ALVANCE, owner of the Poitou iron foundry and member of the GFG Alliance, will set up a working group to study the possibilities of repurposing the Poitou iron foundry. ALVANCE will invite industry experts, political stakeholders and trade union representatives to participate in the group whose task will be to identify the potential for conversion of the foundry in order to move the company forward and avoid its closure.
Since its acquisition in 2019, the foundry has suffered from a steady decline in orders from its main customer, which is itself facing a very difficult automotive market. The decline in the diesel car market and the Covid19 pandemic have had unpredictable repercussions on the sector in terms of duration and magnitude – the combined effect was a reduction of almost 75% in orders at the site.
Although discussions with the foundry’s customer are ongoing, the lack of visibility on future orders and the continuing poor outlook for diesel engines means that the company will not be able to continue in its current structure for more than three to four months.
It is in this context that ALVANCE has taken the decision to set up a working group bringing together experts from industry, local and national authorities and the foundry’s trade unions to study how the site could be converted to create new products for the evolving automotive sector and, in so doing, preserve the workforce as far as possible and the industrial skills and know-how they bring with them.
Sanjeev Gupta, Executive Chairman of GFG Alliance, said: “GFG Alliance has built a global business by taking on industrial sites that others have turned their backs on. We have done this because we believe in the value of the industry to society and the skills of the people who work at these sites. We believe that this industrial heritage must be preserved for the benefit of our generation and those to come. That’s why we are establishing this task force.
Visit the ALVANCE Aluminium Group website to read the full media release