Fri­go­glass to shut Chi­nese plant in a bid to cut costs

Kathimerini English - - Front Page -

Greek re­frig­er­a­tor­maker Fri­go­glass will shut its Chi­nese plant by Septem­ber un­der a plan to re­duce costs, the com­pany said yes­ter­day. Fri­go­glass, which sup­plies Coca-Cola HBC and Euro­pean brew­ers, will close its man­u­fac­tur­ing op­er­a­tions at its Guangzhou fa­cil­ity by the end of the third quar­ter this year and shift the plant’s pro­duc­tion to In­dia and In­done­sia, it said. “This de­ci­sion will en­able the op­ti­miza­tion of the pro­duc­tion ca­pac­ity in Asia, im­prove the com­pany’s fixed cost struc­ture and strengthen its long-term com­pet­i­tive­ness,” Fri­go­glass said in a state­ment. The com­pany has been fac­ing fi­nan­cial dif­fi­cul­ties as lower de­mand for its prod­ucts in East­ern Europe and Nige­ria as well as tough con­di­tions in Russia have taken their toll. In March, it agreed with its cred­i­tors to ex­tend re­volv­ing credit fa­cil­i­ties to the end of March 2017, with the sup­port of its largest share­holder, Truad Ver­wal­tungs AG, which has com­mit­ted to pro­vide a 30mil­lion-euro loan. Fri­go­glass will keep its com­mer­cial and cus­tomer ser­vice op­er­a­tion in China.

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