The FIGEAC AERO Group (ticker: FGA), a reference spouse of the main aircraft manufacturers, announces its objective of resizing operations in its FigeacArray, the Group’s main production in France, in reaction to the economic crisis triggered through Covid. 19 fitness crisis.
The French aerospace industry has grown significantly until 2020 and the need for sufficiently good production capacity has grown rapidly, leading FIGEAC AERO to adapt its production capacity and resources to production rates expanding at varying rates. Then, the global coronavirus crisis came in March 2020, causing a sudden closure of the air transport sector with a drop in air traffic as the epidemic spread.
As a result, major aircraft brands have had to substantially reduce (by more than a third) their production rates for the foreseeable future, i.e. for long-haul aircraft such as the A350; this weighs even more on the Group.
FIGEAC AERO introduced an operational optimization plan at the start of the crisis, which included:
However, the economic slowdown in the air traffic industry is expected to continue in the coming years and its impact will force FIGEAC AERO to reorganize its operations in France on a large scale to maintain its competitiveness and protect itself from economic conditions. the demanding situations that are on the horizon and have an impact on employment.
This Employment Protection Plan applies to the Figeac plant (46) and includes:
Thanks to the various government measures to the aerospace industry and the partial unemployment, extended for up to two years, FIGEAC AÉRO deserves to be able to restrict its labor force discounts to 320 jobs out of a total of 966 at the Figeac site, representing more than 70% of the Group’s turnover.
FIGEAC AERO will work with its social partners to restrict the impact of this plan and will put into force a number of measures such as voluntary redundancy and long-term part-time painting in activities adapted to these schemes.
The Group is already involved in a discussion between workers and management and looks forward to finalizing agreements so that they can take effect in January 2021.
The Group continues to explore all avenues and dismisses other measures that have just been implemented at its other sites, with the aim of adapting its load scheme to the existing crisis.
“The Group is facing an unprecedented economic recession caused by the Covid-19 fitness crisis,” said Jean-Claude Maillard, president and chief executive officer of FIGEAC AERO. The Group was able to make decisions quickly, temporarily mitigating the operational and monetary consequences of this crisis. I am aware of the implications of plan measures for all of our employees. However, they are if we are to ensure that our Group remains viable and resilient in the long term and allows you to plan for its future. “
ABOUT FIGEAC AERO
The FIGEAC AERO Group, a reference spouse of major aircraft manufacturers, specializes in the production of alloy and hard steel structural parts, engine parts, landing equipment and subassemblies. FIGEAC AERO is a global organization with a presence in France, the United States, Morocco, Mexico, Romania and Tunisia. The Group generated annual sales of 447 million euros as of 31 March 2020.