Glaston plans to transfer production of all glass pre-processing equipment to China

The aim is to further streamline Glaston’s global production capabilities, adjust capacity to meet customer demand, and improve operational efficiencies while continuing to serve customers globally close to their markets. The mobility glass segment’s growth is fastest in Asia while being modest in other regions. In the first half of 2024 over 90% of Glaston's pre-processing equipment order intake was from APAC, mainly from China.

The plan would entail maintaining Sales and Services functions in Bützberg, Switzerland, to leverage the installed base and ensure strengthened service capabilities for life-cycle support to customers. Detailed planning will be conducted with teams in Switzerland and China to ensure a successful knowledge transfer and continuation of quality operations.

The estimated costs of the planned production transfer are approximately EUR 6 million mainly consisting of personnel-related costs including the costs of the knowledge transfer as well as asset write-offs. The costs would be booked as items impacting comparability and they are expected to be incurred mainly in 2024 and 2025. Approximately EUR 2 million of the costs are estimated to be non-cash. Based on the initial analysis, the annual net cost savings from the transfer would take place in several phases and reach over EUR 2 million by the end of 2025.

The planned pre-processing offering production transfer to China would affect an estimated 30 employees in Switzerland. A consultation procedure with employee representatives will be conducted in accordance with local processes. The process is expected to be completed by early September. Currently, 66 employees are located in Switzerland. The expected personnel increase in China is approximately 20 new employees.

“We want to proactively look for opportunities to strengthen our position for profitable growth and succeed in executing our strategy in a challenging market situation. The plan is to streamline the current production model and improve operational efficiency while ensuring proximity to customers with strong service capabilities. With technology know-how and the prior experience of transferring standard pre-processing product’s production to China with positive customer feedback, Glaston is well-positioned to continue addressing the growing mobility glass market,” says Antti Kaunonen, interim CEO of Glaston Corporation.