Nippon Sheet Glass to suspend production of display in Vietnam starting May
Nippon Sheet Glass to suspend production of display in Vietnam starting May
Japanese glass producer Nippon Sheet Glass (NSG) will suspend production of thin flat glass for display in Vietnam temporarily starting in May, according to a press release posted on the company’s website.
According to the release, this is an exit from loss-making businesses, “thus minimising losses, aiming to swiftly eliminate obstacles to a further recovery in [NSG]’s performance.” The timing for restarting this line will be decided, assessing the market situation, inventory levels, and other relevant factors.
The group currently operates two thin glass float lines: one in Japan and the other in Vietnam. Of these, the line in Vietnam is operated by wholly-owned subsidiary NSG Vietnam Glass Industries Limited (VGI) in the southern province of Ba Ria-Vung Tau’s My Xuan A industrial park. The company started operation of the $123 million production line in June 2014.
Alongside the thin float glass line, VGI also operates another float glass line for thin film solar products. The line will continue to operate, with no impact on production or sales.
NSG operates in architectural, automotive and technical glass. As part of the technical glass business, NSG supplies ultra thin glass for small LCD applications. Its ultra-fine flat glass products are used in touch panel, computers and mobile devices. For the fiscal year 2016, which started on April 1, 2015 and ended on March 31, 2016, NSG expects a group net loss of ¥50 billion ($445 million), far deeper than its previously projected ¥7.5 billion ($67.2 million) loss.
Last August, Samsung announced an additional $3 billion investment in its display business in Vietnam, bringing its total investment in this business to $4 billion.
