Pilkington Plants in Finland and Sweden Face Closings and Layoffs
October 26, 2012

by Casey Neeley, cneeley@glass.com

Pilkington Automotive is in discussions to shut down the company's Ylöjärvi, Finland and Landskrona, Sweden plants. These closings will leave an estimated 420 workers unemployed.

In a release issued today by the NSG Group (NSG), Pilkington's parent company, officials say "The Group is taking action to reduce capacity and output to match the requirements of its customers, consistent with its restructuring program, originally announced on February 2, 2012. These closures are expected to be completed during the calendar year 2013."

After reports of slow automotive sales, NSG announced that they were planning to reduce overhead costs. "As part of its cost reduction plan, the Group is targeting a reduction of 3,500 employees in its global headcount," said officials in the February 2 release. "A significant part of this reduction will come from overheads; management and staff."

"Automotive volumes in Europe, representing almost half of the Group's total automotive business, fell during the third quarter, as consumers, faced with a deteriorating economic outlook, increasingly sought to postpone significant spending decisions," said NSG officials in February.

NSG officials note in the statement that the recurring profit benefit from the closings will total an estimated 18 million USD (1.4 billion JPY, 14 million EUR).

The Ylöjärvi plant, which is responsible for laminating manufacturing, anticipates 320 employees will lose their jobs in the closing. The Landskrona plant, toughening glass manufacturer, expects 100 jobs will be cut.

Finnish news site Yle Uttiset reports that some Ylöjärvi employees staged a walk-out today in protest of the closing.

This story is an original story by AGRR™ magazine/glassBYTEs.com™. Subscribe to AGRR™ Magazine.
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