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Industry. pipe company Vallourec wants to close German factories

Industry:
Pipe Group Vallourec wants to close German factories

Worker inspects steel pipes at Vallourec manufacturing plant. Photo: image alliance / dpa

© dpa-infocom GmbH:

From the end of 2021, the French group is trying to sell its two factories in Düsseldorf and Mülheim an der Ruhr. Apparently in vain. 2400 people suffered from the closure.

The French steel pipe group Vallourec wants to close its two traditional plants in Düsseldorf և Mülheim an der Ruhr. A total of about 2,400 workers were injured, the company said in Dusseldorf on Wednesday.

Production is expected to be completed by the end of 2023. Both sites used to belong to Mannesmannrohren-Werke AG.

Vallourec has been trying to sell the two plants since November. According to the company, however, none of the proposals presented a stable future safety of production sites. Vallourec Germany mainly produces stainless steel pipes for the oil and gas market, as well as industrial applications in mechanical engineering and steel construction.

Economic reasons

The production of stainless steel pipes in Germany is no longer feasible for Vallourec for economic reasons, explained CEO Philipp Guillemot. Vallourec Germany has been suffering significant losses for seven years already. The reasons for this are overproduction of industry, falling margins, as well as external shocks such as various oil crises, punitive tariffs from China, the corona crisis, the Ukraine war started by Russia, which sharply affected the prices of raw materials and energy.

Vallourec now wants to start negotiations with the խորհուրդ IG Metall’s Social Reconciliation Social Work Program. “We are interested in finding a fair and dignified solution for the people we have worked with for so long,” Guillemot said. “We are trying to mitigate the consequences as much as possible, taking into account the general situation.

dpa:

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