British-based Pilkington has reorganised its German operations as of 1 October 1995.
Flachglas will now concentrate exclusively on float manufacture and glass products for buildings. The new firm Fla…
British-based Pilkington has reorganised its German operations as of 1 October 1995. Flachglas will now concentrate exclusively on float manufacture and glass products for buildings. The new firm Flachglas Automotive will be responsible for production for the car industry. Mirror manufacturer Flabeg and solar energy specialist Flagsol, which will be renamed Pilkington Solar International, are to be brought into the technical glass products unit. Part of the administrative activities of the individual subsidiary firms will be transferred to the German umbrella firm Pilkington Deutschland. Pilkington said that the reorganisation based on product lines would not lead to large exceptional costs, and there would be a small administrative saving. Flachglas has been struggling recently due to over capacity in the German glazing industry while a strong DM has restricted exports by German car manufacturers. The German company is estimated to have cut about 1,000 jobs in the past 18 months. The move follows the reorganisation three years ago of Pilkington“s European operations into five product-based divisions. The German firms account for around 30% of total group turnover. Pilkington also announced that it is planning to extend its leadership in the vast Chinese market by building a third float glass plant costing UK 80 million (US$ 124 million). The plant, for vehicle glass, should put the St. Helens group in a position to take full advantage of the fast-expanding car market in China, where western manufacturers are setting up a series of factories. The new factory will be sited at Wuhan, in central China, near a new Citroen plant. The Pilkington drive deeper into China was signalled recently by Nigel Rudd, chairman, and Roger Leverton, chief executive, after they launched a UK 303 million (US$ 470 million) rights issue and two acquisitions in Europe. Pilkington is also expanding in automotive glass in South America, where vehicle makers are investing a total of US$ 17 billion over the next three years. It is building a UK 15 million (US$ 23.3 million) laminating plant in Argentina and is establishing a new factory in Brazil, Leverton said.