Storm in Sierre VS costs Novelis 70 million francs
Published: Friday, Aug 16th 2024, 11:20
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Seven weeks after the storms in Valais, work is progressing at the Novelis aluminum factory in Sierre VS so that operations can be resumed. The disaster is expected to cost the company around 70 million francs.
The company expects to start rebuilding the facilities and preparing for the tests and commissioning of the hot rolling mill "from mid-August", according to a statement. From September, in addition to continuing the thorough cleaning, it will gradually start up the other main machines.
The multinational company supplies the automotive industry throughout Europe. To minimize the impact on customers, Novelis Europe activated its entire production system to ensure business continuity, according to a statement.
Novelis plans to bear costs for repairs, cleaning, business interruption and other costs "until the factory can resume operations". The company estimates the total net impact on cash flow after insurance to be 80 million US dollars (70 million Swiss francs).
Shortly after the storms, the canton of Valais announced protective measures for the "strategic location" of Sierre. In particular, it undertook to simplify procedures in order to commission companies to raise two bridges and excavate the Rhone bed as quickly as possible.
According to Valais Minister of Economic Affairs Christophe Darbellay, a plan should be defined by the end of the summer. Novelis wrote in the press release that it was waiting "with a certain impatience for the decisions and measures" that would follow these "promising" announcements.
©Keystone/SDA
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