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Planned Reduction in Architectural Float Glass Capacity in Europe (Sweden and Italy)

Post Time:Nov 09,2012Classify:Industry NewsView:110

The NSG Group has informed employee representatives in its European Architectural Glass business of its intention to reduce its production capacity as below.

 

1.Sweden

(1) Outline
    Action:  Closure of a float line
    Location: Halmstad, Sweden
    Facilities: Architectural float line
    Number of employees affected: Approximately 230 persons

(2) Rationale and outline of the proposal
    The Group is taking action to reduce capacity and output to match the requirements of its customers, consistent with its restructuring program. The proposed action is to right-size the capacity to further reduce fixed cost base. The closure of the float line is expected to be at the end of March 2013.

(3) Estimated costs of this decision
    (a)Total cost:  Approximately EUR 64 m (JPY6.4 bn)
    (i)Cash expenses: Approximately EUR21 m (JPY 2.1 bn)
    (ii)Non-cash charges: Approximately EUR 43 m (JPY 4.3 bn)

(4) Impact on operations
    This action is anticipated within the Group’s previously announced forecast for the current financial year and no change to that forecast is therefore expected as a result of this announcement.

2.Italy

(1) Outline
    Action:  Closure of a float line
    Location: Porto Marghera, Venice, Italy
    Facilities: Architectural float line 
    Number of employees affected: Approximately 140 persons

(2) Rationale and outline of the proposal
    The furnace is currently in a state of 'hot-hold', as announced on 6th July 2012. Having regard to the continued challenging conditions within the European architectural market, the Group proposes to discontinue the 'hot-hold' and close the line.
The closure of the line is expected to be effective from January 2013.

(3) Estimated costs of this decision
    (a)Total cost:  Approximately EUR 16 m (JPY1.6 bn)
    (i)Cash expenses: Approximately EUR16 m (JPY 1.6 bn)
    (ii)Non-cash charges: nil

(4) Impact on operations
    There is no material impact arising from this action on the Group's financial outlook for FY2013.

Source: http://www.glassonweb.com/news/index/17616/Author:

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