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AL CIRCLE

MBF Aluminum in France could lose 150 jobs: DGE

EDITED BY : 3MINS READ

MBF Aluminum, based at Eastern France, in the heart of the Jura Mountains in Saint-Claude, is recognized as one of the European specialists in the injection moulding of aluminium parts for the automotive sector, could see its workforce reduced by half, if it is believed that the recommendations included in a study of the automobile foundry in France, commissioned by the General Directorate of Enterprises (DGE), at the service of the Ministry of the Economy and Finance. This report was delivered in June 2020 to all the players in the sector, but also the various ministries responsible for industry and the economy.

MBF Aluminium to Lay-off 150 staffs

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For MBF Aluminium, the report points to the possibility of saving the company, but by saving only half of the workforce, which means total150 jobs could be lost.

The study in question, carried out by the German firm Roland Berger, is intended to analyse the potential of the French foundry sector, which represents a market in Europe of around € 50 billion. The prospects for production, investments but also the rescue of "risky jobs" are analysed.

There are jobs at risk, according to decision-makers, on the side of MBF Saint-Claude and the company is standing in a difficult situation. "Given the new production prospects and the commitments made by manufacturers (Renault and PSA) on manufacturing volumes, the company had to quickly invest in infrastructure and new means of production, but also in maintaining its production facilities. These investments made in recent years have created a significant debt for the company. This debt puts the company in great difficulty today “specifies Naïl Yalcin, Union Representative MBF Saint-Claude, confirming the possibility of seeing 150 jobs to disappear in MBF.

MBF Aluminium to lay-off 150 staffs

The Union Representative criticizes the strategy implemented for decades in the automotive sector.

He analyses: "Today we find ourselves with subcontractors who are subject to the decisions of car manufacturers.”

The latter points to three culprits: the management of MBF, the builders who do not respect their commitments and the State which does not come to support French companies in the sector, as it claims.

The union representative continued: "The last straw is that the DGE, therefore the Ministry of Finance, has commissioned a study on the restructuring of the foundry sector to consolidate this sector and avoid legal redress. This study does not mean that job cuts have been recorded at MBF, but it is nonetheless a study on which the Ministry of Finance is looking a lot. We are fighting so that other choices are made."

MBF Aluminium to lay-off 150 staffs

Adeline Munarolo, Director Général chez MBF Aluminum explains: "We have shown that our industrial project was reliable. There was already an audit in November 2019 which proved that we had an industrial future in automotive subcontracting in France.  The manufacturers had committed to volumes, but at the same time, my contact at the DGE informs me that there will be a restructuring of the sector by the end of 2020.”

MBF Aluminium Chief condemns the attitude of car manufacturers and that of Finance Ministry, as it never hits the point on the table to force manufacturers to fulfil their commitments.

"At a time when all the ministers are talking about the reindustrialisation of France, we are not being helped. We have no state aid, we have the right to nothing" concludes Adeline Munarolo, while specifying her desire to assign Renault, one of the main customers of MBF, to court for breach of these contracts and volume commitments.

Alcircle Presents Global Aluminium EXPO 2020

Note to readers: AlCircle brings two-day event for aluminium industry players. We look forward to meeting you virtually at “Global Aluminium Expo 2020”on October 6-7, 2020. For registration, visit www.alcircleevents.com

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EDITED BY : 3MINS READ

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