Following an in-depth investigation, the European Commission has taken the view that the public aid measures in support of Kem One SAS, a chlorochemicals and PVC producer, are compatible with the EU’s State aid rules, in particular the rules on State aid for rescuing and restructuring firms in difficulty. The Commission considered that the restructuring plan for Kem One will allow the company to become viable again in the long term without needing further state support, and without unduly distorting competition in the Single Market...
In July 2014, France notified a restructuring plan involving three types of support measure for Kem One: (i) a loan of €30 million from the Economic and Social Development Fund (‘FDES’), (ii) a grant of €15 million and (iii) repayable advances of €80 million. France also referred to a possible write-off of social security and tax debts.
The Commission opened an in-depth investigation in October 2014 in order to determine whether or not the measures constituted State aid. Furthermore, the Commission had concerns about the compatibility of all the public support measures with the requirements of the rules on State aid to firms in difficulty, in particular whether the plan could restore Kem One’s long-term viability and whether the company was making an adequate contribution to the cost of restructuring.During its in-depth investigation, the Commission confirmed that the notified measures constituted State aid conferring an economic advantage on Kem One because they had not been granted on the same terms as a private lender would have required. However, the Commission found the aid to be compatible with the EU’s State aid rules. On the basis of the information gathered during the in-depth investigation, the Commission’s doubts about the restructuring plan notified by France were dispelled. The Commission therefore concluded that the restructuring plan was an appropriate response to Kem One’s difficulties and provided for a sufficient own contribution by the undertaking. The French authorities are required to regularly submit a monitoring report to the European Commission to ensure that the measures are implemented in full and in line with the decision.
