70 years old MBF Aluminium foundry rescued for a limited time, the region collectively votes for aid of €500,000
On 26th April 2021, located in the eastern region of France, Burgundy-Franche-Comté’s Regional Council held an unprecedented standing committee meet, organized over videoconferencing, where the exclusive resolution of this committee was to extend rescue aid for the MBF Aluminium in Saint-Claude.
The 70 years old foundry, MBF in Haut-Jura is now confronting a plunge in production due to the shrink in the heat engine market and the Covid-19 pandemic, which is hitting hard on the automotive sector.
The current owner’s financial and administrative management has steered to the drying up of the organization’s treasury and now it is being placed in compulsory liquidation on 27th April 2021 by the commercial court.
The situation is gloomy, as the future of the 284 employees hangs on the takeover by a new owner.
Marie-Guite Dufay, the President of the region mentioned the fact that this aid must give a period of a few additional weeks to entitle a buyer to submit a serious offer.
She also added: “The funding of €500,000 voted on 26th April 2021 will be strictly intended for the payment of salaries.”
To avert the shutdown of the city's first private employer, the region is enacting this exceptional step; otherwise, it would have serious social and economic consequences for the whole of this territory.
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