Saint-Gobain announced a new joint venture with its US manufacturing plant on Friday in a bid to improve efficiency and profitability at the plant.
At the same time Saint-Gobain is closing a production line at the Newark plant which is to move production to a plant near it.
The financial details of the deal were not disclosed, though the joint venture is believed to have been structured to partially shield Saint-Gobain’s profit from the cost of the move.
Saint-Gobain, which is currently the world’s top material science company, aims to drive efficiencies at its troubled operations as it seeks to boost efficiency and profitability at the US and Europe-based facility. It aims to close a production line there that was most recently used for carpets and has used up 3.6msq ft of floor space over the past three years.
As a result of the planned shutdown, “we will have close to 15 per cent of floor space used for chemistry used for (electrical and electronic) components”, said Ronald Glassey, Saint-Gobain’s US chief executive.
Saint-Gobain also invested in a new production line at the facility which provides equipment to manufacturer dental materials.