PLANNED REDUCTION IN ARCHITECTURAL FLOAT GLASS CAPACITY IN EUROPE (SWEDEN and ITALY)
The NSG Group has informed employee representatives in its European Architectural Glass business of its intention to reduce its production capacity as below.
1.Sweden
(1) Outline
Action: Closure of a float line
Location: Halmstad, Sweden
Facilities: Architectural float line
Number of employees affected: Approximately 230 persons
(2) Rationale and outline of the proposal
The Group is taking action to reduce capacity and output to match the
requirements of its customers, consistent with its restructuring program.
The proposed action is to right-size the capacity to further reduce fixed
cost base. The closure of the float line is expected to be at the end of
March 2013.
(3) Estimated costs of this decision
(a)Total cost: Approximately EUR 64 m (JPY6.4 bn)
(i)Cash expenses: Approximately EUR21 m (JPY 2.1 bn)
(ii)Non-cash charges: Approximately EUR 43 m (JPY 4.3 bn)
(4) Impact on operations
This action is anticipated within the Group’s previously announced forecast
for the current financial year and no change to that forecast is therefore
expected as a result of this announcement.
2.Italy
(1) Outline
Action: Closure of a float line
Location: Porto Marghera, Venice, Italy
Facilities: Architectural float line
Number of employees affected: Approximately 140 persons
(2) Rationale and outline of the proposal
The furnace is currently in a state of 'hot-hold', as announced
on 6 July 2012. Having regard to the continued challenging
conditions within the European architectural market,
the Group proposes to discontinue the 'hot-hold' and close the line.
The closure of the line is expected to be effective from January 2013.
(3) Estimated costs of this decision
(a)Total cost: Approximately EUR 16 m (JPY1.6 bn)
(i)Cash expenses: Approximately EUR16 m (JPY 1.6 bn)
(ii)Non-cash charges: nil
(4) Impact on operations
There is no material impact arising from this action on the Group's
financial outlook for FY2013.
ends