30. 6. 92 Official Journal of the European Communities No L 176/57 (Acts whose publication is not obligatory) COMMISSION COMMISSION DECISION of 25 March 1992 concerning aid awarded by Spain to Intelhorce SA (ex Industrias Textiles de Guadalhorce, SA), now called GTE General Textil Espafia, SA, a State-owned producer of cotton textiles (Only the Spanish text is authentic) (92/321/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 in accordance with the above Article to interested parties to submit their comments and having regard to those comments, Whetreas : Industrias Textiles de Guadalhorce, SA — now called GTE General Textil Espafia, SA — was established in 1957 by the ‘Instituto Nacional de Industria (INI), a Spanish State-owned holding agency. The company’s authorized activities consist of the production and marke- ting of cotton products. The firm owns a sole production plant situated in a suburb at § km from the town of -Malaga (Andalusia). Its production activities integrate vertically : spinning, weaving, finishing and clothing of cotton goods. The company’s head office is annexed to the plant. The company has also a commercial delegation in Barcelona. In 1965 the Spanish authorities decided to suspend the ordinary process of investment in the company as a result of exceptional political and economic circumstances. This fact along with a bad industrial planning made it suffer from serious financial instabilities that kept the company in the red until 1971. In 1972, taking advantage of the favourable situation in the cotton textiles sector, the company was privatized. The new owners initiated a restructuring programme with replacements of weaving equipment and an increase in workforce that reached 3 277 people. During 1972 and 1973 the company made profits. After 1974 the deterioration of the general economic situation and, notably, the crisis in the cotton textiles industry broke off the firm’s recovery. The company’s competitive position worsened and its negative results accelerated as a consequence of an inadequate policy of modernization. In 1975 Industrias Textiles de Guadalhorce changed its name to Intelhorce, SA. At that time, Spain was in the midst of a delicate period of political transition and this, together with the economic and social situation in the area and the large number of jobs provided by the company, meant that, in 1980, the State had to take control of it once more through the State-owned holding agency, ‘Patrimonio del Estado’. The Spanish Government since launched a restructuring plan designed to secure the company’s viabi- lity. Thus, between 1980 and 1985 the company carried out considerable fixed investment totalling over Pta 6 000 million, the workforce was gradually reduced from 2 785 people in 1980 to 2094 by the end of 1985 and sales increased to a top in 1985 of over Pta 9 400 million. Despite these efforts, Intelhorce continued making losses.