State revises plan to save Ascoval steel mill

It remains a hope to save the steel mill Ascoval of Saint-Saulve (North) and its 281 employees. A hope of infinity, but a hope all the same. This requires a thorough review of the only recovery project currently on the table, that presented by the company Altifort, indicated the authorities, Wednesday, October 31, during a meeting in Bercy with the various actors of this industrial file become iconic.

Given the work that is still needed to achieve a viable plan, Altifort will not be able to deliver a proper takeover bid by the scheduled date, November 7. A new deadline, until the beginning of December, should therefore be asked of the Strasbourg court. In the meantime, the teams of the Ministry of Economy will continue to collaborate with the possible buyer. "We have four weeks to confirm the order book, consolidate the financing plan, convince the banks to participate", said Wednesday the Minister of Economy Bruno Le Maire. "It's a new reprievecomments Bruno Kopczynski, spokesman for the inter-union. We start from scratch, it will be very long for employees. "

In the meantime, the state urges striking employees to return to work, so as not to despair potential investors. A general meeting is scheduled in the afternoon.

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In the North, the impossible agreement to take over the Ascoval steelworks

With Altifort, but without Vallourec

After contacting nearly a hundred possible partners, the Ministry of the economy has for several months put on the only candidate on the ranks: Altifort. Problem, the project developed by this large SME was largely based on the support of Vallourec, the former shareholder remained the main customer of the steel mill. However, Philippe Crouzet, the boss of Vallourec, refused to put in this rescue the tens of millions of euros that were asked of him.
As a result, Altifort's first plan does not hold water. With the consulting firm Roland Berger, the experts at Bercy began to imagine another solution. With Altifort, but without Vallourec neither as a client nor as a financier.

This new Plan B is based on a change of strategy. Instead of relying on conventional steels with a relatively low margin, Saint-Saulve has to be transformed into a special steel plant. This would require in particular to invest downstream in a new production tool, a wired train.

On paper, the project is considered credible and viable by Roland Berger given the opportunities. But two decisive points remain to be settled. First, we must find customers ready to commit to the term, while Escoval had no commercial activity so far: all its production went to Vallourec. Then and above all, it is necessary to raise the 150 to 200 million euros considered as essential to the recovery.

Altifort executives now say they are ready to contribute 20 to 30 million euros in equity. The Hauts-de-France region puts 12 million on the table, and 10 million could come from the city of Valenciennes and surrounding communities. The state, finally,
is willing to bring one euro of public money for one euro of private money invested.

But all of this does not result in the total target yet. "It's not won yet, but we believe it hard like ironsaid Wednesday Xavier Bertrand, the president of the region. If everyone plays the game to the end, this factory can be saved. "

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In France, the manufacturing industry is far from being out of the woods