Future of Vencorex Chemical Plant in Limbo as Stakeholders Consider Two Recovery Scenarios
The Isère-based chemical plant faces potential buyout by a Chinese group or a cooperative led by its employees following a recent tribunal meeting.
The future of the Vencorex chemical plant, located in Pont-de-Claix near Grenoble, hangs in the balance as stakeholders await a court decision scheduled for April 10. The interim review follows a six-month extension granted in March, during which two primary recovery options have been considered.
The first scenario involves a partial takeover by Chinese conglomerate Wanhua, which plans to retain between 50 and 70 employees from Vencorex's original workforce of 450.
The second scenario proposes the establishment of a société coopérative d'intérêt collectif (SCIC), an initiative rapidly developed by two employees from the CGT labor union, supported by a local entrepreneur.
Denis Carré and Séverine Dejoux, representing the employee-led initiative, expressed confidence in their capacity to present a compelling offer.
Their proposal, named CIRCEI (Cooperative for the Industrial Revival of Chemistry and Electrochemistry of Isocyanate), aims for the complete acquisition of Vencorex's tangible and intangible assets, seeking to employ 273 of the current 301 workers following a significant reduction in the workforce earlier this year.
The cooperative's offer includes a symbolic price of €2 for the company takeover and envisions creating a chemical innovation platform capable of attracting numerous businesses to the site for seamless operations.
Partner Olivier Six, CEO of a neighboring metal engineering company and local opposition politician, stated that only four weeks remain to convert commitments into financial backing.
To facilitate the factory's revival, CIRCEI requires an initial liquidity injection of €20 million upon reopening and a total of €120 million by 2029. Financial documents obtained indicate that the cooperative plans to secure €60 million from public sources through grants, capital, quasi-equity, and loans, alongside €40 million in bank loans.
Local governments have already pledged around €300,000, with the Auvergne-Rhône-Alpes region expressing its intent to invest, although specific amounts have not been disclosed.
Concerns have heightened among employees, local officials, and national politicians regarding the potential consequences of Vencorex’s closure.
They argue that such a liquidation could jeopardize not only direct jobs but also thousands of other positions in the region due to the interconnected nature of the chemical sector.
Furthermore, dismantling the plant could undermine strategic sectors like nuclear and space, which rely on products manufactured by Vencorex, leaving a heavily contaminated site without a viable solution.
Amid the ongoing discussions, several politicians, including François Hollande, Olivier Faure, and LR deputy Olivier Marleix, have called on President Emmanuel Macron to intervene in this critical matter and help remove barriers to the cooperative's proposal.
They highlight the urgency of a high-level governmental response to avert a potential industrial, environmental, social, and strategic crisis.
In contrast, Wanhua's Europe director, Gauthier Herrmann, described the Chinese offer as solid, emphasizing the significant investments planned to optimize and stabilize operations at the Pont-de-Claix facility while reducing costs.
Vencorex entered judicial recovery on September 10, following a request from its Thai petrochemical parent company, PTT GC. A proposal for temporary nationalization of Vencorex was rejected earlier this year by Prime Minister François Bayrou.
The first scenario involves a partial takeover by Chinese conglomerate Wanhua, which plans to retain between 50 and 70 employees from Vencorex's original workforce of 450.
The second scenario proposes the establishment of a société coopérative d'intérêt collectif (SCIC), an initiative rapidly developed by two employees from the CGT labor union, supported by a local entrepreneur.
Denis Carré and Séverine Dejoux, representing the employee-led initiative, expressed confidence in their capacity to present a compelling offer.
Their proposal, named CIRCEI (Cooperative for the Industrial Revival of Chemistry and Electrochemistry of Isocyanate), aims for the complete acquisition of Vencorex's tangible and intangible assets, seeking to employ 273 of the current 301 workers following a significant reduction in the workforce earlier this year.
The cooperative's offer includes a symbolic price of €2 for the company takeover and envisions creating a chemical innovation platform capable of attracting numerous businesses to the site for seamless operations.
Partner Olivier Six, CEO of a neighboring metal engineering company and local opposition politician, stated that only four weeks remain to convert commitments into financial backing.
To facilitate the factory's revival, CIRCEI requires an initial liquidity injection of €20 million upon reopening and a total of €120 million by 2029. Financial documents obtained indicate that the cooperative plans to secure €60 million from public sources through grants, capital, quasi-equity, and loans, alongside €40 million in bank loans.
Local governments have already pledged around €300,000, with the Auvergne-Rhône-Alpes region expressing its intent to invest, although specific amounts have not been disclosed.
Concerns have heightened among employees, local officials, and national politicians regarding the potential consequences of Vencorex’s closure.
They argue that such a liquidation could jeopardize not only direct jobs but also thousands of other positions in the region due to the interconnected nature of the chemical sector.
Furthermore, dismantling the plant could undermine strategic sectors like nuclear and space, which rely on products manufactured by Vencorex, leaving a heavily contaminated site without a viable solution.
Amid the ongoing discussions, several politicians, including François Hollande, Olivier Faure, and LR deputy Olivier Marleix, have called on President Emmanuel Macron to intervene in this critical matter and help remove barriers to the cooperative's proposal.
They highlight the urgency of a high-level governmental response to avert a potential industrial, environmental, social, and strategic crisis.
In contrast, Wanhua's Europe director, Gauthier Herrmann, described the Chinese offer as solid, emphasizing the significant investments planned to optimize and stabilize operations at the Pont-de-Claix facility while reducing costs.
Vencorex entered judicial recovery on September 10, following a request from its Thai petrochemical parent company, PTT GC. A proposal for temporary nationalization of Vencorex was rejected earlier this year by Prime Minister François Bayrou.
