Addressing Market Challenges – Glaston’s Strategic Moves
Glaston’s half-year financial report, released on August 1, 2023, highlighted the emergence of increased market uncertainty and cautious customer behavior during the first half of the year.
As a result of a slowdown in the architectural market, Glaston anticipates a softer demand environment in Europe and China for the remainder of the year. However, prospects for increased demand are on the horizon in the Americas.
The Heat Treatment segment, encompassing machine orders and upgrade products, experienced a decline in order intake compared to the previous year. Despite market softness, demand remains underpinned by robust megatrends favoring energy-efficient glass solutions, particularly insulating glass solutions.
In response to the prevailing market conditions, Glaston is gearing up for strategic adaptations across its operations.
Glaston is set to initiate co-operation negotiations in Finland, encompassing all operational aspects, to address the evolving market challenges and implement necessary adjustments.
The planned reorganization may involve measures such as potential employment contract terminations and temporary layoffs, contingent on the evolving market dynamics.
Glaston estimates that these negotiations could lead to the termination of fewer than 10 employment contracts. The negotiations will encompass the entire personnel in Finland.
At the close of June 2023, Glaston Group had a total workforce of 817 individuals, with approximately 220 based in Finland, most of whom operate within the Heat Treatment segment.
Source: Glaston Corporation with additional information added by Apazone