Sarkozy criticizes Molex for failed French plant sale

French President Nicolas Sarkozy criticized Molex Inc., a Lisle-based manufacturer, saying it has hindered the sale of a site in France.

"A big American group has a right to close its units," Sarkozy said today at a roundtable in the western town of Caligny. "But it is not fair play to leave and do everything you can to block the purchase or any competition. If there is a buyer, the state will support the buyer."

Molex, which makes electronic components for carmakers Renault SA and PSA Peugeot Citroen, has faced labor unrest and strikes at its French operation in recent months after announcing a plan to close the site.

Industry Minister Christian Estrosi yesterday urged Molex to reach an agreement on the sale of its site at Villemur-sur-Tarn by next week or face a government-orchestrated boycott of its products by carmakers. He said the government is ready to "fully" finance the acquisition by an unidentified buyer.

The French government brokered a meeting last week between Molex management and an unidentified private-equity firm for the site in southwest France, which the U.S. company plans to close.

Molex says the private-equity firm's business plan for the Villemur plant and its employees lacks the necessary capital investments to make the factory viable.

"Molex regrets the false hope being created on the possible redevelopment of the site," the company said today in a statement. "Until now, no company has proposed a credible, viable plan," it said.

Karine Clauzade, a Paris-based spokeswoman for Molex, said the company declined to comment on Sarkozy's remarks.