FRENCH GLASSWARE MANUFACTURER ARC CLOSES FACTORIES

The international manufacturer of glass products Arc, whose main office is located in France, announced the forced suspension of its enterprises. The reason was a sharp rise in the price of natural gas and electricity prices.

The management also reported on forced leave for 1.6 thousand employees.

 According to Nicholas Hodler, Executive Director of Arc International, the current situation has turned out to be the most dramatic in almost two centuries of the company's existence.

The company originated in the town of Arc in northern France in 1825. It was originally called Verrerie Cristallerie d'Arques and was associated with the production of crystal goblets produced by local glass blowers. By the beginning of the XXI century, the company had become an international corporation operating factories on five continents. Until recently, the tableware produced by the company (Luminarc, Arcoroc, Cristal d'Arques brands, etc.) was sold in 160 countries around the world.

In France, more than 5 thousand people work at the company's factories. About 15 thousand more jobs are indirectly connected with the work of the enterprise in France, starting from manufacturers of packaging for glass products and ending with carriers.

According to European publications, the reduction in the supply of Russian gas to EU countries has brought significant risks. The company's management in France completely stopped 4 out of 9 furnaces, transferring the rest to environmentally harmful diesel.

The Arc plant in France is a very energy–intensive enterprise. The company produces about 4 million glasses daily. It is noted that last summer, due to fuel shortages, electricity bills rose to $75 million compared to €19 million a year earlier.

Experts note that consumer behavior has also changed. In particular, the demand for washing machines, for which the company manufactured glass components, has significantly decreased.

Nicholas Hodler, who was appointed director last year, tried to steer the firm away from the financial problems caused by the pandemic. At the end of the year, the French authorities allocated a loan of €45 million to the company. Now the company's management is asking the government for additional assistance. The firm is cutting staff, hoping that this will be a temporary measure. But even this increases the risk of a painful recession.

Фото: Изображение от Freepik