Paul Wurth, a flagship of Luxembourg’s heavy industry, is expected to go under complete German ownership, with German Group SMS already owning 60% of the company. The Luxembourgish government announced that it will sell its 40% stake.
Trade unions LCGB and OGBL are concerned that a Luxembourgish “flagship”, a company with enormous prestige and heritage will now go under foreign ownership. Robert Fornieri of LCGB express regret towards this decision.
He lauded the company’s good track record regarding working conditions and stressed that over 500 workers are still employed by Paul Wurth in Luxembourg. The trade unions worry that some of these jobs may be relocated after the takeover. Fornieri demands clarity for the company’s employees.
However, the takeover may also have benefits. Fornieri said that SMS is a leading force in the market and will allow Paul Wurth to carry out more research to make strides in the development of “green steel”
Kevin Dechmann of OGBL wondered why the Luxembourgish state is selling its shares and what that will mean for jobs in the Grand Duchy. These will be safe until 2023, but no agreement has been reached for the time thereafter.
What is causing concern is that SMS is currently in a restructuring phase. Dechmann said that recent experience shows that whenever restructuring is mentioned it means bad news for local workers.
Both trade unions are now seeking to meet with company representatives and in particular with the responsible minister.
Following the financial and economic crisis of 2008, the state bought shares in Paul Wurth. In 2012 SMS acquired a majority stake in the company.
Government sells 40% of Paul Wurth shares, according to Wort
