French cement maker Lafarge went on trial Tuesday over charges that its Syrian subsidiary financed terrorist groups and violated European Union sanctions in order to keep a plant operational during the war on the country.

The case marks a historic first in France, as it is the first time a company has faced trial for terrorism financing.

Investigative judges claim that between 2013 and September 2014, Lafarge paid approximately €5 million to armed groups, including ISIS and the al-Nusra Front, an al-Qaeda affiliate, both designated as terrorist organizations by the EU.

Individuals standing trial too

Lafarge, which merged with Swiss-based Holcim in 2015, has been under investigation by France’s anti-terrorism prosecutor’s office since 2017. Eight former executives are also standing trial and could face up to ten years in prison if found guilty.

In a statement issued on the opening day of the trial, Lafarge said the allegations concern “actions that occurred more than a decade ago and were in flagrant violation of Lafarge SA's Code of Conduct.”

The company emphasized that none of the individuals currently facing trial remain with Lafarge or any of its affiliated entities, adding that it is addressing the matter responsibly through the legal process.

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Related case in the United States

Lafarge has already admitted in a separate US case in 2022 that it paid $6 million to ISIS and the al-Nusra Front. These payments were allegedly made to ensure safe passage for employees, suppliers, and customers through checkpoints.

The company agreed to pay $778 million in fines and forfeiture as part of a plea deal with US authorities.

In France, however, any fines are expected to be significantly lower.

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Syrian plant operations amid war

The allegations stem from Lafarge's efforts to continue operating its Jalabiya cement plant in northern Syria. The plant, acquired in 2008 for $680 million, began operations in 2010, just months before the outbreak of the war on Syria.

Employees were based in Manbij, located on the western bank of the Euphrates River. According to investigators, €3 million was allegedly paid to armed groups to secure safe passage through checkpoints, and another €1.9 million was used to purchase materials from quarries under IS control.

Lafarge is also under investigation for complicity in crimes against humanity, in relation to the measures it took to keep its operations running during the war in Syria.

The trial is expected to continue until December 16.