Zeledyne to Exit Commercial Glass Business
January 27, 2010

Tulsa, Okla.-based Zeledyne announced today that it will exit the commercial glass business this spring.

"The continuing difficulties in the economy have led to a significant decrease in our commercial glass business and we have decided to exit this business," says Robert Price, Zeledyne chairman.

Company spokesperson Della DiPietro advised the move is effective March 28.

"The construction industry has taken a big hit and we had a significant loss of revenue last year, and we, as many in the market, expect that the severely depressed construction industry will continue to suffer in the future," DiPietro told www.glassBYTEs.com™ this afternoon.

The company's automotive business will not be affected by the closing of the commercial line, DiPietro said.

"That plant has fabrication operations for automotive glass and those will continue," she said. "The plant's not shutting down."

One industry source, who wished to remain anonymous, commented on the announcement, "One of Zeledyne's challenges was that glass manufacturers are moving to more energy-efficient offerings including solar, and that requires a huge investment that wasn't feasible in this economy."

"There is some speculation that the closing also positions Zeledyne for a possible sale of its automotive glass holdings. Zeledyne has one ace in its hand with its OE Ford contracts, which would make a sale attractive. The other thing this closing does is it reduces capacity in the architectural glass industry, which in the long run might make for a healthier industry," said the industry insider.

Zeledyne announced its purchase of Ford Motor Company Automotive Components Holdings (ACH) glass business in April 2008. (CLICK HERE for related story.)

Stay tuned to www.glassBYTEs.com™ for updates as they are available.

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