Approximately 5000 workers at French tableware group Arc International have been placed on reduced hours as the company bids to pay back a bank loan. Arc needs to pay back an 80M/Euros debt to its bank and has launched an urgent action plan to reduce costs. Jose-Maria Aulotte, Arc's Senior VP, Corporate Human Resources & Communication, said the company had introduced a three-point action plan to save money. These are stock depletion, an investment freeze, and to cut operational costs. The stock depletion will be implemented at all its sites worldwide, while its French sites will be affected by cuts to operational costs, such as reduced working hours and cuts to expenses. Problems emerged at the begging of September and in response the family-run firm replaced its President, Guillaume de Fougieres, with Partick Puy, a known trouble shooter in France with experience of rescuing companies in difficulty. It also means its furnaces will operate at a reduced output. Arc is talking with the French government to ensure workers receive their salaries through government subsidies. Mr Aulotte said the problems had been caused by the financial crisis, and the length of the crisis, particularly in Europe. In a recent interview with Glass International, he said Arc had been affected by competition from cheap imports from companies in developing nations.
