20. 6. 91 Officialy Journal of the European Communities No L 156/33 (Acts whose publication is not obligatory) COMMISSION COMMISSION DECISION of 17 December 1990 on aid granted by the German Government and the Government of the Land of Bavaria to the producer of polyamide and polypropylene yarns, Reinhold KG, situated in Selbitz ‘ (Only the German text is authentic) (91/304/EEC) THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Economic Community, and in particular the first subpara- graph of Article 93 (2) thereof, Having given notice to the parties concerned to submit their comments as provided for in the said Article 93, and having regard to those comments, ' Whereas : On 24 November 1989, the Permanent Representation of Germany notified a project of the German authorities to grant aid in the form of a subvention and a soft loan for the investments that the company Heinrich Reinhold KG (Reinhold) carried out in the years 1987 to 1989. Further information concerning the beneficiary and the aid was supplied, on request of the Commission, on 26 January 1990 and 28 February 1990. A further request for information concerning the date of payment of the DM 1,8 million soft loan was sent by the Commission on 26 November 1990. The German Government was informed that failing any answer to this request the date of 1 April 1989 would be assumed as the date from which the elements of aid of the soft loan took place. The German authorities did not answer this request. The notification concerned the applications submitted by Reinhold on 19 November 1987 and 9 March 1988 to the Federal Office for Trade and Industry, in respect of an extension of its plant in Selbitz involving an investment volume of DM 3 440 000 in the period from December 1987 to December 1988, for a 10 % grant (i.e. DM 344 000) under the Investment Premium Law (Tnvesti- tionszulagengesetz), approved by the Commission by letter of 7 December 1987. At the same time, a loan amounting to DM 1,8 million was granted from the budget of Bavaria under the Bavarian regional assistance programme (Bayerisches Regionales Forderprogramm), approved by the Commission by letter dated 27 December 1988 ; the loan has a duration of eight years, with a two-year grace period, at a 4 % interest rate. Taking into account the total amount of the investments, the net grant equivalent of the different aids is worth about 12,4 %. State aid to the synthetic fibres industry is subject to constraints, introduced in 1977, renewed every two years since then and most recently in 1989 (communication to the Member States of 6 July 1989). The production of Reinhold, namely yarns of polyamide and polypropylene, falls within the scope of the constraints {covering fibres and yarns for textiles up to July 1989 and for all end-uses from July 1989 on) which requires that all aid proposals, of whatever type, in favour of companies in the synthetic fibre and yarn sector have to be notified to the Commis- sion in sufficient time to submit its comments and, if necessary, initiate, in respect of the proposed measures, the procedure provided for in Article 93 (2) of the EEC Treaty.