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Glaston takes actions to adapt to continued weak demand in Heat Treatment and Automotive & ET - co-operation negotiations in Finnish units initiated, actions in other units continue

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Glaston Corporation          Inside information          27 October 2020 at 1.05 pm

Glaston Corporation initiates co-operation negotiations concerning measures to adapt its operations to lower than expected demand. The co-operation negotiations cover all companies in Finland, and concern both temporary lay-offs and termination of employment contracts. Glaston estimates that the negotiations could lead to the termination of up to 20 employment contracts. The short-time work in Glaston’s Automotive business in Switzerland, implemented in the autumn 2019, continues until further notice and Glaston continues to monitor the situation very closely. Similar actions in other units continue. The measures mentioned above, in combination with other profitability improving actions, target savings of approximately EUR 1.5 million.

“The market for Heat Treatment equipment and services has remained very challenging throughout 2020, visibility in the market is low and forecasts are weak. Therefore, we see a clear need to adapt our business to current market demand. The Automotive business remains challenging due to the overcapacity in the market and the short-time work, started last year in Switzerland, continues. We are monitoring the situation very closely” acting President and CEO Sasu Koivumäki comments.

Demand in the Heat Treatment segment has been weak throughout the year, and orders received for January–September 2020 decreased by more than 30% from the 2019 corresponding period’s low levels. At the same time, the weak development in Automotive & ET continued as well. Demand for Insulation Glass equipment remains good and demand for Services is expected to recover during the fourth quarter. Third quarter and year-to-date figures, market development  and demand drivers are discussed more in detail in Glaston’s Q3 and January– September 2020 financial report published earlier today.

At the end of September, Glaston employed 180 employees in its units in Finland. The co-operation negotiations are expected to be concluded by mid-December.

Glaston Corporation

For more information:
Acting President and CEO Sasu Koivumäki, tel. + +358 40 558 7530
CFO Päivi Lindqvist, tel. + 358 40 708 5351

Glaston in brief

Glaston is the glass processing industry’s innovative technology leader supplying equipment, services and solutions to the architectural, automotive, solar and appliance industries. The company also supports the development of emerging technologies integrating intelligence to glass.

As of April 2019, Bystronic glass is part of Glaston Group. Together we are committed to providing our clients with both the best know-how and the latest technologies in glass processing, with the purpose of building a better tomorrow through safer, smarter, and more energy efficient glass solutions. We operate globally with manufacturing, services and sales offices in 11 countries. Glaston’s shares (GLA1V) are listed on NASDAQ Helsinki Ltd.

Distribution: Nasdaq Helsinki Ltd, key media, www.glaston.net.

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