Glaston merges business areas; closes N.J. plant
To increase profitability, especially of the machine business, Glaston, Finland, has merged its Pre-processing and Heat Treatment business areas to form the new Machines BA business area, according to an April 22 company release.
As part of the restructuring, Glaston will close a machines manufacturing plant in Cinnaminson, N.J. The manufacturing of U.S. tempering lines will be transferred to Finland and China.
The targeted annual cost savings from the merger and improved productivity are estimated to be EUR 3.5 million, or $4.5 million, globally. These will be realized in full from 2010 onwards. The merger will generate one-off costs estimated at EUR 3.7 million, or $4.8 million, recognized mainly in the second quarter of 2009. Possible redundancies will be analyzed and faced in compliance with local legislation, according to the release.
Topi Saarenhovi will head the global Machines business area, and has been appointed senior vice president. He joined Glaston in 2007 as senior vice president, Heat