CASE STUDY 12
Site Closure
Accompanying Individual Development and Highlighting the Value of Assets

How can the impact of the closure of a factory be minimised locally? BPI's solution came from experience on the ground - accompany each employee affected and highlight the advantages of the site left vacant to encourage repurchasers.

Context
Withdrawal
This group made leisure products that had considerably evolved over the preceding ten years. The historical site was technically the most difficult to modernise. The decision was taken to close the site to enable production to be centralised in two more recent factories. In an employment pool with over 15% unemployment, the withdrawal had to be conducted so as to limit its impact on a local level. BPI's task therefore began with a short economic development diagnosis followed by the setting up of an information and support system for the 49 employees affected.

Task
Site Needs Repurchaser
The advantage that needed to be highlighted to limit the local impact of the operations was the site itself. Vast and well-maintained, the site's low residual value on the balance sheet enabled the firm to offer an attractive price. The negotiation framework for potential repurchasers was defined in collaboration with the management team. A brochure presenting the site was distributed via a targeted direct mail operation and via BPI's networks.

An Effective Local Network
The consultants from the BPI regional office in charge of contacts with businesses began prospecting for employment offers for the employees preparing for external development. Within this framework, they met the director of a local SME who explained the difficulties he was experiencing - he did not have enough space on his premises to fulfil the storage requirements imposed by the big groups he subcontracted for. He wanted to grow but to remain in the region. The consultant organised a meeting with the company. The second offer resulted from the mailing operation. The project was for a car dealership. The industrial project was selected, as it offered more jobs for the site personnel and better long-term employment perspectives.

Perspectives
A Double-sided Mission
In parallel to the economic approach, the consultants followed the extremely varied development of the employees. Eight of them gave up work for health reasons. The consultants helped them measure the personal impact, in particular the financial impact of stopping work, and helped them build a new organisation for themselves. The employees recruited by the repurchaser experienced probably the most stable situation. However, the transition period was still a sensitive step for them - the "clan" effect made the "grieving period" harder. It was six months before they were able to tell their previous HRM that they had finally "got over it". For those who accepted geographical mobility, the transfer went well. Support set up for partners even enabled certain families to find a better situation than before.

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