Hubert Paris, member of the Vallourec executive committee in charge of the Europe scope and in particular France, explains the reasons which led his group to plan the closure of the huge Déville-lès-Rouen plant, specializing in the heat treatment of tubes without welding for the petroleum industry.
Vallourec announced the closure of the Déville-lès-Rouen plant. What are the reasons ?
Hubert Paris : “This is the group’s situation. 70% of its turnover comes from the oil and gas sector. This market has already experienced a huge crisis in 2016, and Vallourec has put in place a recovery plan to return to positive gross operating income and cash flow. We were on this trajectory, but since the end of 2019, a new oil crisis intensified by the health crisis has occurred. Remember: Oil prices were negative at the start of the year. Our products and our turnover depend on investments in this sector. However, investments have slowed down considerably. “
But why Déville in particular?
“In Europe, we are particularly dependent on the oil and gas market. All of our sites experienced a significant drop in costs. Taking into account the forecasts of a gradual recovery to return to the level of investment in 2019, we have to wait until 2024. In some sites, such as in Hauts-de-France, transitional adaptation measures are sufficient. But we have production overcapacity. Déville is one of the three heat treatment plants in Europe. These three factories are very underutilized. We must preserve our competitiveness and therefore stop production. “
What would be the measures of the public authorities likely to influence or even cancel this closure?
“I am not sure that local or even national elected representatives can have the solution. The market collapses with no prospect of recovery. Whenever we can find accommodation, we do it. We preserved Saint-Saulve in the North because there are two production lines, because we are thinking of negotiating an agreement on long-term part-time work there for two years. In the case of Déville, given the fall in the market, this is not possible. We have to adapt structurally so as not to lower our competitiveness. “
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” We want
that there is
a solution for each employee ”
What support measures do you envisage for the employees of Déville-lès-Rouen?
“There are 190 positions involved. We want there to be a solution for everyone and we want the site to be reindustrialised. You have to use all the levers. We hope to be able to benefit from age measures for around 40 employees. Although Vallourec is cutting 350 jobs in France, there are 80 internal jobs that have been identified for reclassification. This involves moving. We have asked an external firm to identify external positions, positions where training will be necessary. It is an issue. “
And the enormous site of Déville : what will become of it after the planned closure on June 30, 2021?
“It is our objective to find a future for this site, with the town hall of Déville, the Metropolis, all the local players. Find a buyer for the thermal activity? It is irrelevant. It is necessary to identify with the local actors what activities could be installed on this site which benefits from a rail service in connection with the port of Rouen and the Seine. This site has advantages, but also constraints given the urbanization of the place. Identifying these activities that could take place is a job to be done quickly. “
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