UK glass manufacturer Pilkington Plc. is to cease production at Lahden Lasitehdas in Lahti, Finland, for up to two years to rid glass production of over-capacity. The Finnish plant currently employs 1…
UK glass manufacturer Pilkington Plc. is to cease production at Lahden Lasitehdas in Lahti, Finland, for up to two years to rid glass production of over-capacity. The Finnish plant currently employs 184 staff and some employees will be retained during the stoppage for cutting and processing glass, as glass produced elsewhere is marketed in Finland, Russia and the Baltic States from Lahti. The furnace at the plant, which has been in constant use since 1987, may be renewed during the stoppage. The stoppage at Lahden Lasitehdas will cut Pilkington“s production by about 55,000 tonnes a year. The group estimates its total over-capacity to be around 200,000 tonnes. In fiscal 1995-1996, the company recorded an increase of 26% in operating profit to UK 214 million. Profits before exceptional items and tax were up 47% to UK 212 million. An exceptional charge of UK 155 million was taken against profits in respect of a major restructuring programme. Including exceptional items the pre-tax profit was UK 55 million, compared with a loss of UK 248 million the previous year. Net cash flow from operating activities fell from UK 328 million to UK 217 million. Efforts continued to be focused on the core businesses of flat glass and safety glass. In August, Pilkington unveiled its largest ever investment project in Australia. Under “Project 2000”, a A$ 50 million programme to make the company“s operations in Australia more internationally competitive, a new manufacturing plant for laminated glass will be built in Geelong, Victoria, and existing equipment upgraded. Len Reid, general manager of Pilkington Australia“s automotive division, said: “Project 2000 will be an innovation of world scale – certainly it could be considered the most significant automotive glass project within the company during my long association. Pilkington Australia already has contracts to supply glass for General Motors, Mitsubishi, Toyota and Ford. Reid said the project was imperative to meet the increasing demands of local automotive customers and new export contracts.