Nippon Electric Glass Co., Ltd. (NEG) has decided at the board of directors’ meeting held today, April 30, 2015, to close its Fujisawa Plant as below.
1. Reason for Closure
NEG suspended its Fujisawa plant operation of glass tubing for pharmaceutical use at the end of January, 2014 and transferred the production capacity to Otsu Plant for business restructuring due to the shrinkage of Japanese domestic market of glass tubing. According to the change of production base from Fujisawa to Otsu, customers’ quality approval of Otsu products were required and NEG has been working for obtaining the approval from customers. And now, as the approval process has almost completed, NEG has decided to close Fujisawa Plant, at which operations have been suspended.
2. Overview of Fujisawa Plant
Location: 7-6 Kugenuma-shinmei 3-chome, Fujisawa City, Kanagawa, Japan
Business: Production of glass tubing for pharmaceutical use
Establishment: April 1959
3. Future Prospects
We will remove all buildings and equipment from the site in accordance with the prescribed procedure. We have already posted an impairment loss on fixed assets at Fujisawa Plant and some other expenses in the fiscal year ended March 2013. However, we are still examining other possible remaining expenses associated with the closure. If the expenses affect our earnings forecasts this fiscal year and there are some needs to make changes in the forecasts, we will make a prompt announcement.
Source: Nippon Electric Glass Co., Ltd./neg.co.jp