France rescues Gupta foundries

PARIS: France has provided a 10-million-euro ($12-million) loan to Alvance, part of the steelmaking GFG Alliance owned by Indian-British billionaire Sanjeev Gupta, to avoid the liquidation of three foundries, the economy ministry said Monday.

The loans will go to Alvance Poitou Fonte, Alvance Aluminium Poitou and Alvance Aluminium Wheels, which mainly serve the domestic auto industry.

They have been hurt by the shift away from diesel engines as well as foreign competition.

The Paris Commercial Court placed the facilities, which employ some 850 staff, under bankruptcy protection on April 20. The ministry said the funds would help ensure the operation of the facilities for three months while buyers are sought.