Japan’s NSG Group, said its UK-based Pilkington automotive and building glass unit is to close a float glass production line due to falling demand. It has also revised down its fiscal 2012 full year forecast.
On 15 December last, the group said it would also delay construction of a solar energy line in Vietnam.
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“The measures are intended to protect the business in the short term and also to re-establish profit growth from [fiscal] 2013 onwards,” NSG said in a statement.
It added it had “experienced a reduction in many of its core markets, including its significant European building products and automotive markets”.
It has estimated a one-of cost of the move at JPY25 trillion (US$327m) with an expected annual recurring benefit of JPY20 trillion ($262.8m).
This cost reduction plan has targeted a reduction of 3,500 employees worldwide.
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By GlobalDataThe supplier said it would announce more details later after talks with affected employees and unions.
Capital investment will be restrained to the level of depreciation for the next two financial years.
Its revised forecast sees full year operating profit down 84%.
