Saint-Gobain Sekurit Benelux has announced its intention to shut its windscreen plant at Auvelais, Belgium, due to the downturn in business in Europe.
Saint-Gobain said in a statement that the move “comes in the wake of a profound deterioration of the automotive market in Europe”.
The windscreen plant supplies a number of OEMs and the replacement market, but the decline in car production in Belgium has led to a 60% drop in the plant’s turnover since 2006.
The statement added that the “continuous efforts of management and staff to adjust to the economic situation and improve manufacturing performance have unfortunately been insufficient to enable the site’s activity to continue.”
The planned shutdown would lead to the plant’s 263 employees being laid off.
“We are fully aware of the emotional impact of such an announcement on our staff and on their families, as well as the questions it raises,” said Christine Vander Hayden, Saint-Gobain HR Director for Belgium and Luxembourg.
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By GlobalData“If this intention is confirmed, we shall lead the process in a socially responsible and respectful way, and we are counting on the employee representatives to ensure effective dialogue, in a climate of openness and transparency.”
The outlook for the Belgian plant deteriorated further when Ford said it plans to shut its Genk plant in late 2014.