EMCC European Monitoring Centre on Change

Vallourec Tubes France

Company/Organisation:
Vallourec Tubes France

Geographic Location

Country: France
Location of affected unit(s): Déville-lès-Rouen, Saint-Saulve, Aulnoye-Aymeries

Company

Sector: Manufacturing
Manufacture of basic metals and fabricated metal products, except machinery and equipment
24.20 - Manufacture of tubes, pipes, hollow profiles and related fittings, of steel
Number Employed: 2900
Group: Vallourec

Employment Effects

Announcement Date: 18-11-2020
Planned Job Reductions min: 350
Planned Job Reductions max: 350
Type of Restructuring: Internal restructuring
Employment Effect Start: 01-01-2021

Additional Information

Vallourec, the French specialist in seamless steel tubes, has announced 350 job cuts. 

The company is heavily dependent on an auto market where demand has reduced due to the COVID-19 pandemic and reduced mobility / transport. The company is set to close the Déville-lès-Rouen plant (Seine-Maritime), which accounts for 200 jobs. The group's sites in the Nord department would also be affected by the loss of 130 jobs, 43 of them at  Aulnoye-Aymeries plant and roughly 90 at Saint-Saulve plant.

Vallourec recorded sales of €716 million in the third quarter of 2020, down by 32%, but its gross operating income remained slightly higher. Worldwide, Vallourec plans to cut 1,050 positions out of a total of nearly 19,000 employees. It had already announced in the first half of the year that it was cutting 900 jobs in North America, that is a third of the region's workforce. Three previous restructurings were announced in 2015 with 550 job cuts145 job cuts in May 2014 and 117 job cuts in 2004.

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