The Commission has decided to terminate the proceedings under Article 93(2) in respect of aid for CNP, the public-sector petrochemicals company, initiated by decision of 30 October 1991.1 The aid in question amounts to ESC 274 billion (ECU 1.68 billion) and is intended to correct an unfavourable financial structure dating from the company's formation in 1982, i.e. prior to Portugal's accession. After Portugal joined the Community, the Portuguese authorities implemented a restructuring plan in order to adapt the company to the new market conditions. The plan was to have both technical and financial aspects. On the technical side, the company made adjustments in terms of productive capacity and manpower rationalization. On the financial side, the present reorganization plan is the culmination of a multi-stage process and is designed solely to correct the company's structural problems, which date from before Portugal's accession. The financial restructuring will enable the Portuguese authorities to plan the company's privatization under more favourable conditions. Moreover, the company is of major importance in social and regional terms. It is located at Sines in the Province of Alentejo, which must be regarded as one of the least-favoured regions in Portugal and in the Community (the region of Alentejo - NUTS Level II). * * * 1 See press release IP(91)954.
