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.
The management of Nypro, a subsidiary of the US group Jabil, specialised in the manufacture of medical devices by plastic injection and packaging, has announced the closure of its only French factory. It employs 115 people in its plant of Fontenay-sur-Eure (Eure-et-Loire).
According to management, the group has to face a very degraded economic situation. The plant has lost €25 million during the last five years, and loss of €34 million is forecasted by 2020, if nothing is done. The turnover dropped sharply, from €20.1 to €11.8 million between 2014 and 2016. The group has never stopped to invest in its site, but the market, under increasingly competitive pressure, has not kept its promises, and the projects identified have not been successful. As a result, the plant is running at only 15% of its capacities and the group is unable to "face the lack of competitiveness of the site", as the managing director of Nypro France SAS.
Therefore, the group has decided to close its French site, the less competitive within the group, and transfer its production Ireland and Spain, where 45 jobs will be created. The management explains it will propose some positions in other EU countries, and support the redundant employees to find a new position outside the company, mainly by other companies involved in the pharmaceutical cluster Polepharma. It will also try to find a solution of reindustrialisation of its site, that will be closed, according different sources, between end of 2017 and the first Semester 2018. Nypro employs 9,300 employees in 11 countries with a turnover of €1.8 billion in 2016.
Eurofound (2017), Nypro France, Closure in France, factsheet number 90937, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/90937.