Official Joumél of the European Communities 27. 6. 92 No L 172/76 (Acts whose publication is not obligatory) COMMISSION COMMISSION DECISION of 25 March 1992 on aid granted by Spain to Industrias Mediterraneas de la Piel SA (Imepiel) (Only the Spanish text is authentic) (92/318/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 : Imepiel was incorporated in 1882 by the Segarra family who owned and managed the company until its acquisi- tion to stave off bankruptcy by the Spanish State in 1976. At this date the Spanish State, through the Property Office of the Ministery of Economic Affairs (Patrimonio del Estado), acquired 99,94 % of the capital, the other investors being the Caja de Ahorros de Valencia and the Caja de Ahorros de Castellon. The company manufactures and sells footwear produced from its own preparation of hides (the bulk of which are used and not resold) and from rubber, a purely inter- mediate product, which is employed to manufacture the soles. Its premises are located in Vall d’'Ux6, in the Castellén province, a town of 27 000 inhabitants 45 km to the north of Valencia, 26 km from Castellén and 15 km from Sagunto, a town which has suffered recently due to the rationalization of the steel industry. The company’s premises extend to 150 000 m? with buildings occupying some 100 000 m? of this. The company expanded during the post-war years diversi- fying into complementary activities such as glove making and farming. Since its acquisition by the State such ancil- lary activities have been eliminated. Despite this the company has always been a leading Spanish footwear manufacturer having the largest workforce and highest production capacity located on one site. However, since rationalization, cuts have been made resulting in a reduc- tion in the workforce from 3 146 in 1976 to 1457 in 1988. Throughout the period of public ownership the company has, in general, incurred operating losses each year. Over the 10 years to 1987 these amounted to Pta 12700 million and a series of capital injections were made to cover these losses. In addition, publicly-funded capital investment expenditure has been incurred in an attempt to modernize the factory. Faced with continuing losses the majority shareholder commissioned a viability plan in the mid 1980s which foresaw a reduction in capacity due to redundancies; capital injections (1987 : Pta 1400 million, 1988 : Pta 1 929 million) ; a managerial shakeup and a reassessment of markets and products. II As a result of press reports in December 1987 the Commission learned that the State authorities had prepared a rescue plan for the company and had, allegedly, granted a capital injection amounting to Pta 1 400 million to cover trading losses in respect of 1987.