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By Rebecca Strong2022-01-10T09:40:00
Contargo will operate the container terminal in Valenciennes for a further 15 years
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The manufacturer of tubes for the energy industry is cutting 2,950 jobs
By Jean-Michel Bezat
Elisabeth Borne would probably have preferred another announcement two days after her appointment as the new French prime minister
a manufacturer of seamless tubes for the energy industry
at the presentation of its first quarter results that it is eliminating 2,950 jobs worldwide
with 65 at the Meudon (Hauts-de-Seine) headquarters; 104 at its Saint-Saulve (Nord) plant
which will close; and under 100 at Aulnoye-Aymeries
which will keep its two plants and become the group's global R&D center
The remaining French layoffs are at the Valenciennes service center
which is 41% owned by the American Apollo and SVPGlobal funds
believes that the loss of liquidity had become unacceptable and was threatening its survival
The cuts will be spread over 2022-2023 and the restructuring will
increase the gross operating surplus of 230 million euros per year
which will make it "stronger and more efficient." It had been losing 100 million euros EBITDA (earnings before interest
depreciation and amortization) a year for the past seven years in Germany
and soaring energy costs made any prospect of recovery unlikely
While the unions acknowledge that they had expected this plan
the announcement did not lessen the anger of the employees
who have been impacted by five redundancy plans in 10 years and have decided to fight for the best possible compensation
"Vallourec has had public money to make investments in Brazil and China
and it is France that suffers," Michaël Tison
representative for the CFDT union at Saint-Saulve
where 350 jobs had already been lost in February 2021 out of a total of 1,000 job cuts worldwide
take early retirement or be reassigned internally
Guillemot said that the others will benefit from "support," but didn't specify the terms or the financial scope
In the absence of a credible takeover by the employees of the site put up for sale in November
2,135 jobs will be cut and operations transferred to Brazil
Saint-Saulve no longer had any industrial purpose
since it provides finishing for products from across the Rhine
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[1] Vertical effects are studied when the transaction brings together players at different levels of the value chain (for example a producer who buys a distributor or vice versa): does the operation make it more difficult to access markets where the new entity is active for competitors
Can the operation allow the entity to oust competitors or penalize them by increasing their costs?