PARIS (Reuters) – Factory closures in France are expected to affect “thousands of jobs” in the coming weeks and months, Industry Minister Marc Ferracci warned on Saturday, as the euro zone’s second-biggest economy is mired in a deep manufacturing recession.
WHY IT’S IMPORTANT
Ferracci’s comments, in an interview with France Inter radio, came just days after Michelin and Auchan, two of the country’s largest employers, announced layoffs, sparking worries that unemployment could tick up again after years of improvement.
KEY QUOTE
“Several sectors are in a worrying situation,” Ferracci said, highlighting the chemical, automotive, and metallurgy industries. These difficulties are largely due to “very strong international competition … not always very fair because it is very subsidized in China and the United States”.
CONTEXT
Factory output in France has been on a steady decline, business surveys show. The downturn is amplified by a sharp fall in export orders, geopolitical tensions, and a slowing global economy.
Tyre maker Michelin’s last week said it would close two of its French factories, affecting approximately 1,200 employees, citing low-cost Asian competition and rising energy prices in Europe.
(Reporting by Jean-Stephane Brosse; Writing by Tassilo Hummel; Editing by Mark Potter)
