PVC Producer Kem One Says Business is Back to Normal
In an update on its current business situation, insolvent PVC producer Kem One - the spun-off Arkema business - said production has returned to near-normal levels at all of its plants, following the resumption of ethylene supply.
As part of a compromise agreement in the long-running dispute between the company's former owner Arkema and its current owner, Swiss-based Klesch, over the state of the business's finances at the time of acquisition a year ago, the insolvency administrator asked Arkema's parent, French oil and petrochemical producer Total, to continue ethylene supply at a rebate against the contract reference price.
Noting that the insolvency proceedings initially due to be concluded in mid-June are "on schedule," Kem One - without naming names - hinted that "several potential buyers" have shown interest in the company. Also without naming names, it added that the financial situation is improving, thanks to the support pledged for the duration of the proceedings.
Arkema had promised the insolvency administrator and the French government to contribute €68 million to keep the PVC producer afloat until a new owner has been found. In April, reports said €105 million was regarded as necessary to keep production going for a six-month period.
Kem One also praised its customers for their confidence and employees for their dedication. The entire workforce is committed not only to maintaining a high level of customer service but also to finding sustainable solutions for the group, it said. Earlier this year, the company's unions made headlines by setting tires afire in front of production facilities and corporate headquarters.
