ARCHIVES HISTORIQUES
DELACOMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (80)432
Vol.1980/0152

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(80)432final
Brussels,23July1980
Commission report totheCouncil
ontheapplicationofCouncilRegulation (EEC)IT°2914/79of
20December1979oncommunityaidforindustrialrestructuring
andconversionoperationsintheman-madefibressector
(submittedpursuanttoarticle5ofthe
Regulation)
■■\ "-Ï\ '
;
C0M(80)43«N^nal

1--"ν
I.INTRODUCTION
1.On20December 1979theCounciladopted aRegulation (1)
onfinancial aidtoassisttheman-madefibresindustry ,
tofinance :' !
-iinvestments tohelpcreate/byotherundertakings ,in
I
ttheareasconcerned andinotherfieldsofactivity,
i . ■ ■
'newjobsintended primarilyforworkersmaderedun­
dantbythereduction ofproduction capacityorby
thetotalorpartial'closureofundertakings -operating
intheman-madefibressector (conversion investments )
-investments carriedoutbyindustrial .undertakings
.operating theman-madefibressectorforthepurpose
ofchangingtotypesofactivityotherthanthepro­
ductionofman-madefibresfortextilepurposes
(diversification investments );
■-investments carriedoutbysuchundertakings witha
viewtoreducingtheirproduction capacity (restructu­
ringinvestments ),.
2.Thefinancialaidprovidedfor intheaboveRegulation was
totaketheformofinvestment premiumsamounting to5.7%
,ofthefixedinvestment ;thisratecouldbeincreased to
9.5%wheretheinvestment wasundertaken intheleast-
favouredregionsorinregionsorareasparticularly af­
fectedbyrestructuring operations .
s ' /
3.Article 5oftheRegulationstipulatesthat,before
1July1980,theCommission shallsubmitareporttothe
EuropeanParliament andtheCouncilonitsapplication ,
alsocoveringtheaspectofreductionofproductioncapa­
city. '' ."■
(1)Regulation (EEC)No2914/79,0JNoL326
22December1979,p.36.

-2-
II.THESITUATION INTHEINDUSTRY ANDTHEREDUCTION OFPRODUCTION CAPACITY
Regulation (EEC)No2914/79isdesignedtohelpundertaki ngs
intheman-madefibres'industry ..toreducetheirproduction
capacity .
In1977xwhenthemainman-fibre producers intheCommunity
consulted withegchotherinordertoagreeonaconcerted
approachtoeliminating surpluscapacity,theirproduction
capacityforthemainfibresfortextileusewasofthe
orderof2250000tonnes (seetablebelow).
Thedevelopment planswhichtheyhadadoptedinprevious
yearswereintendedtoincreasethiscapacitytosome
2550000tonnesby1980.
Marketforecasts showedthattheseproducers mightachieve
salesofsome1700000tonnesin1981.Takinginto-account
thefactthat,overall,production unitsmustworkat85%
oftheirmaximumcapacity (iftheyaretobreakeven,it
becameclearthatproduction capacitycouldnotbeallowed
toexceed '1950000tonnesin1981.Thus,producers
hadnotonlytostoptheirextension projects,buthadto
cuttheircapacityinordertoimprovetheirprofitsitua-
tion.
Thisiswhattheyhavebeentryingtodosince'1978.'The
tablebelowshows'the resultsoftheireffortstoreduce
capacity,givingforeachtypeoffibretheproduction
capacityinSeptember 1977andinDecember 1979ofthose
producers (*)whichdecidedtotakethisaction.Forrefe-.
rence,thetablealsoshows'thetotalinstalled production
capacityintheEEC.
*)ANIC.,BAYER,COURTAULDS ,ENKA,FABELTA,
H0ECHST,ICI,M0NTEFIBRE ,RHONE-P0ULENC,
SIR,SNIA

-3-
CHANGESINPRODUCTION CAPACITYINTHEECC'
BETWEENSEPTEMBER1977ANDDECEMBER1979
IN1000TONNES
Typeof
fibreCapacity
1977
MainTotal
produ-(forre-
cersferencferenc©Capa
1979
Main
produ-
cerscity
Total
(forrefe
rence)Reduction by
themain
producers
between
1977and
1979
Continuous
polyamide
yarnfortex-
tiles
Continuous
polyamide
yarnfor
carpets
Continuous
polyester
yarnfortex-
tiles
Discontinuous
polyamide
fibre
Discontinuous
polyester
fibre
Discontinuous
acrylicfibre370 420295 320
120
383-
153
434
794219
433
181
500
960105
299
144
357
729195
355
180
410
90075
15
84
77
65
Total 2254 27131929 2360 325
Thistableclearlyshowsthatthemainproducers,whoseproduc­
tioncapacityaccountedformorethanthreequartersoftheto­
talin1977,havereducedtheircapacityforallthemaintex­
tilefibres,thereductiontotalling 325000tonnes.Takingall
producers together,thereduction hasbeenoftheorderof
350000tonnes.

4-
III.APPLICATION OFTHEREGULATION
1.Theprocedurefor-assessingtheseprojectsonthebasis
oftheirfinancial,economic,structural andsocialcharac­
teristicsenabledtheCommission toselectsixteenprojects.
'2.Communityaidtotals13982785EUA,brokendownasfollows:
-9conversionprojectsreceiving atotalof8036549EUA;
-5diversification projectsreceiving atotalof2913310EUA;
-2restructuring projects -receiving atotalof3032926EUA.
DetaiIsconcerningthesesixteenprojectsaregiveninthe
Annextothisreport.' \
3.Asaresultofgrantingtheassistance providedforinthe
Regulation inquestion :
theCommunity hascontributed totheimplementation of
projectsinvolving atotalinvestment of241694125EUA
andfixedinvestment of175132435EUA;theseprojects
willresultinthemaintenance orcreationof7108jobs.
57.57.oftheCommunityassistance hasbeenallocated
toconversionprojects,,whilethoseinvolvingdiversi­
ficationandrestructuring accountfor20.8%and21.7%
respectively ofthetotalassistance granted;
-theCommunity hascontributed totheeconomicrehabili­
tationoftheman-madefibresindustrybyhelpingto
createjobsinnewareasof'economicactivitywhere"
the.restructuring oftheindustryhasledtoredudan-
cies,byassistingundertakings intheman-madefibres
industrytoswitchtothemanufacture ofproductswith
amorecertainfutureandby'aidingcertainrestructuring
operations designedtosafeguardthefinancialequilibrium
ofthoseundertakings whichhave,carriedthemout.
x
Tenprojectsoutof.16.havereceivedfinancialaidin
thefortc''■.vestment ,premiums amountingto9.5%of
theinve-entastheyareundertaken intheleast
favoured .'ons.

ANNEX
DETAILSCONCERNING APPROVED BYTHECOMMISSION REGULATION (EEC)No2914/79
TITLEOF
PROJECT
Construction of
aunitforthe
productionof
pr6-orientated
yarn(POY)for
textileuse
Improvementof
texturised
textilfeyarn
finishingplant
Rationalisation
ofpolyamide-
yarnplant;
reinforcement
ofpolyamide
industrialfibre
andviscose-fibre
productionplant
Construction of
productionfaciliti(
forviscoseyarnin,
replacementofoldI
installations
■
.I
CONVERSIONPROJECTS jDIVERSIFICATION PROJECTSj1
RESTRUCTURING PROJECTS I
: : i
Totslinvest-
mentinEUAFixedin-
vestmentIn
EUACommuni­
tyaid
InEUA
INumber
ofjobs
created
or
nain-
tainedTotalFixed.Community Number'
Invest-invest-aidinofjobs
mentinDentEUA created
EUAinEUA or
naintainedlot.il|
invest-f
aentin
EUAFixedj
invest-j
jentin
:UACommunity
aidin
EUANumberof
jobscreated
ornaintained
j
2.444.988
iS2.444.988 ,139.364
/20
9.351.0068.064.170«9.6581.728
19.903.05816.299.918929.095.200;58.949.08428.065.0282.666.178 220

(Rationalisation
!ofp"rtofpplyamicis .
iysrnandoolysmide
(fibreproduction
Ipiantanddiversifi­
cationtohigh-tenacity
polyesterv~rn
'Construction of3
Ifîctoryforthe
(*3puf;ctureuf
■luet;.
t;e<1.:■in.based
thetrans­
:caiand
electron':sectors
Constriction ofayard
forbuildingsorkboats
Conversionoffacilities
forthepackagingof
acrylicandpolyester
fibresafterproduction
Construction ofaplant
P;.hieingrubber
expoundsandhoses
forthecirculation
ofcoolingliquidsin
englno-
Construction ofa
phrntproducing
plasticcomponents
forthemotorvehicle
industry
Construction of»
plnntproducing
trisethylolpropane
*ndforsldehyda3.838.202
1.201.047
7.806.803
19.302.535
11.581.5212.487.882
943.879
5.747.866
14.155.192
8.578.904236.349
89.650
546.047
1.344.743
814.99635
40
166
250
6713.726.24710.522.0521.002.4451.090
3.860.5073.860.507 366.7481.941

Construction ofa
plantproducing
polyothy1one
andpolypropylane
film;forIndustri-,
aluse 15.828.078 12.396.5161.177.669 '135
/:- I
Rationalisation
ofthemanu­
factureofcellu­
loseacetateand
construction of
aunitforraanu-/
facturlngpolyure-
thnneforplastic
useT *
2.229.2/92.229.069127.069.
586II.'■
Reorientation of
elasticviscose
fibreproduction
towrdsnolynosic
viscosefibres,
6.930.5806.930.580395.043 18
Construction of»
factoryforproducin
braidingwirefor
tyres>-.·
36.827.151 33.901.6301.932.393 388I
Extensionof»
factorymaking
batteriesforcars27.9U.03918.477.2W 1.755.538 244Φ·.
I
!
lotais 126.7W.364 99.533.901 8.036.549 1.325
i
I52.140.170
\44.075.9992.913.310
■3.62262.809.59131.925.5353.032.9262.161