Continues Restructuring, Reduction in Capacity
Nippon Sheet Glass, the parent company of Pilkington, has announced that its restructuring, which began in January, continues, and the company has reduced its automotive glass production capacity in numerous plants in Europe and North America.
In addition to the previously announced closure of the auto glass plant in Eisenerz, Austria, the company also has reduced its laminating capacity in Ylöjärvi, Finland. The company also is working to close its laminating operation in Kings Norton, United Kingdom, and another plant in Braunschweig, Germany.
NSG also will reduce its capacity for sidelite production in Sagunto, Spain. Other reductions have been made at Orja, Sweden and San Salvo, Italy, according to today's statement from the company
In addition, the company is considering reducing its overhead in its automotive corporate functions in the United States.
In North America, the company has reduced its staff at its Collingwood, Canada, plant, as was previously announced. (CLICK HERE for related story.)
NSG also has reduced production capacity at facilities in South America, Japan, and Asia.
"In China, these include a reduction in laminating capacity at Tianjin and capacity reductions in Changchun and Guilin," reads the statement from the company.
Finally, NSG will be suspending production indefinitely its automotive float plant at Lahti in Finland.
The goal of the company's overall restructuring is to "protect the business in the short term and to re-establish profit growth from FY2011 onwards."
NSG, however, does have some hope for some of the automotive stimulus programs throughout the world.
"Automotive markets, particularly in the developed markets of North America, Europe and Japan, have demand levels for new vehicles at around 35 percent below the prior year, although some individual government initiatives are beginning to have a positive effect," reads the statement. "This is not expected to improve until the second half of FY2010 at the earliest."
However, the company believes the automotive glass replacement market
"continue[s] to hold up reasonably well."
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