IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
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Inception date: 28 Jul 2015 | Removal date: open ended
Still in force

Financial grant

 On 28 July 2015, the European Commission approved state aid worth 125 million EUR to French chlorochemicals and PVC producer Kem One SAS.
 
The state aid includes a loan of 30 million EUR from the Economic and Social Development Fund, a grant of 15 million EUR and repayable advances worth 80 million EUR. As the company is currently facing financial difficulties, the aid may also include a write-off of tax debts and social security payments.
 
The Commission started a procedure back in October 2014 to assess if the state aid at hand was compatible with the single market. The EC concluded in its assessment that the aid does constitute an economic advantage to the entity (art. 212, letter from the EC to France, 28.07.2015) and "threatens to distort competition between operators in the PVC sector and in the market for the production of chlorine and caustic soda" (art. 238; own translation). However, it argued the restructuring plan for Kem One SAS was satisfactory and the company provided a sufficient contribution to the restructuring.
 
The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets, and from foreign subsidiaries.
 

AFFECTED COUNTRIES

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TABLE
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AFFECTED SECTORS AND PRODUCTS

342 Basic inorganic chemicals n.e.c.
2827 Chlorides, chloride oxides and chloride hydroxides; bromides and bromide oxides; iodides and iodide oxides.
282720 Calcium chloride
282731 Of magnesium
282732 Of aluminium
282739 Other
282751 Bromides of sodium or of potassium
282759 Other
282760 Iodides and iodide oxides
2828 Hypochlorites; commercial calcium hypochlorite; chlorites; hypobromites.
282810 Commercial calcium hypochlorite and other calcium hypochlorites
282890 Other
2829 Chlorates and perchlorates; bromates and perbromates; iodates and periodates.
282911 Of sodium
282990 Other
346 Fertilizers & pesticides
2827 Chlorides, chloride oxides and chloride hydroxides; bromides and bromide oxides; iodides and iodide oxides.
282710 Ammonium chloride

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