AGC intends to close German and Belgian plants
Management of AGC Glass Germany GmbH have informed the local works council of its intention to stop production activities in Wegberg Plant.
The restructuring plan would entail the dismissal of 84 people within the next 2 years (2022–23), including permanent and temporary contracts, white and blue collar employees dedicated to these production activities. Other staff employed by AGC Glass Germany would not be impacted.
AGC Automotive Belgium informed its works council of its intention to close the Fleurus site in Belgium. The plant currently employs 187 workers.
Solutions will be studied to minimize the social impact. The company had announced an intention to make 40 workers redundant in September 2021 but the Automotive sector has continued to be under unprecedented pressure with potential consequences on capacity utilization.
In an unstable and deeply evolving automotive market, the profitability of the plants in both countries has been affected by strong and worldwide competition between glass manufacturers and by technological evolutions.
Almost two years ago, the Group's difficulties in saturating its laminated glass production lines were exacerbated by the Covid crisis and the ongoing semiconductor crisis. Even more recently, there has been a dramatic increase in energy and raw material costs.
Image: Automotive glass in Europe sees turbulent times.
