NSG Will Shut Down Two Float Lines, One in Sweden and One in Italy

The NSG Group announced intentions to reduce production capacity of its European architectural glass business, and will shut down two float lines, one in Sweden and one in Italy. The closure of the float line in Halmstad, Sweden, is expected by the end of March 2013, and will affect approximately 230 people. According to the announcement, "the group is taking action to reduce capacity and output to match the requirements of its customers, consistent with its restructuring program. The proposed action is to right-size the capacity to further reduce fixed cost base. " Estimated cost of this closure, according to NSG, is approximately EUR 64 million (approximately $81 million USD), including cash expenses of approximately EUR 21 million ($27 million USG) and non-cash charges of approximately EUR 43 million ($55 million USD). The company also plans to close the float line in Porto Marghera, Venice, Italy, affecting approximately 140 people. The closure is expected to take effect by January 2013. According to the company, the furnace is currently in a hot-hold state, as announced July 6, 2012. "Having regard to the continued challenging conditions within the European architectural market, the group proposes to discontinue the 'hot-hold' and close the line, " states the announcement. An estimated cost of this closure is approximately EUR 16 million ($20 million USD). There are no non-cash charges. Source: usgnn