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Renault to invest EUR85m in French foundry

ABR Staff Writer Published 18 July 2011

French car maker Renault is planning to invest EUR85m to modernize its Fonderie de Bretagne foundry and develop business in western France through 2016.

The investment comes on top of the EUR39m invested over the last three years, for a total investment of more than EUR120m between 2008 and 2016.

The investment plan includes financial support from national and regional government bodies and is expected to safeguard 400 jobs at the site.

The company will mainly invest in a new production line with an annual capacity of 40,000 tonne, to replace the existing SPO line, the plant's main casting shop, which currently accounts for 70% of business.

Production startup for the new 'spheroidal' graphite line, which mainly makes chassis parts (stub axles, arms) and powertrain parts (crankshafts and differential casings), is scheduled for 2014, with build-up to full capacity by 2015.

A part from the investment plan, the foundry will be aiming for recovery and business development through implementation of the Renault production way and workforce's commitment.

The company said that key dates in the project schedule start with a study phase in 2012, followed by substantial investment in 2013, startup of the new line in 2014, and build-up to full capacity by 2015

Renault executive vice president of manufacturing and supply chain Gérard Leclercq said this investment project confirms the company's industrial anchor in France, consistent with my announcement on 2 February on the group's industrial strategy.