In marketing, we call this “the wow effect”, this magical moment when the announcement of an advertising campaign or the release of a new product causes this little thrill, this intoxicating feeling close to astonishment. In politics too, the wow effect is sought. For several days, the Elysée has been increasing the pressure, dribbling out information. This Thursday, November 23, in Chartres, during a trip on the theme of reindustrialization, Emmanuel Macron is expected to announce the largest industrial investment in the health sector in the last five years, that of the Danish laboratory Novo Nordisk. A figure worth several hundred million euros and which could even be close to a billion… Wow! Already, last January, this specialist in diabetes treatments had invested 130 million euros in its historic factory in Eure-et-Loir to triple its manufacturing capacity for insulin injector pens. Today, it would be a question of creating new production lines dedicated to new therapeutic areas, and why not to the famous Wegovy, an appetite suppressant derived from a drug against diabetes, which is enjoying dazzling worldwide success.
While France has made health, alongside electric batteries, semiconductors or hydrogen, one of the key sectors in the renewal of its industrial policy, this announcement is shocking. With the gigafactories of ProLogium in Dunkirk (5.2 billion euros of investment), STMicroelectronics in Crolles (7.5 billion euros), those of Eastman and even Verkor, it is the image of an attractive and conquering France which is taking shape. A France which is finally reconciled with its factories.
So much for the beautiful story. The truth is – a little – drier.
Firstly because the European competition to attract these gigantic projects is formidable. It is finally in Germany that another pharmaceutical laboratory, the American Lilly, a competitor of Novo Nordisk, announced, a few days ago, an investment of 2.3 billion euros. And it is Hungary which should host the mega-electric car factory of the Chinese manufacturer BYD, a project over which the French government was salivating and which promises to be as important as that of Tesla in Berlin.
The race for subsidies
In this European battle, the amount of public subsidies often makes the difference. To attract the Taiwanese ProLogium, the French state and local authorities will have promised some 1.5 billion in subsidies. And when Berlin won Intel’s 30 billion euro semiconductor project in June, the German government put nearly 10 billion in gifts on the table…
Then, because behind the highly publicized announcements of these mega-factories, the reality of the reindustrialization of France is also more contrasted. According to the latest data from the Trendeo firm, factory openings have certainly been greater than closures for two years, but the balance remains lilliputian. Worse, the numerous appeals from local residents and environmental associations are still pushing some bosses to throw in the towel. Thus, the Le Duff group gave up last spring on setting up its new Bridor factory in Brittany: the croissants from this French agri-food giant will be baked in Portugal. Recently, in Aisne, Danish Rockwool’s project to build a rock wool manufacturing plant sparked the anger of residents. And too bad if this material is very useful for insulating buildings… So, reindustrialization must still make its way into people’s minds.