Renault is to Invest €85 Million in 'Fonderie de Bretagne' Foundry

PARIS – July 18, 2011: Renault will be investing in the foundry to modernize the plant, buildings and facilities. The main investment item is a new production line with a capacity of 40,000 tons per year, to replace the existing SPO line, the plant’s main casting shop, which currently accounts for 70% of business. With the new production line, the foundry expects a substantial performance improvement. Production startup for the new ‘spheroidal’ graphite line, mainly making chassis parts (stub axles, arms) and powertrain parts (crankshafts and differential casings), is scheduled for 2014, with build-up to full capacity by 2015.

Investments will also be made in improving safety and working conditions (roofs, heating, extraction, gantries, etc.), quality (test systems), and environmental preservation (soil, air and water protection, etc.).

‘Fonderie de Bretagne’ will also be continuing its firm commitment to personnel training, at a rate of one week per person per year; training expenditure is estimated at €2 million over the next five years.

On top of this wide-ranging investment plan, the foundry will naturally be endeavoring for recovery and business development through rigorous implementation of the Renault Production Way and workforce’s commitment.

Key dates in the project schedule start with a study phase in 2012, followed by substantial investment in 2013, startup of the new line in 2014, and build-up to full capacity by 2015.