CSR’s loss-making Viridian subsidiary will lose 150 jobs and have two of its factories shut, the company announced this morning.
The closures will take place in western Sydney, with Viridian processing plants at Ingleburn and Wetherill Park to shut by next year, and the latter to have its operations moved to Erskine Park. What the Ingleburn factory made will be produced at CSR’s Dandenong factory or imported.
In its ASX announcement, CSR blamed the strong Australian dollar, weak building demand and an expensive environment, with “increasing energy and manufacturing costs”.
"CSR is implementing a major restructure of its Viridian glass operations to reflect the reality of the market, improve the short-term performance of the business and position Viridian to compete successfully in the future," said Rob Sindel, managing director, in a statement reported by AAP.
The ABC reports that Viridian is predicted to make a pre-tax and interest loss of $37-39 million.
One-off costs from the restructure are estimated to be $34 million, but savings of $27 million a year will be made starting in 2015.