The business environment surrounding Nippon Electric Glass’s (NEG) composites business has remained challenging in recent years due to changes in market structure and intensifying competition. In light of these circumstances, NEG has been implementing structural reforms to improve profitability and strengthen competitiveness in their composites business.
In 2019, NEG closed EGFA’s Chester plant; in 2023, the company wound down operations at the Dutch subsidiary; and in 2025, it was decided decided to suspend production activities at the UK subsidiary. Through these measures, the company has been working to restructure its production operations, while also striving to improve productivity and review the product portfolio.
As part of these efforts, NEG has implemented measures at EGFA, such as improving productivity and reviewing the product portfolio. However, as it is expected to take additional time to improve profitability, NEG has decided to suspend production at the Shelby plant and sell the Lexington plant to Saint-Gobain Adfors America, thereby withdrawing from the production of glass fibre products in North America.
With this decision, the company will streamline less competitive products to concentrate our management resources on growth areas and achieving medium- to long-term growth and improved profitability in the composites business.