Frigoglass is to integrate its Turkey-based manufacturing volume into its European flagship plant in Timisoara, Romania, and Frigoglass’ Silivri-based Turkish manufacturing plant will cease operations by the end of 2014.
Frigoglass has announced the integration of its Turkey-based manufacturing volume into its European flagship plant in Timisoara, Romania. As part of this process, Frigoglass’ Silivri-based Turkish manufacturing plant will cease operations by the end of 2014. Through this consolidation of its European operations, Frigoglass will significantly improve its cost structure and strengthen long-term competitiveness. The commercial and customer service activities in Turkey will be seamlessly continued during the integration period and beyond.
With this step, Frigoglass is right-sizing its manufacturing capacity to the lower level of demand in Europe over the past few years. The continued productivity improvements following the implementation of Lean manufacturing principles in the plant in Romania have made available sufficient capacity to absorb the volume from Turkey and meet any potential future demand. A reconfigured supply chain will ensure Frigoglass provides customers in Turkey and in other European markets with excellent quality products at short lead times.
This integration process will also enable the effective consolidation of Frigoglass’ product range in Europe towards an innovative modular platform covering all existing applications. This will reduce complexity, drive cost efficiency through scale and safeguard excellent quality. On top of this, Frigoglass will maintain its innovation commitment and invest in additional Product Development resources in Romania. Based on this, we will enhance customer responsiveness and create value through innovative cooler solutions for customers.
Frigoglass will provide an update on the expected annualized cost savings and related restructuring costs at the time of announcement of its 2014 second quarter results on 7 August.
Torsten Tuerling, Chief Executive Officer of Frigoglass, commented: “The integration of the Turkish operations into our Romanian plant is a quantum leap for Frigoglass. It will drive economies of scale, improve overhead cost absorption and reduce complexity within our manufacturing footprint in Europe. Not only will this integration improve our cost competitiveness, but it will also enable the next phase of Lean manufacturing transformation towards operational excellence and outstanding quality. With this integration we demonstrate that we are prepared to make bold moves in order to continually improve the performance of our business and to enhance customer value.”