RESHORING CASE

Mersen (IT)

Company details
Code: 
MersenIT
Company name: 
Mersen
Company country: 
France
Number of employees: 
6400
Sector: 
C - Manufacturing
Sector detail: 
C24 - Manufacture of basic metals
Sub-sectors: 
C24.4.5 - Other non-ferrous metal production
Reshoring details
Reshoring announcement date: 
20/05/2014
Starting implementation date: 
May, 2014
End of Implementation : 
December, 2015
Reshored to: 
France
Reshored business function: 
Production
Partial or Total reshoring: 
Total
Reshoring governance mode: 
In house (in own facilities)
Estimated job gains: 
35
Reasons for reshoring: 
Firm's global reorganization
Need for greater organizational flexibility
Reshoring ERM database code: 
http://www.eurofound.europa.eu/observatories/emcc/erm/factsheets/mersen
Case narrative: 

The Mersen group, which manufactures electrical specialties and graphite-based materials, has announced 300 job cuts in the framework of a global reorganisation plan. The plan will lead to the relocation of production; however it will often remain within similar geographical areas. In Europe, production at the plants in Cevins (France), Patrica (Italy), Portslade (UK) and Jestetten (Germany) will be relocated to other Group facilities in Austria, France and the United Kingdom. In addition, the plant in Frankfurt (Germany) will be resized. In the United States, production at the facilities in Midland (Michigan) and Oxnard (California) will be reassigned to other plants in the country.

According to Mersen, "this new organization would enable Mersen to improve its performance and flexibility while expanding its innovation and investment capabilities for the future".

While the plan is likely to lead to the reduction of about 300 jobs across the sites, a company press release highlights "it would also lead to the creation of positions in the recipient sites", but gives no data. The plan will be implemented in 2014 and completed by the end of 2015. Mersen intends "to lead the project in accordance with its high-quality social dialogue practices".  Mersen had around 60 employees in Partica, at the date of the announcement. 45 employees have already been let go in Italy when the plant closed.

 

Sources: 

Mersen Press Release, 20/05/2014
Les Echos, 21/05/2014

Offshoring details
Offshoring location: 
Italy
Offshoring governance mode: 
In house (in own facilities)
Offshoring entry mode: 
Wholly owned
Host country geographical area: 
Western Europe