Shutdown of a Subsidiary’s Plant in Europe

AGC (Asahi Glass Co., Ltd.; Head Office: Tokyo; President & CEO: Kazuhiko Ishimura) announces that the AGC Group has decided to terminate the production of photovoltaic cover glass (patterned glass) at the Roux 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, 2014.1.

Reason for the shutdown

The photovoltaic cover glass market has seen continuous price decline due to oversupply, which resulted in deteriorating profitability of the Group’s business. 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 other type of production.

2. Subsidiary overview

1) Company name: AGC Glass Europe

2) Location: Louvain-la-Neuve, Belgium

3) Representative: Jean-François Heris

4) Capital: 346 million Euro

5) Ownership: AGC 100%

3. Subsidiary’s plant overview

1) Location: Roux, Belgium

2) Employees: 190

3) Products: Photovoltaic cover glass (patterned glass)

4) Facilities: A furnace for patterned glass, tempering/coating lines, etc.

4. Financial impact

The plant closure is expected to cost approx. 4.7 billion Japanese yen 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.

Media Contact

Junichi Kobayashi, General Manager, Corporate Communications & Investor Relations

AGC Asahi Glass Co., Ltd.

(Contact: Yasuo Sugiyama; Tel: +81-3-3218-5603; E-mail: info-pr@agc.com)

600450 Shutdown of a Subsidiary’s Plant in Europe glassonweb.com
Date: 30 June 2014
Source: www.agc.com

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