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CSR cuts 150 jobs from its glass business

Post Time:Mar 11,2013Classify:Industry NewsView:277

BUILDING products company CSR is cutting 150 jobs from its glass business in response to the high Australian dollar and low construction activity.

CSR will close its glass manufacturing facility at Ingleburn, in Sydney's south west, in July.

It will also merge a processing plant at Wetherill Park, in Sydney's south west, with a nearby plant in Erskine Park by January 2014, CSR said today.

"It is estimated that headcount reductions will be in the order of 150," the company said in a statement.

House construction activity is also at a low point and is expected to recover at a slower pace than previously expected, it said.

"CSR is implementing a major restructure of its Viridian glass operations to reflect the reality of the market, improve the short-term performance of the business and position Viridian to compete successfully in the future," CSR managing director Rob Sindel said.

The redundancies, site closure and relocation are expected to cost the company about $34 million, but deliver an annual boost of $27 million in earnings from 2015.

CSR has also downgraded its profit forecast for its fiscal year to March 31.

Because of the weak performance of its Viridian glass business and the timing of property sales, CSR now expects its net profit after tax, excluding costs from restructuring, to be in the range of $30 to $34 million.

That is down from previous forecasts of a profit in the range of $35 million and $45 million.

Source: http://www.heraldsun.com.au/business/companies/csrAuthor: shangyi

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