AGC Solar announces that the AGC Group has decided to terminate the production of PV cover glass (patterned glass) at the Roux plant and shut down the plant. The decision was made under the local law on June 26 following due information and consultation with the Works Council and the union organizations which started February 10, 2014.
The PV cover glass market has seen continuous price decline due to oversupply, which resulted in deteriorating profitability of AGC Group's business. Since operating losses at the site are unavoidable, the AGC Group has concluded that it has to urgently revise the group's production to meet the market environment, and it would be impossible to convert the plant to other type of production. Therefore, it decided to shut down AGC Glass Europe, its 100% owned subsidiary in Belgium.
The AGC Glass plant closure is expected to cost approx. 4.7 billion Japanese yen in expenses for restructuring programs which will be recorded in the second quarter of this fiscal year. The AGC Group will make a prompt announcement if there are any changes to the current forecast.