Nippon Electric Glass (NEG) has suspended production activities at its glass fibre plant in Shelby, North Carolina, USA.
The company will also sell its Lexington, Kentucky, USA plant as part of the company’s structural reforms in its composites business.
Both plants are currently owned by Electric Glass Fiber America, a consolidated subsidiary of NEG.
Saint-Gobain Adfors America will buy the Lexington plant and take over the manufacture and sale of glass fibre.
Closing of the Lexington sale is expected to take place at the end of July, and production will cease at the Shelby plant at the end of August.
The moves mean that NEG will withdraw from the production of glass fibre products in North America.
The company said: “The business environment surrounding our Group’s composites business has remained challenging in recent years due to changes in market structure and intensifying competition.
“In light of these circumstances, we have been implementing structural reforms to improve profitability and strengthen competitiveness in our composites business.
“In 2019, we closed EGFA’s Chester plant; in 2023, we wound down operations at our Dutch subsidiary; and in 2025, we decided to suspend production activities at our UK subsidiary.
“Through these measures, we have been working to restructure our production operations, while also striving to improve productivity, and review our product portfolio.
“As part of these efforts, we have implemented measures at EGFA, such as improving productivity and reviewing our product portfolio.
“However, as it is expected to take additional time to improve profitability, we have decided to suspend production at the Shelby plant and sell the Lexington plant.
“With this decision, we will streamline less competitive products to concentrate our management resources on growth areas and achieving medium - to long-term growth and improved profitability in the composites business.”
Net sales at the two locations have declined over the past three years, with net sales decreasing from $266 million in 2023 to $237 million in 2025.
However, net sales only decreased by $1 million from 2024 to 2025.
Net assets have also fallen from $131 million in 2023 to $99 million in 2025.
The company stated it does not expect the sale of the Lexington plant to have a material impact on its financial results.
It added: “The impact of the suspension of production activities at the Shelby plant is currently under review.
“If we find that a large impact is expected, we will promptly make an announcement.”
