Bénéteau: Factory closures, elimination of positions throughout the group

Bénéteau Group's sailboat factory

After the Group Committee meeting on 8 September 2020, we know more about the Bénéteau Group's industrial projects. The management is informing BoatIndustry of the consequences for employees and the various plants of the effects of Covid-19, but also of the strategic plan for 2020-2025.

A global policy of adjusting ship production

The Bénéteau Group brought together its representative bodies and those of its French subsidiaries on 8 September 2020 to launch negotiations on a long-term partial activity agreement and the implementation of job protection plans (PSE). Announced in July, the reduction in production capacity of the world leader in the yachting industry is starting to take concrete form in France, Poland and Slovenia, after having started in the summer in the United States.

4 Bénéteau plants at a standstill around the world

The Bénéteau Group is going to mothball 4 production sites around the world. The Marion site in the United States has been dormant since July 2020. It is joined by the Slovenian factory, acquired with Seascape, which produces the small First sailing yachts. The Challans and Noirmoutier sites in the Vendée region of France, respectively producing end-of-life models, more than 5 years old with few units sold annually, and NC and Swift Trawler motor boats. "These are the sites where the decline in activity has been the most marked, where a slower and less strong recovery is expected. The configuration of these sites and the obsolescence of some of them makes them less easily convertible to accommodate new production. The objective is to saturate the sites in order to absorb fixed costs. They are put on hold pending a resumption of activity or a specific project. The Cheviré site had thus remained dormant 10 years before the arrival of Figaro 3," explains Mirna Cieniewicz, head of communications for the Bénéteau Group.

Usine Bénéteau de Marion, fermée en juillet 2020
Bénéteau de Marion plant, closed in July 2020

The sites at Monfalcone in Italy (builder of the CNB and Monte Carlo Yachts, two brands that the group wishes to divest), Delphia in Poland and Poiré-sur-Vie in the Vendée will be idled.

Between 8 and 17% job losses

The consequences for employees are likely to be significant. The Bénéteau Group is announcing a workforce reduction of between 710 and 1,390 people under the terms of the PES and long-term partial activity agreements. Out of a total of 8,361 employees at August 31, 2019, the reduction is between 8 and 17%. Support functions should be particularly affected, with a reduction of 380 to 460 people. "For the 336 operators at the Noirmoutier and Challans plants, the proximity of the Vendée sites enables us to offer internal mobility and not to make any redundancies if they accept. On the other hand, for the indirect production workforce, i.e. management, we cannot offer them all mobility. For the design offices, this is a double consequence of the sites being mothballed and of the strategic plan, with the switch from 12 to 8 brands and the halt in the development of new models for the 4 brands that we wish to sell or operate in collaboration", Mirna Cieniewicz explains.

Difficult to measure at this stage, the consequences of these announcements will be felt by the entire sector and its suppliers, equipment and engine manufacturers, as well as on the nautical employment market.

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