EMCC European Monitoring Centre on Change

Zalco

Company/Organisation:
Zalco

Geographic Location

Country: Netherlands
Region: Overig Zeeland; Zeeland; West-Nederland
Location of affected unit(s): Vlissingen

Company

Sector: Manufacturing
Manufacture of basic metals and fabricated metal products, except machinery and equipment
24.42 - Aluminium production
Number Employed: 610

Employment Effects

Announcement Date: 13-12-2011
Planned Job Reductions min: 530
Planned Job Reductions max: 530
Type of Restructuring: Bankruptcy

Additional Information

On 13 December 2011, aluminum producer Zalco filed for bankruptcy leading to 610 job losses. Since then, it had remained unclear what would happen to the employees.

On February 2nd the receiver company declared that the chances of a takeover were small and that the employees were going to be dismissed. There is some chance that two departments of the firm can continue. The bankruptcy is due to high energy prices (Zalco was the second biggest consumer of electricity in the Netherlands) and low revenues.

Employees will be supported through funding from the Ministries of Economic affairs and Social Affairs and Employment in the province of Zeeland, amounting to € 800,000. 

As reported, the Netherlands applied for assistance from the European Globalisation Adjustment Fund (EGF).

UPDATE 10.08.2012: It was announced that employees will be supported by a 1.5 million Euro fund. Moreover, in June parts of Zalco were taken over for a restart, resulting in the safeguarding of 80 jobs.