Argenteuil, France – Sempertrans France Belting Technology (SFBT), part of Semperit AG, has reached an agreement with employees over the the previously-announced closure of its production plant in Argenteuil.
In a 13 Oct statement, the Austrian parent group said the agreement would be submitted to the French labour authorities for approval, which is expected in two weeks.
“With the mandatory special consultation and negotiation procedure being almost completed, the project is now going to enter the implementation phase. This will allow SFBT to start deploying all the accompanying measures for the employees as provided for by French law,” Semperit said.
Semperit announced in early July that it was considering the complete shutdown of its Argenteuil plant as part of its measures to save costs and restructure.
The company started consultation and negotiation with the representatives of the affected French employees on 30 June.
The shutdown would impact 64 employees at the production site, which produces special conveyor belts. The subsidiary’s office in Levallois, France, will not be affected by the measures.
Speaking to ERJ at the time, Semperit Group communications manager Martina Buechele said that the decline in global conveyor market, mining industry slowdown had prompted the restructuring measures.
Buechele also cited other issues such as tough competition, pressure on prices and the significant impact of raw material price volatility on margins as contributors to the decision.
According to the Semperit spokeswoman, under the new restructuring plan, Semperit aims to consolidate its production into one site in each of its regions, with its manufacturing plant in Poland, Belchatow producing for the European region and strategic supply.
Other Sempertrans production sites are based in India and China, which manufacture conveyor belts both for domestic use and export.
No other activity of the Semperit Group in France is affected by these measures.
The company expects the closure to have a €10 million impact in terms of exceptional charges and one-off expenses for the Semperit group.