Kem One Situation: Arkema Clarification
COLOMBES, France -- March 27, 2013
The Lyon commercial court has decided to open insolvency proceedings with
continuation of activities for a six-month observation period against the
company Kem One SAS, corresponding to the upstream part (chlorine / caustic
soda electrolysis and PVC production) of the various businesses sold by Arkema
to the Klesch Group.
Arkema points out that the divestment of the vinyl activities to the Klesch
Group, finalized on July 2 2012, concerned a comprehensive industrial package
coherent from an economic point of view, from upstream (chlorine / caustic
soda electrolysis and PVC production) to downstream (PVC converting into
compounds, pipes and profiles). Maintaining this integration was a key factor
of Kem One’s future success.
The Kem One group had a robust balance sheet at the time of the divestment
(without any debt, a €100 million cash contribution, and many guarantees), and
the Klesch Group made a commitment to develop a financing plan adapted to the
needs of Kem One as from July 2012.
Arkema points out that the situation created today results from a unilateral
act by the Klesch Group which has decided to split up the upstream (Kem One
SAS) and downstream (Kem One Innovative Vinyls SAS) activities and not to put
in place the contemplated funding and guarantees.
Arkema therefore expects that these insolvency proceedings will help clarify
the reasons for the current situation (operation of the plants, management of
the Lavéra steamcracker force majeure event, evolution of margins and
volumes), and trusts that they will also help ensure without delay that the
financial resources made available to Kem One by Arkema have been used in
accordance with their corporate purpose.
Arkema points out that the sale of the vinyl activities to the Klesch Group in
July 2012 was completed in full transparency, in full regularity and in full
compliance with the standard practices for this type of transactions, and is
perfectly confident in its ability to demonstrate the same.
Finally, Arkema points out that its exposure to Kem One SAS as at 31 December
2012, without any increase since, amounts to €125 million in total,
corresponding to €65 million in receivables and €60 million in guarantees
granted to third parties.
A global chemical company and France’s leading chemicals producer, Arkema is
building the future of the chemical industry every day. Deploying a
responsible, innovation-based approach, we produce state-of-the-art specialty
chemicals that provide customers with practical solutions to such challenges
as climate change, access to drinking water, the future of energy, fossil fuel
preservation and the need for lighter materials. With operations in more than
40 countries, some 14,000 employees and 10 research centers, Arkema generates
annual revenue of €6.4 billion, and holds leadership positions in all its
markets with a portfolio of internationally recognized brands.
Sophie Fouillat, +33 1 49 00 86 37
Jérome Raphanaud, +33 1 49 00 72 07
Gilles Galinier, +33 1 49 00 70 07
Press spacebar to pause and continue. Press esc to stop.