Two of AGC Glass Europe’s oldest glass furnaces are scheduled to be shut down this year: one of the four furnaces of its Moustier plant (Belgium) and the furnace in the Salerno plant (Italy). Both these shut-downs have been caused by the combined effects of the sharp fall in demand and the large overcapacity in the European glass industry.
Due to the combined effects of the sharp fall in demand and the large overcapacity in the European glass industry, AGC Glass Europe has informed the personnel representatives concerned that it proposes to shut down the two oldest of its glass furnaces in Europe: 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 at a meeting of the Works Council that it intends to reorganize its operations so as to raise its competitiveness in the current difficult situation. The dual initiative (furnace shut-down plus reorganization) could lead to the loss of 123 jobs out of a total of 719, and will be discussed with the labour unions first. The consultations will also cover measures to soften the blow, such as setting up a reemployment team.
The Salerno plant 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, the proposal is to shut down the furnace at the end of February. The furnace employs 125 people out of a total of 140. Its shut-down will be discussed with the labour organizations. The plant will continue its processing and distribution activities.