RESHORING CASE

Safran

Company details
Code: 
Safran
Company name: 
Safran
Group name: 
Safran
Company country: 
France
Number of employees: 
56200
Sector: 
C - Manufacturing
Sector detail: 
C30 - Manufacture of other transport equipment
Sub-sectors: 
C30.3 - Manufacture of air and spacecraft and related machinery
Reshoring details
Reshoring announcement date: 
24/05/2016
Starting implementation date: 
June, 2016
End of Implementation : 
December, 2017
Reshored to: 
France
Location of affected unit(s): 
Saint-Amand-les-eaux
Location code: 
FR301
Reshored business function: 
Mantainance
Partial or Total reshoring: 
Partial
Reshoring governance mode: 
In house (in own facilities)
Estimated job gains: 
200
Reasons for reshoring: 
Government support to relocation
Loyalty to the home country
Case narrative: 

Safran is a French aeronautic company that works in the aviation sector.  Safran builds and maintains components of aircrafts. Partnering with AirFrance - KLM, Safran is creating a joint venture which aims to backshore the mantainance of aircraft components from Singapore to France. Safran will hold 51% of the partnership, and Air France-KLM will hold 49%. Total forcasted investment is as much as €20 million ($22.45 million).

A factory specialised in the maintenance of plane engines will open in Saint-Amand-les-eaux, near Valenciennes. 200 jobs are expected to be created, with 60 safeguarded until 2017.

Both companies are partially owned by the French State, which, according to the source, has played a key role in the decision to backshore.
The new French plant will specialise in the maintenance of a specific airplane engine (the CFM56 engine), which is currently the best-selling plane engine in the world. Safran is simultaneously expanding its investments in Singapore, and Safran reported that helicopter production and maintainance will remain there.

Sources: 

Le Monde, 24 May 2016,

Safran Press Release, 24 May 2016 

Offshoring details
Offshoring location: 
Singapore