Frigoglass to shut Chinese plant in a bid to cut costs
Greek refrigerator maker Frigoglass will shut its Chinese plant by September under a plan to reduce costs, the company said on Friday.
Frigoglass, which supplies Coca-Cola HBC and European brewers, will close its manufacturing operations at its Guangzhou facility by the end of the third quarter this year and shift the plant’s production to India and Indonesia, it said.
“This decision will enable the optimization of the production capacity in Asia, improve the company’s fixed cost structure and strengthen its long-term competitiveness,” Frigoglass said in a statement.
The company has been facing financial difficulties as lower demand for its products in Eastern Europe and Nigeria as well as tough conditions in Russia have taken their toll.
In March, it agreed with its creditors to extend revolving credit facilities to the end of March 2017, with the support of its largest shareholder, Truad Verwaltungs AG, which has committed to provide a 30-million-euro loan.
Frigoglass will keep its commercial and customer service operation in China.
[Reuters]
