The classic amber and green glass cups and plates, famous for being ultra resistant and withstanding any impact, will temporarily cease to be produced. The glassware firm Duralex, creator of the iconic indestructible tableware, announced that it will close its only production plant, located in Orleans, France. As a result of the global crisis, the high price of energy has made the business unsustainable.
After 77 years of existence, the French factory will paralyze its furnaces for at least five months, starting on November 1. It is a measure to protect its delicate financial situation in the face of rising gas prices in Europe, a cost that it is no longer capable of assuming.
“Under normal conditions, the prices of the energy invested in the manufacture of glass represent between 5 and 7% of the energy costs of the billing. Now they are at 46%, 46% of our billing is energy! It is absolutely unfeasible,” he explained. President of Duralex, Jose Luis Llacunain an interview with Catalunya Radio.
The 250 employees of the factory will go on strike, but they will receive at least 95% of their salary during the months of closure. This thanks to the aid of the French government to protect citizens against the rise in inflation.
In the French country, current inflation stands at 5.6% in the French country, while at the European Union level it is around 10%. The provisional closure also responds to the call of the government of Emmanuel Macron to limit industrial energy consumption during the winter.
Will they go back to manufacturing Duralex tableware?
Over the next few months, the court and the company will appoint a bankruptcy administrator to oversee the business. Your debts will be frozen and Duralex will have to submit an updated business plan.
Llacuna ensures that they have enough stock to continue selling “normally” for the next six months and “endure the storm”, but they will not manufacture any more tableware. They will try to resume operations in April 2023, depending on how the energy crisis evolves and the cost of production becomes more affordable.
The president of the brand assures that Duralex and 300 other large European companies are at risk of disappearing due to the energy crisis. He warned that there will be “disasters” due to closures, if no limit is set on the increase in the purchase price for companies.
“If the productive industries of Europe close, where will we go to buy the products that are produced today in Europe? I think everyone knows the answer and that is totally contrary to what we seek politically and industrially”, added Llacuna.
The legendary stained glass window adds several years of bad streak
In 2017, one of the factory’s furnaces was damaged while being repaired and they had to reduce the usual output from 160 tons a day to just 20 tons. Of course, sales plummeted and to date have been unable to recover to 2016 levels.
In September 2020, Duralex went into receivership and was declared bankrupt by a commercial court in Orleans. Four months later, the French group International Cookwarebought the brand for 3.55 million euros with an ambitious commercial and industrial plan to rescue it.
The tableware manufacturer went into bankruptcy proceedings last September due to falling sales. The commercial and marketing director of the company, Frederic Morin Payeexplained that turnover sank 60% During the last months.
This strike could be the prelude to the end of a iconic brand. Duralex was born in 1945, but before that it was a car company called Saint Gobain, in the suburbs of Orleans. They had developed a method to enhance the resistance of vehicle windows. The technique was to use glass tempered at 700 degrees and immediately cool it down, making it super strong.
It was when the company decided to change its business model and dedicate itself to creating the famous indestructible tableware. “Use it as a hammer, drop it, pound it, go from ice to boiling water,” said its advertising of yesteryear.
At its peak, during the 1960s through 1980s, the company employed 1,500 people. Duralex plates, cups and glasses were imported almost to any corner of the planet, becoming a classic of everyday life.
In fact, it is very possible that your mother, your grandmother or your aunts keep some pieces that have lasted them ‘a lifetime’.
Editorial Team The editorial team of EMPRENDEDOR.com, which for more than 27 years has worked to promote entrepreneurship.