The glass manufacturer’s only furnace will be put on standby from Tuesday 1er November for five months.
Making glass is an energy-intensive activity. In this period when gas and electricity prices are soaring, the economic equation is becoming more and more complex to solve for glassmakers. Duralex, the famous glass manufacturer, draws the consequences by putting on standby from this Tuesday, November 1, for at least five months, the only oven of its only factory, located in La Chapelle-Mesmin, in Loiret. “The price of energy usually represents 5% to 7% of our turnover, analyzes José Luis Llacuna, president of Duralex. Today, it is around 40%. It is not tenable. » The glassmaker’s energy bill has gone from 3 million euros last year to 12 million euros this year, the company says.
The situation of Duralex is, it is true, a little particular. After very difficult years and a receivership, the company was taken over in early 2021 by the French Glass House, which also owns the Pyrex brand and is controlled by the investment fund Kartesia. The ambition was to restore the brand to its former glory. At the start of 2021, energy prices were already starting to be high, especially compared to their levels prior to the Covid pandemic. “We then judged the energy prices too high to take long-term contracts”, explains José Luis Llacuna. Unfortunately, the situation has steadily worsened in this area, especially after the launch of the Russian offensive in Ukraine last February. “Since 2021, the price of electricity has been multiplied by 22, and that of gas by 18”, laments the leader. Duralex therefore believes that stopping production is the only solution to “preserving the future of society”.
Partial unemployment measures
Announced at the beginning of September, the site’s standby will not start until Tuesday, November 1. The lapse of time between the announcement of this decision and its implementation is explained by the complexity of the operation: in theory, a glass furnace never stops at the risk of being damaged. This is an argument of glass manufacturers with the government to justify the fact that it is not possible for them to cut their gas and electricity consumption. “The oven will not be stopped purely and simply, but we will keep it at temperature so that it can be restarted”explains José Luis Llacuna, who nevertheless warns that “Zero risk does not exist in this area”. This decision will have consequences for the 250 employees of Duralex, with the implementation of partial unemployment measures. “The employees are all on partial unemployment, and their compensation is set at 95% of their salary thanks to the contribution of the State.“, Details a spokesperson for the company.
Read alsoThe Duralex glassworks taken over by the parent company of Pyrex
The situation is all the more frustrating for the leader of Duralex that the activity was very well oriented, posting an increase of 35% to 40% since the beginning of the year. In 2021, turnover had approached 24 million euros. However, all commercial activity will not be suspended during this production shutdown because Duralex has built up stocks. “As the company now has sufficient and quality stocks, it believes that it will be able to continue its commercial activity normally during this period and thus continue to serve its customers satisfactorily.“Explains the company in a press release. “The site will therefore continue to operate“Said a spokesperson.
The activity will resume next year, promises Duralex. “We have already contracted tariff coverage on electricity, which will allow production to resume in the second quarter of 2023”, already specifies José Luis Llacuna. “The state has confirmed that it will help the company, although it is not yet clear in what form“, also indicates a spokesperson for the famous glassmaker. The other company in the group, Pyrex, is not currently affected by the production restriction measures.