Restructuring events
European Restructuring Monitor (ERM)
The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Deliled is a French company that manufactures LED lamps. Deliled is a small company with only 9 employees. It is based in Lunel in Hérault (France) and has a turnover of 2mln €. According to the news, the company has decided to partially backshore the production previously carried out in China to the French headquarters for several reasons. In particular, the cost of labour in Asia has greatly increased in recent years, reducing the gap between in the total cost of production between China and France to just a 2/3% of the final cost to the customer. Moreover, difficulties in forecasting demand and delays in shipping have forced the company to maintain a high level of stock. It takes Deliled two months between ordering a product in China and its delivery, French production will reduce this period to two weeks. The company mainly provides lighting for large contractors such as Vinci or Fayat. Order times and amounts vary, so Deliled must store large amounts of goods for delivery and be able to produce additional units quickly. Backshoring should also allow the company to increase its reactivity to the market, releasing new versions, new colours, shapes, as well as planning related products. The backshoring entails the creation of 3 new job positions, the investment of 300.000€ in manufacturing machinery, as well as the search of a French manufacturer in order to outsource metal parts locally .
Eurofound (2016), Deliled, Reshoring in France, factsheet number 149, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/149.