Type
Offshoring/Delocalisation
Country
France
Region
Location of affected unit(s)
Marange-Silvange, Petit Quevilly, Maizières-les-Metz, Ennery
Sector
Manufacturing
Manufacture Of Computer, Electrical Electronic And Optical Products
Manufacture Of Electrical Equipment
27.12 - Manufacture of electricity distribution and control apparatus
New offshoring locations
Poland

170 jobs
Number of planned job losses
Job loss
Announcement Date
7 May 2015
Employment effect (start)
1 June 2015
Foreseen end date
31 December 2015

Description

Schneider Electric has announced the relocation of its mass produced transformer activity from France to Poland.

The relocation will result in two redundancy plans. One will affect three sites of its subsidiary France Transfo in the region Lorraine (Marange-Silvange, Maizières-les-Metz and Ennery) with 90 jobs cuts of a total workforce of 530 employees.

The second results in the closure of the Petit-Quevilly site (Seine-Maritime) with 80 dismissals. Schneider Electric has previously announced a reoganisation in 2014 with 200 job cuts (see ERM FS) and in 2013 with 600 job cuts (see ERM FS). According the union FO, the site of Quevilly will close by end if June.

The reorganization is a result of pressure to lower prices from its clients, mainly ERDF (distribution of electricity). According to the press, the main competitors of Schneider Electric, such as Siemens or ABB, have already offshored their transformer activities to eastern European countries to address increased pressure on prices. The reorganisation is also linked to the takeover in 2010 of the transmission & distribution division of the nuclear group Areva (Areva T&D). Schneider Electric made the commitment to maintain employment levels for three years and this period is now over so the company is free to reorganise the electricity distribution activities.


Sources

  • 7 May 2015: Les Echos
  • 19 May 2015: L'usine Nouvelle
  • 12 May 2015: France 3 Lorraine

Citation

Eurofound (2015), Schneider Electric, Offshoring/Delocalisation in France, factsheet number 83475, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/83475.