Japan“s Asahi Glass Co. has cut US output of automotive glass by an estimated 10% to deal with falling demand resulting from slow sales of new vehicles in North America, the Nikkei newspaper reported…
Japan“s Asahi Glass Co. has cut US output of automotive glass by an estimated 10% to deal with falling demand resulting from slow sales of new vehicles in North America, the Nikkei newspaper reported on 17 June 2008 without citing sources. The company has adjusted production schedules and reduced its part-time staff, but has not decided on how long it will continue the cut-backs. However, with demand for new vehicles falling as the subprime mortgage crisis hits consumer spending, Asahi Glass will consider further steps if necessary, the report said. The company has a processing plant in Kentucky and another in Ohio, with a combined capacity equivalent to 3 million vehicles a year. In May 2008, the company lowered output of construction glass at three locations, including Canada and California, in response to intensifying competition and the slump in the housing market. As a result, its total output capacity of sheet glass in North America fell 40% to 830,000 tons a year, the Nikkei said. For the fiscal year ending 31 December 2008, Asahi Glass will likely post its fifth straight operating loss in North America, the only region where it is making losses.