Coronavirus forces Recticel to shutter European production, cut management pay

Brussels – Temporary layoffs and a 30% cut in management pay are two of Recticel's responses to the coronavirus outbreak at its plants in Europe.

Olivier Chapelle is the company's CEO. He said: 'Our number one priority is the health and wellbeing of all our employees. As the pandemic is causing extraordinary challenges to all of us, we are taking all necessary precautionary measures to protect our employees and our business. I remain confident that we shall overcome today’s crisis without compromising our long-term strategy of sustainable development.'

The company said that its automotive activities in China are returning to normal, but that part of its European business has shut down temporarily. Most European OEMs have closed their plants. In other business segments demand is falling rapidly as countries impose lockdowns. Recticel is reacting by cutting production or closing sites temporarily. 

Workers are being laid off temporarily and management is taking a 30% pay cut 'as a token of solidarity.' 

Like other companies managing cashflow, non-essential expenditure has stopped, and capital projects are on hold.

Recticel said it has good liquidity, with EUR 150m of credit which can be accessed quickly if needed. It also has a factoring programme which allows it to convert debts into cash and a number of credit lines. 

Chapelle added: 'Finally, I want to express my deep respect and gratitude to our very dedicated employees as well as to everybody fighting the effects of this pandemic.'