Business

Energy disaster: these factories in France are in trouble

Posted on September 20, 2022, 12:30 PMUpdated September 20, 2022, 6:54 PM

Thousands of industrialists are in misery, however solely a handful have recourse to the state in the meanwhile. Although power payments are skyrocketing in many sectors and amongst firms of all sizes, solely 300 of them have thus far utilized for the “Ukraine Fund” – the assist system deployed by the manager for buildings with greater than 10 staff.

Asked on Sud Radio on Tuesday in regards to the “danger of falling out” of producers this winter, the business minister, Roland Lescure, indicated that the latter was at the moment “restricted to a couple dozen firms”, greater than 300, who are ‘there, I can now not, our Something have to be executed’ warns. An image that contrasts sharply with the response of the varied federations (Federation of Companies and Entrepreneurs of France, Movement of Medium-sized Companies, General Confederation of Small and Medium-sized Companies, and many others.), which factors to a way more generalized danger inside the industrial tissue.

The flop of “Ukraine Fund”.

These 300 or so companies are really people who have reported to the Commissioners for Restructuring and Prevention of Business Difficulties (CRP), the Roland Lescure agency specifies. In the area, to the prefect, these civil servants historically act as mediators with firms in trouble and assist negotiate assist or get hold of credit score mediation.

The government designated their “Ukraine Fund” as interlocutors requesting the discharge of assist of as much as 2, 25 or 50 million euros, relying on the corporate’s state of affairs.

Why so few candidates regardless of the emergency? Badly calibrated, badly offered, in all probability inadequate – “1 to 2 million euros” disclosed for glass maker Durex when its annual invoice quantities to 13 million, Roland Lescure – mentioned, “Ukraine funds had been initially averted spectacularly by firms. 3 billion funds.” Only 50 million have been distributed, SME Minister Olivia Gregoire mentioned on Monday. Eligibility standards, which are too restrictive, have been urgently reviewed.

The checklist of obstacles continues to develop

But producers are more and more demanding one thing apart from this retroactive and sophisticated measure that does not clear up their invoice issues. Faced with skyrocketing electrical energy and gasoline costs for 2023, firms that must renegotiate their contracts proper now have probably the most issue supplying themselves with power with out jeopardizing their financial steadiness.

“What we are condemning now could be the dearth of low-cost levers”, famous “Les Ecos” Gildas Barriere, president of the electrical energy fee of the energy-consuming industries union (Uniden). The checklist of proposed options for 2023 contains, as in 2022, rising the quota of nuclear energy offered at regulated costs (ARENH) and even capping the worth of gasoline used to generate electrical energy as carried out by Spain – a system MEDEF desires of.

However, none of these options appear available to the federal government in the quick time period. On the topic of Aren, the continuing negotiations on the delisting of EDF are complicated points, and on the gasoline worth cap in electrical energy era, negotiations should resume on September 30 in Brussels because the unique implementation of this course of in France can be inefficient.

Meanwhile, the checklist of producers compelled to cease or restrict manufacturing is rising: glassmakers Duralex and Arc, steelmaker Ascometal, foundry aluminum Dunkirk, fertilizer maker Borealis…

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