French cement manufacturer Lafarge, a subsidiary of Holcim, is set to face trial in a French court on serious charges of financing terrorism and breaching European sanctions to maintain operations at its Syrian plant.

The decision follows a lengthy investigation launched in 2016 by France’s anti-terrorism prosecutor, marking one of the most significant corporate criminal cases in French legal history.
Meanwhile, investigative judges in Paris gave the order Lafarge face trial on Wednesday.
Reuters reports that on Thursday, Lafarge confirmed it had acknowledged the judges’ decision.

Following the announcement, shares of Holcim, Lafarge’s parent company, dropped nearly 2% in late Wednesday trading before slightly recovering to close down 0.7%.
The ongoing investigation focuses on allegations that Lafarge was complicit in crimes against humanity as part of a broader inquiry into the company’s operations in Syria after the outbreak of war in 2011.

The complaint was brought forth by the anti-corruption group Sherpa.

In January, France’s highest court rejected Lafarge’s request to dismiss the charges of complicity in crimes against humanity from the investigation.
The allegations also include charges related to a European ban on financial or commercial ties with Islamist militant groups, including Islamic State and Al-Nusra, according to Sherpa.

However, in a separate investigation in the United States, Lafarge admitted in 2022 that its Syrian subsidiary paid groups designated as terrorists by Washington, including Islamic State, to ensure the safety of staff at its plant amid the ongoing civil war.