Guido Dumarey takes over French GM factory and its 1 000 workers

Flemish businessman Guido Dumarey has reached agreement on the takeover of the General Motors transmission factory in Strassbourg. The site, which also boasts a research and development division,  accommodates almost 1 000 employees. Dumarey, who has gained a reputation for taking over ailing technology businesses, has bagged a deal to produce new energy-efficient 8-speed gearboxes for the German powerhouse ZF. General Motors, ZF and Dumarey’s holding Punch Metals International remain tightlipped until they have clinched the deal. The next hurdle to take is the approval of the GM Strasbourg works council. The staff will be informed during an extraordinary works council tomorrow. The unions, which have meanwhile received information, are pleased with the prospect of a new industrial project in view of the threatening closure of the factory. A few years ago GM walked out on a deal with Punch Metals International. Now, just over two years later, it seems that Dumarey is geared for success. If all goes well, the deal will be in the bag by 21 December. The takeover agreement stipulates that all employees will retain their jobs and wages. This is partly thanks to GM’s guarantee that it will take 200 000 transmission systems each year for the next two years. This translates as just over 70% of the production capacity of 280 000.As from 2014 the company can look forward to a new 10-year contract for the manufacturing of 8-speed gearboxes at the Strasbourg factory for ZF, a leader in the field of gear wheels. According to Roland Robert of the CGT trade union an additional 150 million euro investment will be needed for this contract. It remains to be seen how Punch Metals International manages to finance this sum. Union reports suggest that Dumarey may take over the factory at a symbolic one euro price tag. He may also use a 10 million euro capital increase and the cash GM left in the business, which is better than the alternative of a closure that, according to the unions, could cost well over 200 million euros. If the takeover takes place, France will become the hub of the new business cluster Dumarey is building. Last year he acquired the family business JUY, a supplier to the sector of heavy-duty machinery such as bulldozers, excavators and steeplejacks in northern France. Some months ago he also bought a forklift truck factory in the same region from Still, a division of the German Kion Group. The production of forklift trucks was stopped and staff production capacity was used to produce metal components for the trucking and vehicle industry. Thanks to these two takeovers, Punch Metals International, which also has outfits in Slovakia, Hamont in Limburg and Roeselare in West Flanders, earns a consolidated turnover of more than 73 million euros. The group employs a permanent staff of about 440.