Its aim was to become European market leader in the development and production of moulds for injection moulding and compression moulding of plastics. But the dream of family-run Sermo (F-85607 Montaigu; www.sermo.fr), did not last very long. The group is now reported to be in the process of sweeping restructuring due to economic troubles.

Reasons for the predicament are seen as high production costs (mainly labour) and increasing competition from Asia and eastern Europe. Reports say the two main production centres in France – the home base at Montaigu and the technical centre in Aigrefeuille-sur-Maine – are facing closure. A French administrative court has ordered both to be restructured, while providing protection for the creditors. Management declined to comment on the situation to PIE.

At the end of 2003, Sermo closed its loss-making operation in Brazil, and this was followed in mid-2004 by its plant at Sable-sur-Sarthe, France, which employed 98. The intention was to shift production from the French site either to Poland or to India, where Sermo had acquired, for around EUR 1m, full ownership of Sermo-PM India Ltd., the 50:50 joint venture it founded in 2002 with Voltas, a subsidiary of the Indian industrial group Tata.

After a loss in 2002, Sermo´s earnings did not improve in 2003. With sales of EUR 67m, Sermo put its operating loss for that year at EUR 1.6m. The company employs 900 people worldwide, 440 of them in France. There are two plants in Bydgoszcz in Poland, and Sermo also has service centres in the UK and Sindelfingen, Germany. Its customers are for the most part Tier 1 suppliers to the automotive industry.