EMCC European Monitoring Centre on Change



Geographic Location

Country: France
Location of affected unit(s): Châteaubernard, + Other locations


Sector: Manufacturing
Manufacture of rubber and plastics products, and other non-metallic mineral products
23.13 - Manufacture of hollow glass
Number Employed: 2500

Employment Effects

Announcement Date: 12-06-2020
Planned Job Reductions min: 130
Planned Job Reductions max: 130
Type of Restructuring: Internal restructuring
Employment Effect Start: 01-09-2020
Other Job Reduction Measures: 130

Additional Information

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.