Glaston Corporation, a leading provider of glass processing technologies, announced today a planned transfer of its mobility and display pre-processing equipment production from Glaston Switzerland to its factory in Tianjin, China.
This strategic move aims to optimize Glaston’s global production capabilities, adapt to changing market demands, and enhance operational efficiency.
The decision is driven by the significant growth of the mobility glass segment in Asia, particularly China. In the first half of 2024, over 90% of Glaston’s pre-processing equipment orders originated from the Asia Pacific region, with China leading the way. This geographic shift in demand necessitates a corresponding adjustment in production locations to maintain proximity to customers and ensure timely delivery.
While production will move to China, Glaston will continue to maintain sales and service functions in Bützberg, Switzerland, to leverage its existing customer base and bolster service capabilities for life-cycle support. The company will implement a comprehensive knowledge transfer program to ensure continuity in quality and operational excellence.
The estimated costs associated with the transfer are approximately EUR 6 million, mainly related to personnel costs, including knowledge transfer and asset write-offs. The costs will be recorded as items impacting comparability and are expected to be incurred predominantly in 2024 and 2025, with approximately EUR 2 million estimated to be non-cash. This move is anticipated to yield annual net cost savings exceeding EUR 2 million by the end of 2025.
The transfer is expected to impact approximately 30 employees in Switzerland. A consultation process with employee representatives will be conducted in accordance with local regulations, with the process expected to conclude by early September. Glaston currently employs 66 individuals in Switzerland. The shift in production is anticipated to lead to the creation of around 20 new positions in China.
“This proactive move is part of our strategic plan to strengthen our position for profitable growth and navigate the challenging market environment,” said Antti Kaunonen, interim CEO of Glaston Corporation. “By streamlining production and improving operational efficiency, while also maintaining customer proximity through strong service capabilities, we aim to capitalize on the growing mobility glass market.” Glaston’s prior experience in transferring standard pre-processing product production to China with positive customer feedback further strengthens its confidence in this strategic shift.
Source:Glaston Corporation with additional information added by GlassBalkan
