PILKINGTON Owner Nippon Sheet Glass Has Gone Into The Red and Shed 1, 750 Jobs Worldwide

PILKINGTON owner Nippon Sheet Glass has gone into the red and shed 1, 750 jobs worldwide this year as it restructures to cope with the effects of the global recession. The group, which employs some 1, 600 people across its sites in St Helens and Ormskirk, has been hard hit by the slump in the global construction and automotive industries. Tokyo-based NSG yesterday reported a pre-tax loss of £138m for the six months to September 30, down from a £50m profit for the same period last year. Sales for the period stood at £2bn, down 10% on last year, as the group faced “significant deterioration” in its European markets. But NSG said its restructuring plans were on track and said it had taken steps across Europe and the US to tackle overcapacity in its business, with 1, 750 people leaving the group between February and September. NSG said: “During the second quarter of the year, most of the group’s main architectural and automotive markets continued to be challenging, particularly in Europe. Volumes were below the previous year, although the second quarter was similar to the first quarter, with no further significant declines experienced. “In Europe, architectural markets were weak, as economic uncertainty continued to affect levels of public, commercial, and residential construction. Volumes, whilst still at a low level, were similar to the first quarter. “Prices improved towards the end of the quarter, with increases realised across several territories. “Automotive markets were also challenging, with low levels of consumer demand in most major markets leading to reductions in vehicle production when compared to the previous year. Calendar year-to-date vehicle sales for Western Europe are approximately 7% below the previous year. “Automotive glass replacement demand also fell from the previous year, as consumers postponed replacing damaged windshields where possible. ” In May, NSG said it was putting one of two furnaces at its Gladbeck site in Germany out of action until at least the end of the year. And in July it said it was putting an architectural float furnace in Venice on “hot hold”, meaning it will be unused but kept active so it can be restarted at short notice. NSG added that it did not expect a “significant improvement” in market conditions this year, though it expects cost savings to continue under its two-year restructuring plan. Despite the downturn, NSG has continued with the £36m “Project Chocolate” to build a glass plant at Cowley Hill, St Helens. Source: usgnn