Container glass manufacturer O-I Glass has approved the closure of four furnaces in its Americas segment.
About 200 people employed by the packaging glass company will be impacted by the closures, which will take place over the next six months.
The closures are part of its Fit to Win initiative and will include a single furnace plant in the Americas.
Additional furnace closures and other restructuring actions are expected later in 2024 said its CEO Gordon Hardie.
“Current customers of the impacted plants will continue to be served by the same plant or by other plants in the company’s network," it said.
The company will take a $20 million hit in charges due to these actions, with the majority related to asset impairment and the rest for severance and associated costs.
Major components of the charges include approximately $14 million for impairment of plant-related assets, such as furnaces and machinery, and $6 million for one-time employee separation benefits and other costs related to the closings.
Mr Hardie said since taking his position of CEO in May a review had taken place of all its 68 plants.
Over the last quarter, the company had temporarily curtailed 24% of its global capacity.
He told analysts earlier this month: “I’m not pleased with the declining profit or our 2024 results but we are taking rapid action.
"Fit to Win will make O-I more competitive and will enable economic growth. These efforts will set us up for success in 2025 and beyond.”
