NSG Group Announces Temporary Reduction in Float Capacity in Europe

The NSG Group has informed employee representatives in its Architectural Glass Europe business of its intention to keep one of the two furnaces of its Gladbeck float plant in Germany out of operation until at least the end of calendar year 2012.

The decision was taken as a consequence of demand reduction across Europe in the Group's three main business sectors – Solar Energy, Automotive and Architectural Products, combined with overcapacity in the European glass industry.

Production at the Gladbeck float line was interrupted in mid-April for a planned cold repair. The refurbishment of the line is still underway, but given the highly competitive environment in Europe, it has been decided not to resume production until market demand recovers. Local management is in discussion with the local Works Council concerning lay-off agreements for different parts of the operation.

Further possible reductions in the Group's float glass capacity in Europe are currently under review.