Molex, 'outraged' by France, vows to limit severance talks

Molex Inc., a U.S. manufacturer, said it was "outraged" by French government criticism over its handling of a plant closure and said it may limit severance talks with employees.

French Industry Minister Christian Estrosi said in a Sept. 2 statement that he was ready to ask carmakers to suspend orders to Lisle-based Molex if the company didn't negotiate in "good faith" about the possible sale of a plant in Villemur-sur-Tarn, France that Molex plans to close.

"We are outraged by the public statements of Minister Estrosi," Molex Chief Executive Officer Martin Slark said in a letter to Finance Minister Christine Lagarde obtained by Bloomberg News. "This does not appear to be the actions of a government that supports international trade, foreign investment, employment and the rule of law."

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

The French government brokered a meeting last week between Molex management and an unidentified private-equity firm about the possible purchase of the factory in southwest France. Molex said the firm lacked an adequate business plan for the plant.

The government has sought to mediate between Molex and the factory workers, a process the company says was undermined by Estrosi's comments.

"You should know that our willingness to fund a social plan or other activities with funds from outside of Molex Automotive SARL has a short window," Slark said. Molex regards Sept. 15 as the deadline for mediation for workers over severance, he added.