Nippon Electric Glass employs 590 people at its Cardiff Bay base, which opened in November 1995 and manufactures and supplies glass components for cathode ray tubes.For much of this year Nippon has been running below capacity, and yesterday the company responded to growing fears about job losses by issuing a statement confirming that was seeking to shed employees.The statement read, "Members will [be] aware that a number of measures have been taken in an effort to reduce the impact of decreased sales and profitability.This has included a reduced furnace pull and shutdowns of panel forming press machines and panel finishing lines.
"Unfortunately, the external market shows no signs of a sustained long-term recovery and it remains the case that we will, for the foreseeable future, maintain our operation based on a maximum of three panel forming press machines and two panel finishing lines."
The company had given serious consideration to the structure required to operate at that reduced capacity, and had found it was necessary to reduce its workforce, it said.
"The company invites applications for voluntary redundancy among directly-employed NEG members. It is hoped that there will be sufficient volunteers for redundancy without having to resort to compulsory redundancies.
"Our recognised trade union has been informed of the company's decision to invite voluntary redundancies. The company deeply regrets the necessity of having to make this announcement but it is one which is unavoidable as a result of the current market situation, medium-term market forecasts and the imperative to protect the longer-term viability of NEG (UK) Ltd."