The European Commission is allowing Kem One to continue its investments


By agreeing to the support measures from the French government, the European Commission is allowing KEM ONE to continue the implementation of its investment plan.

Ten months after an in-depth investigation was launched, the European Commission recently approved the support measures from the French government as part of the recovery plan financing for KEM ONE. These measures consist of:

  • a loan from the French Economic and Social Development Fund (Fonds de développement économique et social, FDES), totalling 30 million euros;
  • a reimbursable advance payment of 80 million euros, to be used as partial financing for the Lavéra electrolysis conversion;
  • and an investment subsidy of 15 million euros.

In recent months, the KEM ONE management, with the support of the government and State services, has made every possible effort to show the relevance of its industrial project and the importance of preserving the 3rd-largest European producer of PVC in the competitive landscape.

"This is excellent news", said a delighted Alain de Krassny, President of KEM ONE."I never doubted the strengths of our case. Moreover, the marked improvement of our financial results shows that we are on the right track and that all efforts undertaken within the company are starting to bear fruit." 

While waiting for the green light from Brussels, KEM ONE has not delayed in making investments on its own. The company has received new boilers for generating steam at its Balan site (Ain,France) and has initiated the Lavéra (Bouches-du-Rhône,France) electrolysis conversion project, in which it has already invested 45 million euros. The availability of loans will allow KEM ONE to continue its investment plan in full confidence.

This decision comes at the right time, as Alain de Krassny and OpenGate Capital have just finalised an agreement with Gary Klesch, a former shareholder in the company, for the sale of the chain's downstream activities (PVC compounds, profiles and tubes).