Canton of Valais pays interest for Novelis
Published: Friday, Nov 15th 2024, 14:20
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The canton of Valais is assuming the interest on the guarantee for the Novelis aluminum factory, which was hit by the storms in the summer to the tune of three million francs. The Grand Council decided in favor of this solution on Friday after a long debate. The vote was very close, with 65 votes in favor, 63 against and one abstention.
The guarantee itself, amounting to CHF 100 million, was largely undisputed among the members of parliament. However, the assumption of interest by the canton caused lengthy discussions. Just the day before, the cantonal parliament had spoken out against it. In the end, however, the Grand Council reached a compromise: the state will pay the interest, but Novelis will be subject to additional conditions.
The compromise was possible because the center agreed with the left of the Council. The latter declared its willingness to support a state takeover of the interest, provided that Novelis undertook to retain 85% of jobs in return, and not 75% as had been agreed at the first reading on Thursday.
State Councillor Christophe Darbellay (center) welcomed this "deal" and emphasized in particular that it was not the three million francs that would cost the canton dearly, but the "inactivity" towards Novelis and its 540 jobs.
"Horse trading" or "sleight of hand"
Many MPs did not agree with this regulation and described it as "horse-trading" or "sleight of hand". In their opinion, the assumption of interest represents a "dangerous precedent" and "inequality" compared to other companies whose loans are guaranteed by the state.
Flooding after days of heavy rainfall paralyzed large parts of the industry in Sierre and Chippis last summer. Companies such as Novelis and Constellium, which specialize in aluminium products, had to shut down their operations for months.
The multinational company only partially resumed production at the Sierre site at the end of September - three months after the devastating storms. In August, the company management estimated the total net impact of the costs incurred on cash flow after insurance benefits at CHF 70 to 80 million.
©Keystone/SDA
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