AGC Shuts Down Subsidiary Plant in Belgium
July 9, 2014
Asahi Glass Co. (AGC) recently announced that the AGC Group has decided to terminate the production of photovoltaic (PV) cover glass (patterned glass) at the Roux, Belgium plant, which is operated by AGC Glass Europe, a consolidated subsidiary of AGC, and shut down the plant. The decision was made under the local law on June 26 following due information and consultation with the works council and the union organizations, which started February 10.
The PV cover glass market has seen continuous price decline due to oversupply, which resulted in deteriorating profitability. Since operating losses at the site are unavoidable, the AGC Group has concluded that it has to urgently revise the group’s production to meet the market environment, and it would be impossible to convert the plant to another type of production.
The plant closure is expected to cost approximately ¥4.7 billion (~ $46.3 million) in expenses for restructuring programs, which will be recorded in the second quarter of this fiscal year. The AGC Group will make a prompt announcement if there are any changes to the current forecast.
For more information, visit www.agc.com.