PARIS (Reuters) -France’s Europlasma said on Friday its offer for a foundry in Brittany, formerly owned by automaker Renault, had been accepted by a court overseeing the insolvent plant, and that it would diversify production into the defence sector and other industries.
WHY IT’S IMPORTANT
The decision comes as Europe scrambles to ramp up production of tanks and weapons in response to U.S. President Donald Trump’s demands that it takes care of its own defences.
It also follows slowing demand in the car industry, driven in part by a transition to electric vehicles that require fewer parts. The sector has shed almost 28,000 jobs over the last five years in France, or 10% of all employees, official data shows.
WHAT’S NEXT
The takeover of the plant is effective from May 1, and will save 266 jobs at the site, said the foundry in a statement.
Europlasma has said it will retool the factory to make mortar shell casings, scaling up in a few years to become a major manufacturer for Europe.
KEY QUOTES
The foundry is “opening a new page in its history”, said CEO Jerome Dupont.
“Our project allows us to preserve valuable know-how as well as a high-performance industrial tool. It restores industrial visibility by basing the turnaround on accelerated diversification in the field of defence and structural diversification in the agricultural and railway sectors in particular,” said Europlasma CEO Jerome Garnache-Creuillot.
(Reporting by Dominique PattonEditing by Mark Potter)
