French government seeks legal action

The French government has referred the situation at Forges de Tarbes, the last French factory producing cannon shells for the Caesar howitzers, to the judiciary. This move comes after concerns were raised about recent management decisions at the company, which have reportedly worsened its financial condition.

DGA monitors financial decline

The Direction générale pour l'Armement (DGA), France's defense procurement agency, has been closely monitoring Forges de Tarbes since this summer. General delegate Patrick Pailloux, representing the DGA, stated that recent decisions have accelerated the company's decline and that a DGA delegation visited Tarbes recently to evaluate its operations.

New ownership raises concerns

Forges de Tarbes was acquired in 2021 by Europlasma, a company backed by the investment fund Alpha Blue Ocean, based in Dubai and the Bahamas. The fund uses a financial instrument called convertible bonds with stock subscription warrants (OCABSA). However, the factory has faced mounting issues, including a recent order from local authorities to improve its safety and compliance by year-end.

Production halts and equipment concerns

Production at Forges de Tarbes was stopped between mid-August and mid-September due to concerns over outdated machinery. Employees have expressed worries about the state of the equipment and the potential impact of KNDS, the Caesar howitzer manufacturer, reclaiming raw materials from the factory. This has led to confusion and calls for government intervention from the workers.

Sale of defense activities planned

Europlasma, which has owned Forges de Tarbes since 2021, is in exclusive talks to sell its defense-related operations to an unnamed French investor for 150 million euros. This move follows the acquisition of Fonderie de Bretagne, which was set for liquidation due to a lack of buyers. The DGA criticized the lack of efforts to secure alternative supply sources for shells, leaving 244 employees without jobs.