Glaston Corporation Inside information 7 August 2024 at 12:00 EEST
Glaston is planning to transfer the production of mobility and display pre-processing equipment products from Glaston Switzerland to Glaston’s factory in Tianjin, China. The aim is to further streamline Glaston’s global production capabilities, adjust capacity to meet customer demand, and improve operational efficiencies while continuing to serve customers globally close to their markets. The mobility glass segment’s growth is fastest in Asia while being modest in other regions. In the first half of 2024 over 90% of Glaston's pre-processing equipment order intake was from APAC, mainly from China.
The plan would entail maintaining Sales and Services functions in Bützberg, Switzerland, to leverage the installed base and ensure strengthened service capabilities for life-cycle support to customers. Detailed planning will be conducted with teams in Switzerland and China to ensure a successful knowledge transfer and continuation of quality operations.
The estimated costs of the planned production transfer are approximately EUR 6 million mainly consisting of personnel-related costs including the costs of the knowledge transfer as well as asset write-offs. The costs would be booked as items impacting comparability and they are expected to be incurred mainly in 2024 and 2025. Approximately EUR 2 million of the costs are estimated to be non-cash. Based on the initial analysis, the annual net cost savings from the transfer would take place in several phases and reach over EUR 2 million by the end of 2025.
The planned pre-processing offering production transfer to China would affect an estimated 30 employees in Switzerland. A consultation procedure with employee representatives will be conducted in accordance with local processes. The process is expected to be completed by early September. Currently, 66 employees are located in Switzerland. The expected personnel increase in China is approximately 20 new employees.
“We want to proactively look for opportunities to strengthen our position for profitable growth and succeed in executing our strategy in a challenging market situation. The plan is to streamline the current production model and improve operational efficiency while ensuring proximity to customers with strong service capabilities. With technology know-how and the prior experience of transferring standard pre-processing product’s production to China with positive customer feedback, Glaston is well-positioned to continue addressing the growing mobility glass market,” says Antti Kaunonen, interim CEO of Glaston Corporation.
For further information, please contact:
Interim CEO Antti Kaunonen, tel. +358 10 500 500
Chief Financial Officer Päivi Lindqvist, tel. +358 10 500 500
Glaston Corporation
Pia Posio, VP Communications, Marketing and IR, tel. +358 10 500 5057
Glaston in brief
Glaston is the glass processing industry’s innovative technology leader supplying equipment, services and solutions to the architectural, mobility, display and solar industries. The company also supports the development of new technologies integrating intelligence to glass.
Glaston is committed to providing its clients with both the best know-how and the latest technologies in glass processing, with the purpose of building a better tomorrow through safer, smarter, and more energy efficient glass solutions. Glaston operates globally with manufacturing, services and sales offices in nine countries and its shares (GLA1V) are listed on Nasdaq Helsinki Ltd.
Distribution: Nasdaq Helsinki Ltd., key media, www.glaston.net