No L 112/58 Official Journal of the European Communities 3.5 94 COMMISSION DECISION of 12 April 1994 concerning aid to be granted by Spain to the public integrated steel company Corporacién de la Siderurgia Integral (Only the Spanish text is authentic) (94/258/ECSC) THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Coal and Steel Community, and in particular the first and second paragraphs of Article 95 thereof, Afte consulting the Consultative Committee and with the unanimous assent of the Council, Whereas : The Community steel industry is currently experiencing its most difficult period since the first half of the 1980s. This is due to the general slowdown in the economy, which has had a significant effect on industrial activities in general, and on the steel industry in particular, leading to a serious imbalance between supply and demand, accompanied by a collapse in prices. In addition, the international market generally has been weak : there is pressure from imports and there has been a trade dispute with the USA affecting substantial Community exports to that market. All of these factors have combined to aggra- vate the financial situation of almost all steel companies in the Community. II In April 1992, Spain notified the Commission of a plan to restructure the Spanish public integrated steel company Corporacién de la Siderurgia Integral (CSI) (incorporating Ensidesa and Altos Hornos de Vizcaya (AHV)) and the associated financing by which it intends to support this plan. The restructuring plan submitted, as subsequently revised, envisages that AHV and Ensidesa would cease to operate and their activities would be taken over by a new company, to whom their assets and certain liabilities would be transferred ; and includes a number of indus- trial, commercial, social and financial restructuring measures, which would be completed by the end of 1998. The plan provides for the definitive closure by the end of 1995 of all AHV’s steel-making facilities including the hot-strip mill at Ansio, which together with closures at Ensidesa’s plant will involve a total capacity reduction of 2,33 million tonnes (35 %) in pig iron, 1,423 million tonnes (20 %) in liquid steel and 2,3 million tonnes (50 %) in hot-rolled coil. ' A new company with majority private sector participation is envisaged to take forward a proposed investment in a compact-strip production unit at Sestao (with a capacity of 1 million tonnes), partially to replace the Ansio hot-strip mill. The plan envisages a reduction in the workforce of 10 347 persons from 24 489 in 1991 to 14142 in 1998, ie. a reduction of 42 %. The financing of the plan, as revised, includes aid elements that are incompatible with the ECSC Treaty and with the provisions of Commission Decision No 3855/ 91/ECSC (") (Steel Aid Code). According to the Commis- sion’s estimates this aid amounts to a maximum of Pta 437,8 billion, serving the following purposes : — a capital injection of up to a maximum of Pta 276,7 billion in the new company by the former public shareholders of AHV and Ensidesa, — social aid up to a maximum of Pta 54,519 billion, — up to a maximum of Pta 35,5 billion in the form of capital conversion of an INI credit for that amount to Ensidesa, — up to a maximum of Pta 9,4 billion to cover contin- gencies, — up to a maximum of Pta 61,654 billion in the form of loss compensation to cover additional operating losses and financial charges in 1992 and 1993 over and above those originally forecast in the plan, and reduced turnover arising from bringing forward the Ansio closure. Additional social aid up to a maximum of Pta 47,35 billion, is being authorized separately by the Commission as compatible with Article 4 (1) of Decision No 3855/91/ ECSC. () OJ No L 362, 31. 12. 1991, p. 7.