After the failure of negotiations for its takeover, Fonderie de Bretagne considers itself “coldly executed by Renault”

A hard blow for the Western economy. La Fonderie de Bretagne, which employs 350 people in Caudan (Morbihan), announced on Friday the failure of negotiations with a view to its takeover by the Private Assets fund, accusing Renault of having refused to validate the terms of the draft agreement.

The Fonderie de Bretagne (FDB) was “coldly executed by Renault Group on the eve of Christmas,” the company wrote in a press release. “This unfair decision condemns the feasibility of the Fonderie de Bretagne takeover project and will cause the closure of the company in the very short term,” she added.

Renault, principal client

In 2022, Renault sold FDB to the German investment fund Callista Private Equity. But it remained its main customer, representing 95% of its turnover in 2024.

The Fonderie de Bretagne, whose employees produce cast iron parts for suspensions and exhausts, began negotiations in July with the German investment fund Private Assets for its takeover, while the factory is in serious deficit.

The Private Assets fund, already owner of a group of foundries in Germany and Spain, Procast Guss, has already committed to bringing 11,000 tonnes of production to the workload plan, according to FDB management.

“2.9 million euros were still missing and, above all, there was a lack of visibility on the volumes ordered by Renault from FDB for the years 2025, 2026 and 2027 to finalize an agreement,” indicated the Fonderie de Bretagne in its press release, emphasizing that “it is essential (…) that the decline in orders from Renault be controlled”.

Public subsidies promised

According to the press release, Renault Group refused Private Assets’ latest proposal “because it has already planned to relocate production at Fonderie de Bretagne and prefers to sacrifice 350 jobs in France rather than reverse its strategy.”

The general management of Fonderie de Bretagne expressed “its deep disgust and anger at the cold cynicism of Renault, which waited for the political crisis and Christmas Eve to definitively confirm its refusal to make the slightest concession”, in the press release.

The State and local authorities had committed to financially supporting FDB to the tune of 16 million euros in addition to the 2.5 million euros from France 2030, according to the office of the Ministry of Industry.

“Despite this, Renault now refuses to provide sufficient visibility on the market share of their orders allocated to FDB. However, this visibility is necessary to enable any industrial recovery project,” indicated the same source.

“Renault must now face its responsibilities and assume the consequences of the decisions that will be taken,” added the entourage of the resigning Minister of Industry Marc Ferracci.

Contacted, the Renault group could not immediately be reached.

Heir to the Forges d’Hennebont, created in 1860, the Fonderie de Bretagne has been based in Caudan since 1965. It produces chassis parts, engine parts and gearbox parts.