Commission Decision (EU) 2016/449 of 28 July 2015 on State aid SA.38544 2014/C (e... (32016D0449)
Commission Decision (EU) 2016/449 of 28 July 2015 on State aid SA.38544 2014/C (ex 2014/N) which France is planning to implement in favour of Kem One (notified under document C(2015) 5169) (Text with EEA relevance)
- COMMISSION DECISION (EU) 2016/449
- of 28 July 2015
- on State aid SA.38544 2014/C (ex 2014/N) which France is planning to implement in favour of Kem One
- (notified under document C(2015) 5169)
- (Only the French version is authentic)
- (Text with EEA relevance)
- 1.
- PROCEDURE
- 2.
- BACKGROUND
- 2.1. THE BENEFICIARY: KEM ONE
- Diagram 1
- Structure of the Kem One group before the takeover
- Diagram 2
- Kem One activities in the PVC production chain
- 2.2. THE DIFFICULTIES ENCOUNTERED BY KEM ONE
- 2.2.1.
- Kem One's structural handicaps
- 2.2.1.1.
- The vertical disintegration of the ethylene chain
- 2.2.1.2.
- The heart of the production process (electrolysis) is dated and underperforming
- 2.2.1.3.
- High production costs
- 2.2.1.4.
- A commercial policy too geared to southern Europe
- 2.2.2.
- Kem One's financial difficulties
- 2.2.3.
- Insolvency and the opening of the court-supervised administration procedure
- 2.3. DESCRIPTION OF THE PUBLIC SUPPORT MEASURES
- 2.3.1.
- The FDES loan (EUR 30 million)
- 2.3.2.
- The grant (EUR 15 million) and repayable advances (EUR 80 million)
- 2.3.3.
- Possible write-off of tax and social security debts
- 2.4. KEM ONE'S RESTRUCTURING PLAN
- 2.4.1.
- The planned measures
- 2.4.1.1.
- Industrial measures: Modernisation of the production process, in particular the electrolysis cells at Lavéra
- 2.4.1.2.
- Commercial measures: reorientation of commercial policy towards value-added markets
- 2.4.1.3.
- Financial measures: reduction in structural costs
- 2.4.2.
- Estimate of restructuring costs and financing of the restructuring plan
- 2.4.3.
- Kem One's business plan
- 3.
- DOUBTS RAISED IN THE OPENING DECISION
- 3.1. CLASSIFICATION AS STATE AID
- 3.1.1.
- FDES loan
- 3.1.1.1.
- Value of collateral
- 3.1.1.2.
- Level of remuneration of the loan
- 3.1.2.
- Grant and repayable advances
- 3.1.3.
- Possible write-off of social security and tax debts
- 3.2. COMPATIBILITY ASSESSMENT
- 3.2.1.
- Restoration of Kem One's long-term viability
- 3.2.2.
- Prevention of distortion of competition
- 3.2.3.
- Aid limited to the minimum
- 4.
- RESPONSE BY FRANCE TO THE OPENING DECISION
- 4.1. ON THE CLASSIFICATION AS STATE AID
- 4.1.1.
- FDES loan
- 4.1.1.1.
- Value of collateral
- 4.1.1.2.
- Level of remuneration
- 4.1.1.3.
- Amount of aid
- 4.1.2.
- Grant and repayable advances
- 4.1.3.
- Possible write-off of tax and social security debts
- 4.2. COMPATIBILITY
- 4.2.1.
- Restoration of viability
- 4.2.2.
- The company's own contribution
- 5.
- COMMENTS BY INTERESTED THIRD PARTIES AND OBSERVATIONS BY FRANCE
- 5.1. COMMENTS BY INTERESTED THIRD PARTIES
- 5.1.1.
- Comments by Ineos
- 5.1.1.1.
- Amount of State aid and own contribution by Kem One
- 5.1.1.2.
- Restructuring plan
- 5.1.1.3.
- Compensatory measures
- 5.1.2.
- Comments by anonymous undertaking 1
- 5.1.2.1.
- Justification for State aid
- 5.1.2.2.
- Amount of State aid
- 5.1.2.3.
- Compensatory measures
- 5.1.3.
- Comments by Arkema
- 5.1.4.
- Comments by Vestolit
- 5.1.5.
- Comments by the ECVM
- 5.1.6.
- Comments by anonymous undertaking 2
- 5.2. OBSERVATIONS BY FRANCE
- 5.2.1.1.
- Classification of the measures as aid
- 5.2.1.2.
- Compatibility of the measures with the internal market
- 6.
- ASSESSMENT OF THE AID MEASURES
- 6.1. ASSESSMENT OF THE PRESENCE OF AID WITHIN THE MEANING OF ARTICLE 107(1) TFEU
- 6.1.1.
- Involvement of State resources and imputability to the State
- 6.1.2.
- Selectivity
- 6.1.3.
- Presence of an economic advantage
- 6.1.3.1.
- The FDES loan (EUR 30 million)
- 6.1.3.2.
- The grant (EUR 15 million) and repayable advances (EUR 80 million)
- 6.1.3.3.
- Possible write-off of tax and social security debts
- 6.1.4.
- Effect on competition and trade between Member States
- 6.1.5.
- Conclusion with regard to the presence of aid within the meaning of Article 107(1) TFEU
- 6.2. ASSESSMENT OF THE COMPATIBILITY OF THE MEASURES WITH THE APPLICABLE STATE AID RULES
- 6.2.1.
- Applicable legal basis
- 6.2.2.
- Kem One's eligibility for restructuring aid
- 6.2.3.
- Restoration of long-term viability
- 6.2.3.1.
- On the restructuring costs
- 6.2.3.2.
- On the duration of the restructuring plan
- 6.2.3.3.
- On whether the scenarios for the return to viability are realistic
- 6.2.4.
- Avoidance of undue distortions of competition
- 6.2.4.1.
- Divestment of assets is not an appropriate compensatory measure in this instance
- 6.2.4.2.
- No long-term structural overcapacity in the relevant market
- 6.2.4.3.
- Compensatory measures deemed appropriate by the Commission
- 6.2.4.4.
- Monitoring and six-monthly reports
- 6.2.5.
- Aid limited to the minimum: real contribution, free of aid
- 6.2.6.
- ‘One time, last time’ principle
- 7.
- CONCLUSION
- Article 1
- Article 2
- Article 3
- Article 4
- Article 5
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