Brussels, 16/01/2002 (Agence Europe) - The Commission has decided to open a formal investigation procedure against aid of EUR 92.71 million that Germany plans to pay to Capro Schwedt GmbH in order to support an investment project worth a total of EUR 331.11 million. Aid intensity thus rises to 28% of overall cost. The project is aimed at creating a new caprolactam-production complex. Caprolactam is an intermediary product used in the production of synthetic fibres. The project would have the participation of three other companies in the town of Schwedt (Brandenburg). It was notified by the German authorities in August 2001, according to the multisectoral framework for large investment projects. After a preliminary assessment, the Commission fears the aid may not be compatible. The problem mainly lies in the incomplete definition of the project, the three participant companies only being "project companies" leaving many questions unanswered, mainly with regards total and real investment spending and the number of direct jobs that would be created. This last point is taken directly into account for determining the intensity of aid to be allocated to the project. Another problem is linked to the fact that the project could be granted additional aid from the public infrastructure company. It is indeed not clear whether the infrastructure to be built is company oriented or not going beyond what would be normal in a single company project; nor whether the use of such infrastructure would be paid for at market prices.