Temporary reduction in Float capacity in UK
As a consequence of the overcapacity that still exists in the European glass
industry, the NSG Group has informed the employee representatives concerned
that one of its UK float lines, “CH2” Float Line in Cowley Hill, will be kept out
of operation on ‘hot hold’ from 3 January 2013. At present it is expected that the
line will remain on hot hold for three months.
This action will allow the Company to reduce stock levels and therefore Working
Capital. It will not impact significantly on the UK market as the Company can
continue to supply from stocks and from “UK5” float line at Greengate, UK.
Local management is in discussions with the employee representatives concerning
manning plans for different parts of the operation during the hot hold, as well as
cost saving opportunities.