KEM ONE confident in the strength of the case presented to th EC

In December 2013 the Commercial Court of Lyon officially approved the takeover of KEM ONE by French industrialist Alain de Krassny, with the support of investment firm Open Gate Capital.
The rescue plan validated by the Court is mainly financed by private sources, in the form of trade receivables and debt write-offs, in addition to significant internal measures to improve performance.
The rescue plan also provides for the following public support measures:

• A €30 millionFonds de développement économique et social(FDES) [Economic and Social Development Fund] loan.
• A €15 million investment subsidy.
• And an €80 million repayable advance for the part-funding of the electrolysis conversion project at Lavera.

KEM ONE’s rescue plan also entails private financing resources, the renegotiation of raw material procurement contracts at the end of 2013, and the implementation of internal initiatives on the various sites.

Ever since KEM ONE’s takeover, discussions have been ongoing between the management of KEM ONE and the State agencies in order to prepare the notification of the various measures to the European Commission, and to ensure compliance of these measures with European regulations on State aid. Notification was sent to the Commission the 31st of July 2014.

To date, payment of these financing measures has yet to take place. Nevertheless, these financing packages remain key to ensure the execution of the Lavera electrolysis conversion project as well as KEM ONE’s turnaround.

“It is not at all unusual for the European Commission to open an in-depth enquiry in a case of this magnitude and we were expecting it, commented Alain de Krassny, KEM ONE Chairman. I am personally committed to the recovery of this company, the levers of which we have clearly identified, and I am convinced of the company’s long-term viability and confident in the strength of the case we have submitted.”