VIENNA—Semperit A.G. Holding is considering the possible complete shutdown of its Sempertrans production site in Argenteuil, France, as part of its measures to save costs and restructure.
In a statement, the company said it started consultation and negotiation with the representatives of the affected French employees on June 30. On the agenda is the possible closure of the production site of Semperit's 100 percent subsidiary Sempertrans France Belting Technology S.A.S.
If finalized, the shutdown would impact 64 employees at the production site, which produces special conveyor belts. The subsidiary's office in Levallois, France, will not be affected by the measures.
Semperit Group communications manager Martina Buechele said that the decline in global conveyor market, mining industry slowdown had prompted the restructuring measures.
Buechele also cited tough competition, pressure on prices and the significant impact of raw material price volatility on margins as contributors to the decision.
According to the Semperit spokeswoman, under the new restructuring plan, Semperit aims to consolidate its production into one site in each of its regions, with its manufacturing plant in Belchatow, Poland, producing for the European region and strategic supply.
Other Sempertrans production sites are based in India and China, which manufacture conveyor belts both for domestic use and export.
No other activity of the Semperit Group in France is affected by these measures.
The company expects the closure to have an $11.3 million impact in terms of exceptional charges and one-off expenses for the Semperit Group.