AGC Glass Europe: proposed reduction in production capacity in Belgium and Italy

Impelled by the combined effects of the sharp fall in demand and the large overcapacity in the European glass industry, AGC Glass Europe today informed the personnel representatives concerned that it proposes to shut down the two oldest of its glass furnaces(1) in Europe, namely one of the four furnaces of its Moustier plant (Belgium) and the furnace in the Salerno plant (Italy).

The Moustier furnace has now reached the end of its working life and will be shut down in mid-March. The absence of any sign of a recovery in the market precludes any plans for refurbishing it. Given the highly competitive environment, the management of the Moustier plant also announced today at a meeting of the Works Council that it intends to reorganise its operations so as to raise its competitiveness in the current difficult situation. The dual initiative (furnace shut-down plus reorganisation) could lead to the loss of 123 jobs out of a total of 719, and so will first be discussed with the labour unions. The consultations will also cover measures to soften the blow, such as setting up a reemployment team.

The Salerno plant for its part has one production furnace, one laminated glass processing line and one distribution centre. Under the continuing effects of the financial crisis and the local overcapacity, it is proposed to shut down the furnace at the end of February. The furnace itself employs 125 people out of a total of 140. Accordingly, its shut-down will be discussed with the labour organisations. The plant will continue its processing and distribution activities.

AGC Glass Europe has 18 float glass furnaces spread over western, central and eastern Europe.

AGC Glass Europe, a European leader in flat glass

Based in Brussels, AGC Glass Europe produces, processes and markets flat glass for the construction industry (external glazing and interior decoration), car manufacture, solar power applications and various specialised industries. It is the European branch of AGC Glass, the world’s leading producer of flat glass.