Şişecam is proactively addressing current challenges to boost shareholder value while advancing its long-term objectives. As part of its strategy to optimize costs in line with production and sales projections, the company has decided to bring forward the cold repair of the furnace at its Northern Italy Flat Glass Plant in San Giorgio di Nogaro. As a result of this repair, the facility’s float line ceased production on February 7, followed by the laminated line on March 13.
Şişecam’s decision is driven by the current dynamics of the European flat glass market, where total sales have fallen short of targets for the past two years. In response, the company is focusing on optimizing the production-sales-stock balance to ensure high efficiency in line with its 2025 expectations.
As part of this decision, Şişecam plans to leverage Italy’s social security mechanism to support employees at the affected facility, ensuring continued income during the cold repair period. These steps, taken amid a challenging period characterized by significant uncertainties, will contribute an estimated EUR 8 to 10 million to Şişecam’s EBIT profitability in 2025. This contribution will come from increased capacity utilization at Şişecam’s other European facilities, with a continued focus on budget discipline and long-term growth.
Şişecam CEO, Görkem Elverici, said, “When we announced our third-quarter results for 2024, we emphasized our unwavering commitment to navigating today’s market conditions with a sharp focus. We have already begun implementing actions aimed at improving both financial and operational efficiency, with the goal of enhancing shareholder value and driving sustainable success for Şişecam.
“In this context, we are focused on resuming production operations in Northern Italy as quickly as possible, following the early cold repair, in alignment with our production and sales projections. Throughout this period, we will achieve significant gains in overall efficiency and profitability by increasing capacity utilization at our other flat glass facilities in Europe.
“Şişecam’s culture is built on sustainability and continuity. We will find constructive solutions for our colleagues who have contributed to Şişecam at this facility. We will continue to manage the challenges of the period and create value for our shareholders by taking the necessary steps swiftly and decisively, all while staying committed to our long-term growth goals.”