Latécoère Presents Transformation Plan to Ensure Long Term Bus. Sustainability & Future Development in Covid-19 Environment
September 25 2020 - 4:30AM
Business Wire
Regulatory News:
The Latécoère Group (Paris:LAT) today presented to its
employee representative bodies the strategic plan for its
transformation and organization in France which was approved by its
Board of Directors on 24 September 2020.
This plan entails specific actions that are intended to
safeguard the Group’s future as it navigates this deep crisis.
Specifically, it is focused on aligning its manufacturing footprint
to meet the Group's strategic challenges and ensure that its
engineering and industrial capabilities in France are maintained in
the long term. In order to adapt its workforce to the volume of
activity and the slow recovery expected in air traffic in the
coming years, the plan will result in the reduction of 475
positions out of the 1504 that the Group has in France at 31 July
2020.
The information-consultation process of Latecoère’s employee
representative bodies should continue until the beginning of
2021.
Notwithstanding positive commercial dynamics in 2019, Latécoère
was managing major financial challenges in a competitive market
environment prior to the Covid crisis. With the onset of the Covid
crisis in March 2020, the -40% drop in production rates of our main
customers resulted in a corresponding -40% decrease in the Group's
activity. This is expected to continue into next year, with no
return to pre-Covid levels expected before 2025.
To secure the company’s future, the Group took immediate action
to reduce operating costs and adjusted its workforce outside France
to this new level of activity.
Further to these actions, Latécoère is announcing today a
transformation plan to align its organization in France with this
new level of activity while preserving its industrial presence. It
is intented to reinforce the Group’s agility by increasing the
autonomy and competitivess of its manufacturing sites in order to
capture new markets, diversify its activities, participate in the
consolidation process at work in the aeronautics sector, and
participate in the design of the decarbonated aircraft.
The transformation plan as presented today to Latécoère's
employee representative bodies takes into account the results of
extensive work with the ministries responsible for employment,
industry and transport to make the best use of the measures
resulting from the recovery plan. This joint work has enabled
Latécoère to preserve more than 150 jobs and avoid site
closures.
This transformation plan allows Latécoère to maintain its
industrial footprint in France while enabling the increased
specialization of its sites in order ot make them European centers
of excellence in areas such as space and after-sales. These changes
will position Latécoère to increase production and competitiveness
necessary for its future development when market conditions
improve.
Philip Swash, CEO of Latécoère said, “We know we are making
strong decisions. They are necessary. Everyone at Latécoère's has a
role to play to make this transformation plan an opportunity to
strengthen the Group’s competitiveness. These actions allow us to
continue investments in our facilities, R&T activities and the
development of our people while also providing great value and
service to our clients. We are determined to be part of tomorrow's
aircraft adventure.”
Latécoère is deeply committed to the culture of social dialogue
and wishes to encourage exchanges with the social partners in order
to reach an agreement on accompanying social measures, in
accordance with the spirit of the Employment Security Act, while
limiting the impact on employment by maximizing the use of State
support measures.
About Latécoère
Latécoère is a tier 1 partner to major international aircraft
manufacturers (Airbus, Embraer, Dassault, Boeing, Bombardier and
Mitsubishi Aircraft), in all segments of the aeronautical market
(commercial, regional, corporate and military aircraft),
specializing in two fields:
- Aerostructures (58% of total revenue): fuselage sections and
doors.
- Interconnexion systems (42% of total revenue): onboard wiring,
electrical harnesses and avionics bays.
At 30 June 2020, Latécoère employed 4,714 people in 13 different
countries. Latécoère, a French corporation (société anonyme) with
capital of €189,637,036 divided into 94,818,518 shares with a par
value of €2, is listed on Euronext Paris - Compartment B. ISIN
codes: FR0000032278 - Reuters: LAEP.PA - Bloomberg: LAT.FP
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version on businesswire.com: https://www.businesswire.com/news/home/20200925005112/en/
Press contact Latécoère : Pierre-Jean Le Mauff (Taddeo)
/ +33 (0)7 77 78 58 67 teamlatecoere@taddeo.fr
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