Nippon Electric Glass (NEG) has announced a significant restructuring of its North American composites operations, confirming the suspension of production at its Shelby manufacturing plant and the sale of its Lexington facility to Saint-Gobain Adfors America. The decision marks another major step in the company’s long-term strategy to improve profitability and strengthen the competitiveness of its glass fibre composites business.

The move follows several years of structural reforms across NEG’s global composites operations. In 2019, the company closed the Chester plant operated by Electric Glass Fiber America (EGFA). This was followed by the wind-down of its Dutch subsidiary in 2023 and the decision in 2025 to suspend production at its UK subsidiary. These measures have been aimed at optimizing manufacturing operations, improving productivity and refining the company’s product portfolio in response to changing market conditions.

NEG stated that the composites business continues to face a difficult operating environment driven by shifts in market structure and increasing competitive pressure. Although productivity improvements and portfolio adjustments have been implemented at EGFA, the company concluded that additional time would be required to restore profitability. As a result, it has decided to cease glass fibre production in North America by suspending operations at the Shelby plant while transferring ownership of the Lexington facility to Saint-Gobain Adfors America.

The restructuring is expected to allow NEG to streamline less competitive product lines and redirect management resources toward higher-growth business segments.