Schott to Close Janaer Glas

Schott to Close Janaer Glas

SCHOTT Jenaer Glas finds itself compelled to terminate production of consumer glassware in Jena. It is planned to close down all business activities by March 31, 2005. The closure will affect 120 employees. SCHOTT intends to limit the number of operational layoffs to a maximum of 30. The employees affected will therefore be offered transfers within Jena and the SCHOTT Group, as well as measures aimed at buffering the social impacts of closure.

SCHOTT Jenaer Glas finds itself compelled to terminate production of consumer glassware in Jena. It is planned to close down all business activities by March 31, 2005. The closure will affect 120 employees. SCHOTT intends to limit the number of operational layoffs to a maximum of 30. The employees affected will therefore be offered transfers within Jena and the SCHOTT Group, as well as measures aimed at buffering the social impacts of closure.

A massive decline in demand combined with increasing imports from low-wage countries have led to extreme competition in the consumer glassware industry. In addition, many customers supplied by SCHOTT Jenaer Glas have relocated their production to other countries. This has led to enormous losses in the order of millions of euros in recent years, despite intensive restructuring and rationalization measures.

Other reasons for closure include overcapacities in Europe and the increase in aggressive pricing by eastern European and Asian competitors.

A further contributory factor is that other materials, such as ceramics, plastics and special steel, are substituting for products made of borosilicate glass. A reversal of this direction is nowhere in sight.

"This was a tough decision for us to make, because it impacts on the long-standing "Jenaer Glas" brand. Nonetheless, we had to accept that the production of consumer glassware in Germany is no longer viable", commented CEO Wolfgang Meyer.

SCHOTT is committed to Jena as a production location and will now concentrate on manufacturing high-tech products with a bright future. Permanent and secure jobs are safeguarded in Jena by processing of "CERAN" glass-ceramic cooktops, production of special float glass and fire-resistant glass, growing crystals for chip manufacturing, and making high-quality thin glass products for TFT applications.

The SCHOTT Group is currently undergoing the greatest modernization process in its corporate history. The goal is to improve its international competitiveness and to establish a strong basis for stable revenue and earnings growth. These efforts will also benefit the sites in Jena, where SCHOTT has invested more than 350 million euros since 1990.

SCHOTT Jenaer Glas GmbH, SCHOTT Lithotec AG and SCHOTT Display Jena GmbH are the key subsidiaries of the globally operating group in Jena, where SCHOTT currently employs around 900 people.

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