Saint-Gobain has halted glass mineral wool production at its Ploiesti-based plant for an undetermined period of time due to the impact of the financial crisis over the construction sector.
Production is not expected to be resumed in the immediate future while 42 employees will be laid off, according to a recent company statement.
The economic crisis has affected sales and profitability and since “for the continuation of the production line in Romania additional investments of several million euro would have been required, investments which could not be supported by the financial results they would generate,” stopping activity at the plant was decided, according to company officials.
The company aims to support the redundant employees through severance payments, retraining orientation sessions and specialized courses with certification and psychological support.
Saint-Gobain will continue to produce basaltic mineral wool on its second line of production in Ploiesti, with a total of 86 employees in the departments of production, trade, logistics, finance and human resources.
To ensure the necessary volumes of cotton fiber glass market in Romania, the company will import such products from other Isover factories in the region.