Nippon Electric Glass plans to close a fibreglass plant in USA.
Electric Glass Fiber America based in Chester, South Carolina, will close at the end of the first quarter this year with the loss of 145 jobs.
The plant opened in 1996 as a PPG Industries facility to make fiberglass that’s used in auto parts, medical equipment and other products. It was sold to Nippon in 2017.
In a financial notice at the end of December, the Japanese based owner said the closure was the result of weak demand mainly in Europe and China as a result of intense market competition.
It had decided to consolidate its production facilities in America from three to two ‘in order to enhance the efficiency of management, and improve cost competitiveness as well as review the production lineup.’
It added that long-term stable growth is expected in the fibreglass business.
“We will continue to improve the productivity in US and Europe subsidiaries, and further enhance cost reductions through the streamlining of organisation," it said.
“Moreover, by further strengthening the cooperation among four plants (Japan, Malaysia, US and Europe), we aim to accurately identify customer needs, and realise optimal local production and sales according to demands in each region."
