AGC to Shut Float Lines

AGC Flat Glass North America, formerly known as AFG, is closing three float glass production lines and two glass coating operations this year, and also plans to sell its glass fabrication business. Part of a restructuring plan announced on April 17th by parent Asahi Glass, the closures are due in part to the continued decline in the North American housing market and a resulting oversupply situation, officials state.

The plants to be closed include both AGC's float and coating operations in Victorville, Calif.; a float plant in St. Augustine, Que.; a coating facility in Hampton, Iowa; and one float line at its Greenland, Tenn., plant. Approximately 800 employees will be affected by the closures.

The company reports it will concentrate production of its full commercial and residential coated glass product range at its Abingdon, Va., plant. Four other facilities-plants in Kingsport, Tenn.; Richmond, Ky.; Spring Hill, Kan. and Jerry Run, W.Va.-will not be affected by the changes.

‘These are difficult decisions, and they in no way reflect the skills and capabilities of AGC's outstanding employees across its North American operations,’ said Brad Kitterman, president and CEO of AGC Flat Glass North America, in a release sent to local Tennessee newspapers. ‘These decisions were made to minimise the impact of ongoing market trends, by eliminating glass overcapacity and non-core product segments. While difficult, the announcement we are making today will enable AGC Flat Glass North America to create a strong base for future growth-by focusing on the most strategically important and high-growth segments of our business.’

The company will work with its customers to ensure that it continues to deliver the same high-quality products and services they have come to expect, he added. ‘By refocusing and re-energising our business, we are striving to deliver even greater value, and more innovative products, to our customers in the solar, construction and automotive markets.’

As part of the restructuring plan, AGC plans to divest its glass fabrication business by the end of this year. This unit produces tempered, laminated and insulating glass in more than 30 locations around North America. ‘We are confident that our fabrication business will be an attractive acquisition, and will remain viable,’ noted Kitterman. ‘However, this business unit falls outside our new strategic goals, which include focusing on glass production and coating technologies, not finishing operations.’