The Verralia group, which manufactures packaging glass for beverages and food products, has announced a reorganisation that will lead to 130 job cuts in France out of a total workforce of 2,500. The group is going to cut 80 jobs at the Chateaurenard site near Cognac (Charente) where a furnace will be closed, 50 jobs will be cut in the six other factories of the group which operates 14 furnaces in France.
Management explains that the group is being penalised by the fall in demand on the wine market and the parallel increase in imports. The group points out that the French market is experiencing a continuous increase in imports from more competitive foreign glassmakers operating in neighbouring countries. Imports now account for one third of the domestic market. As a result, Verallia claims to be in a situation of overcapacity in certain market segments and therefore forced to review its production capacity. The plan will include end-of-career arrangements, early retirement and a voluntary redundancy plan. The employee consultation-information procedure will begin on 22 June.
In total, the group employs around 10,000 people in eleven countries.