EADS may cut four factories in France, four in Germany

23rd February 2007, Comments 0 comments

PARIS, Feb 23, 2007 (AFP) - The European aerospace group EADS, parent of crisis-hit Airbus, could announce next week the disposal of four factories in France, matching cutbacks in Germany, the French newspaper Les Echos reported on Friday.

PARIS, Feb 23, 2007 (AFP) - The European aerospace group EADS, parent of crisis-hit Airbus, could announce next week the disposal of four factories in France, matching cutbacks in Germany, the French newspaper Les Echos reported on Friday.

A factory in Britain and another in Spain could also leave the group, the report said.

It also said that German interests were believed to have abandoned hopes that the central part of the future A350 airliner would be built in Germany.

French President Jacques Chirac and German Chancellor Angela Merkel were to meet in Germany on Friday and the plan was expected to be high on the agenda.

The French government said this week that the plan would cost about 10,000 jobs, but the German government said that this was premature since no final decision had been taken.

The report on Friday said that the divestments would form part of a re-drawn rescue plan for the group which is mired in disputes between France and Germany over how cuts at airliner maker Airbus should be distributed.

The report in Les Echos said that the board of the European Aeronautics Defence and Space Company (EADS) would meet next week and approve the redrafted plan.

It said that the head of Airbus, Louis Gallois, was believed to be proposing to split off four factories in France including one which made seats for aircraft and another which makes light aircraft.

In Germany, four factories would be separated from the group. A factory in Britain and another in Spain might also be disposed of.

The rescue restructuring, known as "Power8", was to have been announced on Tuesday, four months after it was first announced, but then became bogged down in wrangling over the extent and location of cuts.

But at the last minute, on Monday, EADS and Airbus said that they could not make the announcement as planned because of conflicting national interests.

Copyright AFP

Subject: French news

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