Glaston Says it Will Adjust Operations in Line with Market Situation
October 29, 2009
Glaston says it will today begin negotiations over the restructuring of its operations to correspond to the market situation. The related plan includes adjustments to production capacity, the optimization of the product range and simplification of the sales organization. The maximum number of jobs to be reduced is around 400, of which around 50 will be in Finland. The company currently employs around 1,200.
"No immediate recovery is in prospect within the glass processing machine markets. In this situation, we are seeking permanent improvements by restructuring our business operations without jeopardizing our delivery performance or customer service," says Arto Metsänen, president and chief executive officer of Glaston Corporation.
According to the announcement, upon implementation the above mentioned measures would give additional cost savings of around EUR 12 million per year, occurring mainly during the first half of 2010. One-off costs associated with these measures would amount to a maximum of EUR 10 million, booked in the final quarter of 2009.
Employer-employee negotiations will involve Glaston's entire personnel in all operations worldwide. The actual scope of the program will be determined as the result of joint negotiations with staff representatives. Any redundancies will be evaluated and implemented in line with local legislation.
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