Steel industry: Novasco placed in receivership

This is the fourth receivership since 2014 for the 776 employees of Novasco ( formerly Ascometal ). On Monday, August 11, the commercial chamber of the Strasbourg court ruled out the possibility of compulsory liquidation for the manufacturer of specialty steels, particularly for the automotive sector. The deadline for submitting takeover bids has been set for the end of the first week of September.

A short deadline, imposed due to the group's cash flow difficulties, explains Yann Amadoro, CGT secretary of the social and economic committee (CSE). The court is expected to rule on the various offers at a hearing scheduled for September 25.

In July 2024, the former Ascometal was taken over by the British investment fund Greybull Capital . The latter had committed to injecting €90 million into the company. Only €1.5 million was ultimately paid. The State, for its part, provided €75 million of the €85 million promised. The payment of the remaining €10 million is expected during the second half of August, according to the CGT union. Although he does not hold the State responsible, Yann Amadoro criticizes it for not having "been vigilant enough during the implementation of the plan to anticipate the drift early enough."

To date, six takeover candidates have been interviewed , but none have proposed a comprehensive offer for all assets. The main concern today is particularly focused on the Hagondange site (Moselle). The group's three other machining and finishing sites, Custines (Meurthe-et-Moselle), Saint-Étienne (Loire) and Leffrinckoucke (Nord), have received expressions of interest from potential buyers, according to Yann Amadoro. But nothing yet for the Moselle site, which employs some 450 people and provides thousands of indirect jobs . "We would like the State to initiate a takeover project and to take shares in the company," claims the CGT secretary of the Novasco CSE.

For the unionist, the situation is "heresy" : "The government claims that we must support industry and support the ecological transition. But we are about to close an electric steel mill that produces steel in a carbon-free way," rages Yann Amadoro. He also warns of a possible loss of industrial sovereignty in the automotive and defense sectors. "It's an economic, social, and financial catastrophe," he sums up bitterly.

Since July 22, the Hagondange site has been blocked by employees. "We are still blocking the flow of finished products because it is the last thing that has value in the company. The idea is either to attract a potential buyer or to negotiate decent severance measures," says Yann Amadoro. A general meeting will be held on August 25, when the site reopens, currently on summer break. A citizens' march is also scheduled for September 4.