Duralex Requests the Initiation of a Judicial Recovery Procedure.

by Apazone
0 comment 2 minutes read

In a recent development, French glassmaker Duralex has found itself in a challenging situation following the energy crisis of 2022.

New Duralex International (NDI), the operator of the renowned Duralex brand, has officially requested the initiation of a judicial recovery procedure with the Orléans commercial court. The primary objective behind this move is to seek a potential buyer for NDI, with the aim of securing the best possible outcome for the company and its 230 employees based at its historic factory in Chapelle-Saint-Mesmin, Loiret.

The difficulties faced by Duralex can be traced back to the significant increase in gas prices triggered by Russia’s invasion of Ukraine earlier in 2022. To mitigate the impact of this crisis, the company had received a temporary loan of EUR 15 million from the French government, allowing it to resume operations after a five-month hiatus. However, despite concerted operational efforts and ongoing investments, the challenges persisted into the 2023 financial year, exacerbated by factors such as inflation, a challenging consumer market, and heightened competition.

NDI has highlighted a recent ruling by the Orléans administrative court regarding the pollution rights of Duralex’s former owner, which has further strained the company’s financial stability. This judgment, issued in mid-March, has raised concerns about NDI’s ability to sustain its operations in the long term. NDI has expressed its intention to appeal this decision, recognizing the critical implications it poses for the company’s future.

On a positive note, Pyrex, a separate entity that acquired Duralex in January 2021, continues to operate without disruption. The commitment of Pyrex to maintaining its business activities underscores a sense of stability within the broader industry landscape.

In response to these challenges, the Minister of Industry, Roland Lescure, has pledged government support to explore potential recovery solutions for Duralex. Emphasizing the importance of collaboration with local stakeholders, Minister Lescure has called for collective efforts to navigate through this period of uncertainty and chart a path towards sustainable recovery.

As the situation unfolds, stakeholders across the industry will closely monitor the developments surrounding Duralex and NDI, recognizing the significance of finding a viable solution that safeguards the interests of the company, its employees, and the broader community. The resilience and determination displayed by Duralex in navigating these challenges reflect a commitment to overcoming adversity and pursuing a sustainable future in the glassmaking sector.

 

 

Source: Duralex with additional information added by Apazone

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