Official announcements from Fonderie de Bretagne or Renault, local government declarations, or reputable news outlets

Fonderie de Bretagne in Caudan Faces Closure as Renault Rejects Takeover, Threatening 350 Jobs

Dec 20, 2024, 01:30 PM

The Fonderie de Bretagne, located in Caudan, Morbihan, and employing 350 people, has announced the failure of negotiations aimed at its takeover by the Private Assets fund. The company accuses Renault, its primary client representing 95% of its revenue in 2024, of refusing to validate the terms of the agreement, leading to the imminent closure of the plant. The Fonderie de Bretagne, which produces cast iron parts for suspensions and exhaust systems, had been in talks with Private Assets since July due to severe financial deficits. The failure of the negotiations was attributed to Renault's lack of commitment to future order volumes for the years 2025, 2026, and 2027, which was crucial for the feasibility of the takeover. The Private Assets fund had committed to adding 11,000 tonnes of production to the workload, but an additional 2.9 million euros was needed to finalize the agreement. The French government and local authorities had pledged financial support amounting to 16 million euros, in addition to 2.5 million euros from France 2030, but Renault's refusal to provide sufficient visibility on future orders has led to the collapse of the deal. The Fonderie de Bretagne expressed deep disgust and anger at Renault's cold cynicism, especially as the decision was made just before Christmas.