Kem One - comment

No sign of life in the European PVC markets with Kem One experiencing lower volumes than last year, and demand in Europe and the export market remains soft. Operationally, Kem One restarted production in Fos, albeit with a one-month delay. No point quoting leverage, with EBITDA for the quarter at €4m and LTM €9m. Cash is €51m plus €80m availability from the new facility. The question remains whether this is sufficient for the business while it waits for a recovery in the PVC market. We fear not.