Three of GFG Alliance’s car parts manufacturing units in France filed for bankruptcy on Apr 16. The combined workforce of all three plants is 850 people.
The three units, comprising two foundries in Poitou and an alloy factory near Chateauroux, were part of the GFG subsidiary Alvance Aluminum. The units’ biggest clients were Renault and Peugeot, both French carmakers, according to media reports.
Alvance Aluminum’s other factories in Dunkerque, Duffel, Belgium, and in Lochaber, Scotland are unaffected by the lack of funding because of strong internal cash flows, GFG Alliance indicated per media reports on Monday.
The conglomerate headed by Sanjeev Gupta has been reeling under financial pressure after its chief financier Greensill capital filed for bankruptcy in early March.