Frigoglass today announces the further restructuring of its global production facilities. In its nine-month results statement on 24th October 2008, the Company announced that it was accelerating its plan to increase the efficiency and flexibility of its global production footprint. As part of this it announced the closing of its Norway facility, and the downsizing of its plant in Poland.
Rapidly deteriorating global economic conditions have made it necessary to broaden the restructuring initiatives. This will ensure that Frigoglass is in a strong position to meet the current macroeconomic challenges as well as to benefit from the long term fundamentals of the industry. Further to the closing of the facility in Norway, Frigoglass announces today that it will seize production in Poland, and significantly reduce the capacity of its Kato Achaia plant in Greece.
Frigoglass believes that its decision to reduce the workforce by 120 people through voluntary redundancy programme, represents an optimal and sustainable solution for the Greek plant, and therefore protecting the remaining 90 jobs. The Company recognizes the valuable contribution of all its employees, and will be ensuring that this will be reflected in compensation terms of those workers affected by this necessary action.
The consultation process will be completed on the 6th of February 2009. The cost of the proposed severance package is estimated at ?8.5 million, and will be recorded as an exceptional charge in Frigoglass? full year 2008 financial results.