Foggia, the former Tozzi plant closes: 114 employees at home

Foggia, the former Tozzi plant closes: 114 employees at home
Foggia, the former Tozzi plant closes: 114 employees at home
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The former Tozzi Sud in Foggia, taken over in 2019 by the American company G&W Electric, is destined to be closed. Cold shower today for 114 employees, who remained outside the gates of the plant in the Asi area. On 17 January, the G&W shareholders’ meeting resolved to activate the liquidation procedure and dismiss the Local Units of Foggia and Peschiera Borromeo.

The company announced yesterday the opening of the collective redundancy procedure. Despite considerable efforts by the sole shareholder, huge losses were recorded in the three-year period 2019-2021 and the forecast is completely similar for the 2022 financial year”. The pandemic has helped to exacerbate the situation in society, with an unpredictable and negative impact on production and on economic and financial performance”. The picture was further compromised by the energy crisis and the shortage of raw materials which translated into a sharp rise in prices, not only for oil.

The company deals with the design, production and marketing of electrical panels and electrical equipment in general. It has 114 employees in the Foggia factory, of whom 101, mainly manual workers, hired on permanent contracts, and 7 employees at the Peschiera Borromeo unit, dedicated to research and development and sales (two have resigned and work will end on January 31).

When G&W acquired the holding of the Tozzi Electrical Equipment company, aware of the challenges to be faced in order to revive the company and make it profitable”trusted that the operations of the Local Units could be expanded and enhanced”. At the time, offices were operating in Piacenza for research and development activities and in Milan San Donato for sales activities, later replaced by the Peschiera Borromeo unit. But since the first months of activity, today highlights the Chairman of the Board of Directors David Allen Gizewicz, the numerous products of the acquired company unexpectedly required considerable reworking and numerous checks before being placed on the market, which involved a huge expenditure of financial and non-financial resources. This persisted over the years until the decision to put the company into liquidation”.

Production costs, in the three-year period 2019-2021, they have always been enormously higher than the production value; the non-existent marginality – writes David Allen Gizewicz – leaves no prospects of trend reversal”. Then the recession caused by the most acute phase of the pandemic materialized. As if that weren’t enough, the crisis opened by the war in Ukraine has generated difficulties and delays in supplies and a further increase in production costs.

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The sole shareholder is not willing to take further losses, in the absence of real competitive advantages for society” and in the absence of prospects for economic returns on investments. Various solutions have been actively explored that would allow the continuation of production activities without repercussions on employment levels, with negative results”, let G&W Electric know. The decision to put the company into liquidation it was inevitable”.

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The dismissals will be made according to the technical-organizational criterion related to the cessation of activities, therefore according to the orders already accepted to be processed. There is no possibility of usefully resorting to the use of alternative tools to dismissals, both from a technical-organizational and a productive point of view”clarifies the president. The company – reads the communication – reiterates its willingness to start a discussion on the procedure activated in order to reach a final shared solution”.

The glorious history of the former Tozzi, over 50 years long, now seems to be at the end of the line.

The article is in Italian

Tags: Foggia Tozzi plant closes employees home

NEXT Borsa Italiana, the comment of the session of 2 February 2023