Valdunes: takeover by Europlasma validated by the commercial court

Europlasma will be able to take over Valdunes, the last French manufacturer of train wheels and axles. The Lille commercial court validated the group's takeover offer this Wednesday, March 20, with the support of the State, indicated the unions and management of the company. “The takeover proposal by Europlasma is accepted with entry into possession on March 21,” Guillaume Ferrand, representative of Valdunes management, told AFP.

Abandoned by its owner since 2014, the Chinese MA Steel, the northern company was placed in receivership last November by the Lille commercial court. Only one takeover offer was ultimately sent to the receiver. The Ukrainian Interpipe, the Czech Bonatrans and the Italian Lucchini, whose names had been circulating, did not follow up.

Europlasma, a Gironde company created in 1992, specializes in the treatment and recovery of hazardous waste. Listed on the Euronext market, the company employs 180 employees and operates 4 factories in France. It achieved a turnover of 7.1 million euros in sales in the first half of 2023, but suffered a net loss of 2.5 million. Europlasma first made an offer for the Leffrinckoucke forge alone, near Dunkirk. Under pressure from public authorities, its final offer also includes the machining and processing workshop of Trith-Saint-Léger, near Valenciennes.

“This is an important step. But the offer includes suspensive conditions, in particular support from the State, which must still be worked on,” explained Bercy at the beginning of February. The State has been campaigning for months for a takeover at two sites, in order to preserve all the skills of Valdunes, an essential link in the French railway industry. “We always said that we would be there, so we are ready to support the relaunch of Valdunes. We still need to refine the modalities - public aid, loans - in the coming weeks,” we pointed out a few weeks ago at the Ministry of the Economy. The State is also counting on the financial support of local authorities, primarily the Northern region, as well as on the contribution of customers - RATP, SNCF and Alstom -, as they committed to last October. This, in the form of new orders, or even a “symbolic” participation in the capital.

Also read: Valdunes placed in receivership: the descent into hell of the last French manufacturer of railway wheels

The company “promises 24 million investment over three years and the takeover of 175 employees”, we explained to Bercy. Which means the loss of more than 40% of jobs. If this offer goes through, the State undertakes to ensure that exemplary support is put in place for laid-off employees.

Europlasma's ability to meet its financial commitments, excluding public support, is questionable, while Valdunes' needs have been estimated by the firm Grant Thornton at 65 million over three years. This is in order to achieve a production rate of 80,000 wheels per year (for a capacity of 100,000), compared to 30,000 in 2023. However, Europlasma is targeting “the manufacture of 25,000 wheels in 2024” then an increase in production in the following years, in order to to “refocus Valdunes on the most profitable markets rather than on volumes”, specified Bercy. The objective is to “create a “green wheels” sector by decarbonizing the production of wheels and axles,” added the same source. Europlasma would consider installing an industrial waste processing activity on the Dunkirk site.

Gathered on February 1 in a general meeting, the employees took note of the offer from Europlasma, which would diversify into rail, a profession with which it is unfamiliar. “We are cautious. Europlasma is not the same scale, nor the same profession. We are demanding a commitment from the State and strict monitoring of the promised investments,” responded Philippe Verbeke, CGT representative at ArcelorMittal and national coordinator of the steel sector at the CGT. The union had called for a new round table to “strengthen the Europlasma project in order to give guarantees to employees”.

“We were also alerted by the CGT of Forges de Tarbes where commitments are not being kept,” added Philippe Verbeke. The company's employees were on strike on January 31, at the call of the union. Since July 2021, Europlasma has owned the only French manufacturer of “hollow bodies”, which are then armed by the land defense group Nexter to become the 155mm shells used by the Caesar cannons. The CGT des Forges de Tarbes affirmed that the promised investments (15 million) were not made, although the State had granted 7.1 million in repayable advances and that new orders (as part of support for the Ukraine) have been signed.

Another concern for Tarbes employees is the proposed takeover of Adomos. At the beginning of December 2023, the company, a specialist in rental real estate investment under Pinel law, in difficulty, entered into exclusive negotiations with Europlasma. It is expected that the latter will provide Adomos with 49% of the shares making up the share capital of Forges de Tarbes. This contribution would be remunerated by the issue of new Adomos shares allowing Europlasma to take control... An operation which does not please the employees of Tarbes or those of Valdunes.