A French court has delivered a contentious ruling regarding the future of steelmaker Novasco, formerly Ascometal, a decision that will result in hundreds of job losses across multiple regions. While a restructuring plan has been approved, safeguarding the Dunkirk facility, sites in Saint-Étienne, Custines, and hagondange are now facing closure. the move highlights ongoing pressures within the European steel industry, and has already prompted protests from impacted workers as unions seek to mitigate the fallout.
The Leffrinckoucke (Nord) site will be maintained, while facilities in Saint-Étienne (Loire), Custines (Meurthe-et-Moselle), and Hagondange (Moselle) face potential closure.
A French court has approved a restructuring plan for steelmaker Novasco, formerly known as Ascometal, but the deal will result in significant job losses. The ruling, reported Monday, November 17th, will see Métal Blanc acquire the company’s facility near Dunkirk, while plants in Saint-Étienne, Custines, and Hagondange are slated for liquidation.
The decision impacts a total workforce of 696 employees, with only 144 positions preserved at the Leffrinckoucke site. This outcome underscores the challenges facing the European steel industry amid fluctuating demand and global competition.
Novasco, a producer of specialty steels used in the automotive sector and other industries, has undergone four restructuring attempts since 2014. In 2024, the company was acquired by British investment firm Greybull Capital, which pledged a €90 million investment alongside a €85 million contribution from the French government. The government is now pursuing legal action against Greybull, holding the firm accountable for the steelmaker’s current financial difficulties.
The court also considered a proposal from Europlasma, which aimed to acquire three sites and a portion of the Hagondange facility, but ultimately deemed the plan insufficient.
The Hagondange site, with nearly 450 employees, represents the largest of Novasco’s French operations. Workers gathered Monday morning to protest the decision, and unions are now focused on securing favorable severance packages and potential support measures for affected employees, including assistance with retraining and job placement.
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