Owens-Corning Fiberglas, Toledo, OH, a global manufacturer of glass fibers and polyester resins, is beginning a revitalization plan covering all of its European facilities and branch offices of the Industrial Materials Group, which when finished will result in the elimination of some 500 jobs from the group. The plan includes closing the Falkenberg, Sweden manufacturing plant, centralizing many administrative services, and creating a central customer service center. This will be accomplished with an investment that will be used to increase capacity by 25% at the existing facilities. The company will invest $110 million in its European facilities over the next three years. That investment, combined with streamlining and refocusing operations, should translate into a cost savings of $85 million from 1994-1996 and $40 million each year thereafter. The plan is being undertaken to combat the adverse market conditions in Europe, a company report said. The goals of the program are to ensure a clear cost advantage against major European competitors, to bring costs in line with those in the U.S. no later than 1996, and to improve customer service.
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|Title Annotation:||Owens-Corning Fiberglass Corp.'s restructuring plan|
|Article Type:||Brief Article|
|Date:||Jun 1, 1993|
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