Plummeting shares in British glassmaker Pilkington, which has a large plant at Kings Norton, recovered 23/4p to 663/4p after the group revealed that a shake out of its North American operations would …
Plummeting shares in British glassmaker Pilkington, which has a large plant at Kings Norton, recovered 23/4p to 663/4p after the group revealed that a shake out of its North American operations would cost UK 20 million more than expected. The group – which in October said redundancies, new machinery and factory closures in the US would cost UK 48 million – said the cost would now be UK 68 million. Chief executive Paolo Scaroni began a top to bottom worldwide restructuring which he calls the “step change programme“ when he took the helm in 1997. He has already cut staff by 10,000 to 31,000. “This North American plan represents the final phase of our step change programme which has impacted every business in Pilkington and will transform the group into the leading competitor in the world glass industry,” said Scaroni. Plans to boost yield and productivity at its six North American float glass plants should deliver UK 37 million annual cost savings, he said. A similar plan at the automotive glass businesses should reap UK 18 million in savings a year. On top of this, corporate overheads in North America would be cut by UK 25 million a year.