Renault confirmed, Wednesday, November 25, its intention to stop the assembly of new vehicles in its factory in Flins, in Yvelines, and to close its mechanical component recycling site in Choisy-le-Roi, in Val -de-Marne, instead creating the first European circular economy factory dedicated to mobility.
The large Yvelines plant, which will produce the Zoé until 2024, will be renamed “Re-factory” and will cease producing new vehicles. It will be devoted to the reconditioning of used vehicles, the recycling of end-of-life vehicles, the repair and reuse of batteries, and research, the group said in a statement.
Renault has no choice but to transform the Flins plant, said the chairman of the diamond group. “We had the opportunity to look reality in the face, knowing that lucidity is the first wisdom and that we all know that the status quo is no longer possible today for Flins”, said Jean-Dominique Senard during a teleconference. “So we have to reinvent Flins, we’re here to save Flins. “
The plant is expected to employ 3,000 people by 2030, the group announced Wednesday after meetings with employee representatives. This workforce would reflect an increase if we are based on the current number of permanent positions – 2,400 in Flins and around 260 in Choisy – but a sharp drop if we add the 1,400 temporary workers currently employed in Flins, from where the group’s electric bestseller, the Zoé, comes out. The implementation of this “Industrial and commercial ecosystem” will intervene gradually “Between 2021 and 2024, to replace the production activity of new vehicles”, Renault said.
The unions hoped to maintain a new vehicle assembly activity in the group’s oldest terminal plant still in operation, but the manufacturer has chosen to gradually replace it with activities linked to the circular economy. The site, which will produce the electric Zoé until 2024, will be transformed to recondition up to 130,000 used vehicles per year by 2030.
Two billion euros in savings over three years
This transformation is part of the drastic restructuring plan initiated by the new Managing Director Luca de Meo. Renault has launched a plan of 2 billion euros in savings over three years. The group announced at the end of May this plan which provides for the elimination of 15,000 jobs worldwide, including 4,600 in France. Support and training systems for Flins and Choisy-Le-Roi employees are planned for “Develop skills”, Renault said. Flins will also host an incubator as well as a university and training center.
“With the Re-factory, Flins will become a European benchmark in the circular economy”, underlined Luca de Meo, CEO of Renault. “This plant, with a CO balance sheet objective2 negative for 2030, is fully in line with the group’s overall strategy by combining circular economy, reduction of emissions, skills development and creation of new value-generating activities ”.
The last closure of an assembly plant in France dates back to the end of 2013 with the cessation of production at the PSA plant in Aulnay-sous-Bois, in Seine-Saint-Denis.