Germany plans aid for non-ferrous metals

HAMBURG, June 19 (Reuters) - Germany plans a special aid programme of 40 million euros ($56 million) to help its non-ferrous metal industry survive the economic slowdown, a policy paper from the ruling coalition said. The coalition has agreed in principle to make the aid available to the aluminium, zinc and copper industries, said a copy of the paper obtained by Reuters. The sum will be available for support in 2009 to non-ferrous metals producers which can show they are suffering from the economic slowdown and high German electricity prices, the document said. Hermann Groehe, a minister in Chancellor Angela Merkel's chancellery ministry, was quoted by the online edition of newspaper Neuss-Grevenbroicher Zeitung as saying the programme had been agreed in principle. Details of an aid programme which conforms with European Union rules will now be worked out by the government, Groethe was quoted as saying. Goehe is also the member of parliament for Neuss, where Hydro Aluminium, the German unit of Norwegian group Norsk Hydro , may stop production at its loss-making aluminium plant in June if talks to cut power supply costs are not successful. Hydro Aluminium had said in January it might close Neuss, one of west Europe's largest primary aluminium plants, this summer because of high German power costs. It also announced output cuts as the plant was losing around 300,000 euros a day. The new financial aid planned will prevent closures of metal plants and the transfer of production abroad with the heavy loss of jobs, the policy paper obtained by Reuters said. From 2010, it was expected that greater competition in Germany's electricity transmissions system would enable the non-ferrous industry to buy supplies at lower prices. (Reporting by Michael Hogan and Markus Wacket; Editing by William Hardy)Keywords: GERMANY METALS/AID)