like Bilfinger Berger or MCE are providing life-cycle-management services for industrial production plants, which include the installation of new equipment as well as the maintenance and repair of existing facilities. Bilfinger Berger and MCE offer similar services in various industrial sectors, for example, in the chemical industry, the energy sector and the pharmaceutical and biotechnology sector.

A. Industrial services

 Product and geographic market definition

 7. The Commission has previously dealt with industrial services in specific sectors such as the metallurgy and power generation.2 In the more recent case, M.3653 – Siemens / VA Tech, while leaving the market definition open, the Commission pointed to a possible distinction between the construction/installation services and maintenance services.

8. In the present case, the notifying party submits that there is one single market for industrial services. A clear distinction between construction/installation and maintenance would not be feasible. From a demand side customers would continuously improve existing installations, which includes exchange of components or repairs. In addition, all important competitors would provide both construction/installation services as well as maintenance/repair services. Furthermore, a subdivision into different economic sectors in which the industrial services are provided (e.g. into industrial services in the energy sector or chemical industry) would not be relevant as the installed components are similar along the sectors, and industrial service providers would have the know-how to address the demand for different services in different sectors.

9.  However, several respondents to the market investigation indicated that a distinction between construction/installation services and maintenance services is appropriate as a number of suppliers are only active in maintenance services and do not possess the engineering capacities needed for construction/installation services.

10. Regarding the possible sub-segmentation according to industrial sectors, the market investigation broadly showed that such a distinction is necessary as standards (certification and accreditation systems) or technical requirements are different in different industrial sectors. Moreover, the market investigation clearly indicated that there is a separate market for the installation of high pressure pipes (see section B. below).

11. Regarding the relevant geographic market for industrial services, the notifying  party submits that the market is at least EEA-wide in scope. In previous practice,3 the Commission found that, due to the structure of demand, there were indications that the market could be narrower than EEA-wide in scope. During the market investigation in the present case, an important number of respondents in construction/installation services indicated that the market is EEA-wide in scope; however, some players expressed preference for national suppliers. As to the maintenance services, there are indications that the market might be rather national in scope as customers generally contract with national/regional players, and language and proximity were indicated as important elements.

12. However, for the present case the product and geographic market definition can be left open as the transaction will not lead to affected markets for industrial services irrespective of the exact product and/or geographic market definition.

B. Installation of high pressure pipes

 Product market definition

 13.   High pressure pipes are used in chemical plants4 as well as in all types of power plants. Most of the high pressure pipes are installed in power plants.5 In the electricity generation, these tubes connect the boiler with the generator and have a wall thickness of 80-200 mm and must bear pressures of more than 63 bar and up to 200 bar and temperatures over 600 degrees Celsius. All these characteristics insure that the high safety requirements, extremely important in sectors such as electricity generation, are respected. In power plants the pipes (including their installation) represent up to 10% of the entire costs of a newly built block.6

14.  The notifying party submits that there is no relevant product market for the installation  of high pressure pipes as separate tendering of this service is only organised because of practical reasons, mainly the longer ordering time of the pipes.

15.   However, the market investigation clearly showed that the installation of high pressure pipes demonstrates demand and supply side characteristics of a separate product market. Due to their size and their importance for a power plant, customers tender the  installation of high-pressure pipes in separate lots. The market investigation showed that this is not only due to the practicalities of the ordering of the pipes (as argued by the notifying party) but actually due to the specificities of this highly safety relevant   sector

i.e. the fact that the pre-fabrication and installation of the pipes requires special equipment (special bending machines) and highly qualified personnel (specialised welders that are certified and have to regularly renew their certification). Furthermore, risk-related elements and ability to work with new materials (e.g. "Alloy67") limit the number of providers that are able to work in the installation of high pressure pipes.

Geographic market definition

 16. The notifying party submits that the scope of this market is EEA-wide mainly due to the EEA-wide tendering process.

17.   However, the market investigation showed that although the tenders have been indeed open to competitors from all Member States, there was only very limited participation  by foreign companies in tenders in Germany and Austria during the last 4 years. With apparently one exception7, the winners of the tenders have been German or Austrian companies only.

18.   The market investigation showed that this outcome of the tendering process can be explained by a series of factors all pointing to an Austrian/German scope of the geographic market, among others: a) barriers to entry to the German-speaking market, such as language and the importance of reference projects; b) the specific technical and legal implementation standards, and c) the cost of participating in tenders.

19.   Language requirements have been identified by respondents to the market investigation as an important barrier to entry. The installation of the high pressure pipes is a service which takes place in close cooperation with the customer. It appears that during approximately 3 years, the normal timeframe for the planning and installation process, constant assistance in the project language is usually required.

20.   Against the background of the high safety relevance and the impact on the reliability of the power plant, the market investigation pointed to the importance of reference projects when bidding for a project in the installation of high pressure pipes.

21.   The market investigation showed that up to now virtually only German and Austrian providers have been retained for larger projects in these countries. Market participants indicated that French suppliers have hardly had any success in winning a project for the installation of high pressure pipes in Germany, and conversely that German suppliers, including […], have hardly had any success in winning a project in France. In addition, in the past years energy companies in Germany tendered high pressure pipe installation in large lots (up to EUR 150 million per order), which makes it difficult for a foreign competitor without references in Germany to win such a tender. Indeed, the market investigation confirmed that for the highly safety relevant projects, engineers of energy companies in Germany have preferred until now to work together with German  suppliers during the three year planning/installation phase of a high pressure pipe  system.

22.   In addition, certain legal and technical requirements specific to certain Member States are further indications for national markets. In Germany, for example, customers often require their providers of high pressure pipes installation services to comply with the Technische Regeln Druckbehälter standard (TRD). 8  This is an important requirement for the customer as it reduces the costs associated to the revision cycles. Whereas German or Austrian providers are already able to meet this requirement, foreign suppliers will have to make extra investments in order to comply with this norm.

23.   Finally, the cost of participating in tenders was considered another important factor explaining the low participation rate of foreign suppliers in tenders in the German speaking market. This cost is relatively high, estimated by the notifying party to 1-1.5% of the order volume compared to a total profit margin of approximately 5%. Considering the perceived little chances to win a tender, foreign competitors seem not to want to take the risk and therefore do not participate in the tenders.

24.   In the light of the above, it can be concluded for the purpose of this case, that the scope of the geographic market for the installation of high pressure pipes is Germany and Austria ("the German speaking market").

V. COMPETITIVE ASSESSMENT

 A.   Industrial services

 25.   The transaction does not give rise to technically affected market in the industrial  services market. At EEA-level, on an overall market for the industrial services, the combined market shares would be about [0-5%]. Should the market furthermore be split into construction/installation and maintenance, the combined market shares at the EEA level will be [0.5%] in the market for construction/installation and [0-5%] in the market for maintenance. Should a further split into different sector be done, the parties activities would overlap in the energy, biotechnology and pharmaceutical, steel and aluminium, chemical, oil and gas and paper sectors. The highest combined market shares at the EEA level would be about [5-10%] in installation in biotechnology and pharmaceutical  sector. Should the maintenance market be national in scope, the highest  combined market shares would be [10-20%] in Germany, in the chemical sector. The market investigation did not raise any competition concerns in these markets.

B. Installation of high pressure pipes

 26.   Both parties are active in the field of installation of high pressure pipes. Bilfinger Berger is mainly present through its subsidiary BHR, which is part of Bilfinger Berger's BBPS subsidiary. MCE is active in the field of installation of high pressure pipes via four different subsidiaries: MCE Energietechnik, MCE Berlin, VAM Anlagentechnik und Montagen ("VAM") and Bohr- & Rohrtechnik ("BUR").

27.   The installation of high pressure pipes consists of two activities: prefabrication and actual installation. The prefabrication consists of bending the pipes on special machines, the processing of the tubes, and the fixing of fittings and flanges. During the installation, the high pressure pipes are jointed on the site by welding. This is a security relevant process which requires highly specialised welders who need particular qualification certificates.

28.   BHR disposes of bending machines and special welding technology (Orbital) and performs installation services. MCE sub-contracts the bending of the pipes to other companies (such as […]or […]) and provides welding and installation services; it operates according to the highest safety and quality standards.

29.   The market investigation has shown that in the EEA, there are several players active in installation of high pressure pipes such as Kraftanlagen München ("KAM"), E.ON Anlagenservice ("EAS") or Babcock Industry and Power ("BIP") (Germany), Fives  Nordon, Ponticelli and Boccard (France), Bassi (Italy), YIT (Finland), Integral and Zauner (Austria).

30.   However, these players differ in the level of integration. It seems that only Bilfinger Berger's subsidiary, BHR, and its main competitor KAM are "fully" integrated, offering the full range of pre-fabrication services like bending pipes and special in-house  welding techniques as well as on-site installation. MCE and EAS do not possess  bending machines and order these services from other suppliers like […], […] or […]. The other German competitor, […], which has only been active in the installation of  high pressure pipes since 2007, operates its own bending machine. However, respondents to the market investigation explained that access to bending machines can be obtained in the market.

Market structure

 Turnover figures

 31.   Since external studies on the size of the market for the installation of high pressure pipes do not exist, the parties provided an estimate of the total market size and the positioning of their competitors according to turnover in the EEA and in the German speaking market for the years 2006, 2007, 2008 and 2009. On an EEA-wide basis, and taking the notifying party's estimates, the combined market share of the parties were [5-10]% in 2006, [10-20]% in 2007, [10-20]% in 2008, and [10-20]% in 2009, with an overlap of [0-5]% in 2006, [0-5]% in 2007, [0-5]% in 2008, and [5-10]% in 2009.

32.   For the German speaking market on the basis of the notifying party's estimates, the combined market shares of the parties were [10-20]% in 2006, [20-30]% in 2007, [20- 30]% in 2008, and [30-40]% in 2009, with an overlap of [0-5]% in 2006, [5-10]% in 2007, [5-10]% in 2008, and [10-20]% in 2009.

33.   However, it is important to note that the parties' estimated market volume is more than twice as large as the sum of the turnover of all companies active in this market. This  high share of undefined market turnover shows clearly that the notifying party's   figures of the total market size are overestimated.9 As a result, the market shares of the parties differ considerably depending on the market size retained.

34.   The Commission has recalculated in detail market shares for the German speaking market by using turnover data, which were provided by competitors in the market investigation.10  The data of all market participants were added up in order to arrive at  the total market size. Table 1 below shows that the combined market share of the parties was on average between 2006 and 2009, [50-60] % with an average overlap of [10-20] %. While the parties' combined market share was higher in 2006 ([60-70]%) compared  to 2009 ([40-50]%) it is clearly visible how MCE has developed into a strong competitive force with a market share of [5-10]% in 2006 and reaching a market share of [10-20]% in 2009.

Table 1: Turnover data for the German speaking market, 2006-2009

Order volumes figures

 35.   Projects for the installation of high pressure pipes last normally around three years between the signing of the contract and the finalisation of the project. As a result, turnover figures only show to a limited extent the strength of a competitor in the market, and the figures in individual years differ considerable from the values of the orders. This is further complicated by different accounting rules (IRFS or the German HGB) applied by the different players active in the market.

36.   Therefore, the Commission also analysed the market structure based on order volumes  in the German speaking market. Competitors and the parties were asked to provide order volumes for individual power plants in the past four years (2006, 2007, 2008 and 2009).

37.   The results of the Commission's analysis are shown in table 2 below. The average combined market share of the parties based on order volumes between 2006 and 2009 was [50-60%], with an overlap of [5-10%]. The order volume of MCE has risen considerably between 2006 and 2009, and it is important to note that the table does not show orders that MCE has recently gained but are not yet attributed to the 2009 data.

Table 2: Order volumes for the German speaking market, 2006-2009

Shortcomings of the data

 38.   Both turnover data as well as data on order volumes have some shortcomings. Besides the different accounting rules, it cannot entirely be excluded that some turnover data provided by competitors entail the value of the material or other piping works and not only high pressure pipe works. The Commission attempted to harmonise the figures as much as possible.

39.   As to the order volumes figures, some of the competitors allocated the full amount of an order to the year of signing of the contract, whereas other competitors, including the parties, distributed the respective figures over the years of execution of the project.11 In order to overcome these differences and to make the figures comparable, the Commission has also calculated average order volumes for the years 2006 to 2009 as indicated in table 2 above.

40.   Even though these elements complicated the market shares re-calculation, the Commission considers it obtained a clear view on the parties' market position. Indeed, the combination of the results of the turnover analysis together with the analysis based on order volumes gives a fairly clear picture as to the parties' strength and the  importance of MCE as competitor in the German speaking market.

Competitive assessment

 41.   First, the notifying party argues that market shares are not representative of market power. They would merely be indicative for the exceptional economic situation between 2006 and 2008 when the demand for construction of power plants was exceptionally high and did therefore contributed to an increase in demand for the installation of high pressure pipes. These market shares from the past would only offer a distorted image of the future market structure.

42.   However, irrespective of the precise market shares, during the market investigation, customers raised concerns as to the limited choice for the installation of high pressure pipes in a post merger scenario. They have indicated that the only remaining competitor, having the capacity and the ability to offer a similar type of services as the merging parties will be KAM. The other competitors are either too small, or are only present in the market to the extent that they have free capacity.

43.   Moreover, it seems that MCE has grown in only four years into an important competitor (from about [5-10]% market share in 2006 to about [10-20]% market share in 2009, on the turnover figures base), situating itself in third position on the market and winning projects which would secure this strong position for the next 3 to 5 years. It currently offers high quality services, competitive prices, and is considered in the market as one of the few independent players.

44.   Second, the notifying party argues that, as demand for the installation of high pressure pipes would be decreasing (as of 2009), the competition for the new contracts will intensify. According to the notifying party, foreign companies or currently smaller competitors would thus be able to emerge into stronger players should there be a demand for it. Moreover, large customers in the market, such as important energy companies, would be able to sponsor the growth in the market of an existent player.

45.   This scenario has however not been upheld by the market investigation. According to  the Commission's information, there are still several ongoing power plant construction projects in Germany and other EEA countries, binding the capacity of the national players. For instance, a larger European competitor, with an important position in its home country, stated that it does not have enough capacity to cope with big power plant projects in Germany. Such capacity limitations seem to be one of the reasons why foreign competitors have participated only to a very limited extent in tenders in Germany and Austria.

46.   Regarding the growth capacity of the smaller competitors, the market investigation has indicated that some companies are not considered financially very strong. Moreover, others are considered as sub-contractors, or bid only for smaller lots of a project.

47.   Third, the notifying party argues that MCE would not contribute anything to strengthening Bilfinger Berger's market position: it does not add any new technology, nor does it significantly increase Bilfinger Berger's market power which is already the market leader.

48.   However, the purpose of the competitive analysis is the assessment of the effects of MCE's disappearance from the market. As confirmed by the respondents to the market investigation, the acquisition of the third-positioned competitor removes an important competitive constraint to the market leader. The likely effect is reduced competition and an increase in prices for the installation of high pressure pipes in the German speaking market.

49.   Fourth, the notifying party argues that, since projects are tendered EEA-wide, there would be a sufficient number of providers of installation of high pressure pipes to exercise competitive pressure on the merged entity as they have the technical resources, the know- how and the personnel.

50.   The market investigation showed that, in the past, there was hardly any market entry from foreign suppliers into the German speaking market. Several foreign companies indicated that they have not had any contract in the German speaking market and are not considering entering the German speaking market. Only one company indicated that it might consider supplying services in the German speaking market but to a very limited extent.

51.   Furthermore, some competitors indicated the differences in legal and technical requirements as important when considering entering the German speaking market. In particular, the application of the German TRD standard offers advantages for power plant operators insofar as revision cycles12 for their plants are extended to one revision every three years (instead of 2 years). Even though foreign competitors may be able to comply with the TRD norm, their costs will be generally higher as they would need to hire qualified engineers and buy special computer software in order to implement this norm.

 Conclusion on competitive assessment

 52.   The market investigation confirms the strong market position of Bilfinger Berger in the German speaking market for the installation of high pressure pipes. It also shows that MCE has grown into an important competitor to Bilfinger Berger over the years, from [5-10]% in 2006 to [10-20]% in 2009. In the light of the market investigation, it appears that MCE has become the third largest provider in the German speaking market for the installation for high pressure pipes.

53.   Against this background, the Commission concludes that the transaction would lead to a significant increase in market power of Bilfinger Berger through the acquisition of the third positioned competitor in the German speaking market for the installation of high pressure pipes. Other competitors active in the German speaking market are, apart from KAM, either only present on the market to the extent their capacity is not dedicated to intra-group activities (E.ON Anlagenservice) or are rather active as sub-contractors. Therefore, the Commission considers that the present transaction raises serious doubts  as to its compatibility with the common market.

VI. COMMITMENTS

 Description of the proposed remedies

 54.   In order to address the competition concerns raised by the present concentration, Bilfinger Berger submitted on 27 November 2009 a first remedy proposal and, a  revised remedy on 18 December 2009. The remedy consists in the divestment of one of the target's subsidiaries, specialised in the installation of high pressure pipes, MCE Energietechnik. A further ongoing project for the installation of high pressure pipes in the German power plant in […] will be transferred to MCE Energietechnik (MCE Energietechnik including the transferred […] project is hereinafter referred to as "Divestment Business").

55.   MCE Energietechnik is specialised in the installation of high pressure pipes, and the provision of complementary services for power plants. In addition, Bilfinger Berger undertakes to transfer to MCE Energietechnik MCE's share of the ongoing […] project. This project is currently being implemented by the MCE's subsidiary VAM together  with the consortium partner, […]. The transfer of this project is subject to approval by the consortium partner […] and the client, […]. However, should there be no agreement from the consortium partner and/or client, the notifying party commits, from the date of the adoption of the current decision, to attribute all revenues and liabilities resulted from the implementation of the […] project to MCE Energietechnik. The completion of the […] project is envisaged for April 2011 and it comprises outstanding order volumes amounting to about EUR […] million for MCE.

56.   The Divestment Business includes all tangible and intangible assets (including intellectual property rights) which contribute to the current operations of MCE Energietechnik, all licences, permits and authorisations issued by any governmental organisation, all contracts, leases, commitments and customer orders, all  customer, credit and other records. In addition, the commitment also includes the possibility for  the Divestment Business, for a transitional period, to be supplied with products or services on the basis of ongoing contractual relations with Bilfinger Berger or its affiliated companies including MCE at "arms length" terms as they are currently granted to the Divestment Business unless otherwise agreed with the purchasers.

Assessment of the proposed remedies

 57.   The Commitment consists of the sale of a 100% shareholding in MCE Energietechnik (to which the […] project will be transferred). It is as such a structural, clear cut remedy comprising a business that is already active in the market.

Independence, viability and competitiveness of the Divestment Business

 58.   In the Commission's view, and confirmed by the majority of the respondents to the market test, the Divestment Business constitutes an independent and viable business. MCE Energietechnik was previously an independent company and was acquired in the past by MCE and continued to be run as self-standing enterprise within the MCE group. MCE Energietechnik has proven expertise in particular in the installation of high pressure pipes in power plants. It also performs activities in a number of adjacent areas such as the installation of pipelines, mid-pressure and low-pressure pipes.

59.   The Commission considers that, with a turnover of around EUR […] million13 in 2009 up from EUR […] million in 2008, the Divestment Business has the critical mass to be active as a viable competitor in the market. In this regard, it is also important to note that the Divestment Business performs complementary activities beyond the installation of high pressure pipes that will have a positive effect on the viability of the Divestment Business. The notifying party also demonstrated that the Divestment Business has a sufficient number of staff and resources in the planning/engineering field.

60.   Furthermore, the Divestment Business has still a large volume of orders in the installation of high pressure pipes to be executed in the course of the next years. The total stock of orders amounts to about EUR […] million out of which EUR […] million relate to the ongoing […] project, and about EUR […] million to other ongoing projects of MCE Energietechnik. The open stock of orders of the Divestment Business accounts for approximately [80-90] % of the current total stock of orders for the installation of high pressure pipes of the entire MCE group. In addition, the Commission takes note of the notifying party's submission that […], the other subsidiary of MCE which has been active in the installation of high pressure pipes, only has a very small stock of orders at the end of 2009.

Effectiveness of the commitments in removing the competition concerns

 61.   The proposed commitment is a clear-cut, structural remedy and in perspective with the outstanding high stock of orders of EUR […] million largely eliminates the overlap between Bilfinger Berger and MCE. In the market investigation, the majority of respondents indicated that the divestments would be sufficient to remove the identified competition concerns in the German speaking market for the installation for high pressure pipes. Indeed, the Divestment Business appears to have the necessary personnel and the resources to effectively exercise competitive pressure on the combined entity on the market for the installation for high pressure pipes. In particular, the total number of MCE Energietechnik's employees is […] (including key personnel). Further […] are employed on a temporary basis. With this personnel, MCE Energietechnik is able to provide high quality installation of high pressure pipes services, including engineering, bringing into service, quality control and project management.

62.   Regarding the […] project, which is to be transferred to the MCE Energietechnik, the notifying party submitted an overview with the current project structure, identifying individual functions, and indicating how these functions are to be filled by MCE Energietechnik's personnel. On this basis, the Commission considers that MCE Energietechnik has the ability to successfully continue the implementation of the project.Moreover, it appears that the Divestment Business could also be a vehicle for a purchaser to enter or expand in the German speaking market, developing the Divestment Business as a strong competitor towards the merged entity. Some respondents have also indicated that the remedy may facilitate entry into the market of foreign competitors, which otherwise would find it very difficult to organically grow a business in the Germany speaking market for the installation of high pressure pipes.

63.   On this basis, the Commission concludes that the proposed remedies are sufficient to remove the identified serious doubts.

Conditions and obligations

 64.   Under the first sentence of the second subparagraph of Article 6(2) of the Merger Regulation, the Commission may attach to its decision conditions and obligations intended to ensure that the undertakings concerned comply with the commitments they have entered into vis-à-vis the Commission with a view to rendering the concentration compatible with the common market.

65.   The commitments in section B constitute conditions attached to this decision, as only through full compliance therewith can the structural changes in the relevant markets be achieved. The remaining requirements set out in the other Sections of the Commitments constitute obligations.

VII. CONCLUSION

 66.   For the above reasons, the Commission has decided not to oppose the notified operation  and to declare it compatible with the common market and with the EEA Agreement. This decision is adopted in application of Article 6(1)(b) and 6(2) of Council Regulation (EC) No 139/2004.

1    OJ L 24, 29.1.2004 p. 1.

2    COMP/M.3653 – Siemens/VA Tech; COMP/M.1793 – Voith/Siemens JV.

3   COMP/M.3653 – Siemens/VA Tech.

4  The installation of high pressure pipes in chemical plants shows different market characteristics compared to the installation of high pressure pipes in power plants. Order volumes per project are significantly lower, which allows also smaller players to participate in tenders.

5  In Bilfinger Berger's high pressure pipes subsidiary BHR power plants account for [very significant]% of the turnover whereas chemical and petrochemical plants and the steel industry account altogether for [lower]%.

6  World-wide there are only three producers of "raw" tubes. The "raw" tubes are then further processed and installed by companies like Bilfinger Berger or MCE.

7  The only exception, as indicated by the notifying party, seems to be a project in Greifswald, Germany, where the Danish energy company DONG had partly ordered from a non-German supplier. In the meantime DONG announced that it will abandon the Greifswald project.

 8  It appears that the TRD are compatible with the European EN standards; higher national safety standards are permitted.

9   This was also partly acknowledged by the notifying party indicating in a meeting with the Commission that the estimates of the total market size were rather high.

10  For WWV, Integral and Zauner the turnover estimates of the notifying party were used. For BIP the Commission made an own estimate.

11  For example, MCE only capitalises parts of orders in the years where reasonably a delivery can be expected. As a result, the Commission is aware of order volumes in the amount of EUR […] million that MCE has gained but which are not yet included in its data provided for the years 2006-2009. By contrast, the main competitor KAM has provided full order volumes in the years in which they gained their order.

12  For each revision of the high pressure pipe system the power plant has to be shut-down for an entire  week.

13  This figure comprises of MCE Energietechnik's expected 2009 turnover of EUR […] million the turnover of EUR […] million generated by the […] power plant project in 2009.