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France slams Ford’s ‘shameful’ move to shut Bordeaux car plant

The French government on Tuesday denounced a decision by US automaker Ford to shutter a plant making gear boxes near Bordeaux, after the company rejected a takeover bid that could have saved some of the 800 jobs at the site.

France slams Ford's 'shameful' move to shut Bordeaux car plant
Photo: AFP

Government spokesman Benjamin Griveaux accused Ford executives of taking a “shameful attitude” in refusing a final offer from Franco-Belgian equipment manufacturer Punch Powerglide on Monday.

French officials had hailed the improved bid lodged by the Strasbourg-based Punch-Powerglide last week, which could have allowed around half the employees to keep their jobs.

In return unions had agreed to a pay freeze and more flexible working hours. “We will make them (Ford) pay for the laid-off employees, for the clean-up of the site, and for new industrialisation efforts for the region,” Griveaux told France Info radio.

But he said the government would not try to claw back some 15 million euros ($17 million) in state aid received by Ford in recent years, as sought by Philippe Poutou, a trade union official at the site who ran for president against Emmanuel Macron in 2017.

“I understand Mr Poutou's anger… but in a state governed by the rule of law, you cannot demand that this aid be repaid,” he said.

He also ruled out nationalising the site, saying the best way forward was “to find ways to diversify the industrial activities” at the Blanquefort site in southwest France.

Ford, which announced the closure nearly a year ago, had said it did not consider Punch Powerglide's plan convincing, and unions themselves had noted the offer was not accompanied by guarantees of sufficient client orders to sustain the site over the long term. 

“We are aware of the consequences this decision to halt production will have on our workers, their families and the local community,” Ford said Monday.

It said it would help laid off workers retrain to find new jobs, without providing details on how much it would spend on severance and other measures.

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ENVIRONMENT

Sweden’s SSAB to build €4.5bn green steel plant in Luleå 

The Swedish steel giant SSAB has announced plans to build a new steel plant in Luleå for 52 billion kronor (€4.5 billion), with the new plant expected to produce 2.5 million tons of steel a year from 2028.

Sweden's SSAB to build €4.5bn green steel plant in Luleå 

“The transformation of Luleå is a major step on our journey to fossil-free steel production,” the company’s chief executive, Martin Lindqvist, said in a press release. “We will remove seven percent of Sweden’s carbon dioxide emissions, strengthen our competitiveness and secure jobs with the most cost-effective and sustainable sheet metal production in Europe.”

The new mini-mill, which is expected to start production at the end of 2028 and to hit full capacity in 2029, will include two electric arc furnaces, advanced secondary metallurgy, a direct strip rolling mill to produce SSABs specialty products, and a cold rolling complex to develop premium products for the transport industry.

It will be fed partly from hydrogen reduced iron ore produced at the HYBRIT joint venture in Gälliväre and partly with scrap steel. The company hopes to receive its environemntal permits by the end of 2024.

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The announcement comes just one week after SSAB revealed that it was seeking $500m in funding from the US government to develop a second HYBRIT manufacturing facility, using green hydrogen instead of fossil fuels to produce direct reduced iron and steel.

The company said it also hoped to expand capacity at SSAB’s steel mill in Montpelier, Iowa. 

The two new investment announcements strengthen the company’s claim to be the global pioneer in fossil-free steel.

It produced the world’s first sponge iron made with hydrogen instead of coke at its Hybrit pilot plant in Luleå in 2021. Gälliväre was chosen that same year as the site for the world’s first industrial scale plant using the technology. 

In 2023, SSAB announced it would transform its steel mill in Oxelösund to fossil-free production.

The company’s Raahe mill in Finland, which currently has new most advanced equipment, will be the last of the company’s big plants to shift away from blast furnaces. 

The steel industry currently produces 7 percent of the world’s carbon dioxide emissions, and shifting to hydrogen reduced steel and closing blast furnaces will reduce Sweden’s carbon emissions by 10 per cent and Finland’s by 7 per cent.

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