Frigoglass to shut Chinese plant to cut costs by September

Frigoglass SAIC

15/07/2016 09:05

ATHENS, July 15 (Reuters) - Greek refrigerator maker 
Frigoglass  FRIr.AT  will shut its Chinese plant by September 
under a plan to save costs, the company said on Friday. 
    Frigoglass, which supplies Coca-Cola HBC  CCH.L  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 optimisation 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 30 million euros ($33.4 million) loan. 
    Frigoglass will keep its commercial and customer service 
operation in China. 
   ($1 = 0.8985 euros) 
 
 (Reporting by Angeliki Koutantou; editing by David Clarke) 
 ((angeliki.koutantou@thomsonreuters.com; +30 210 3376436; 
Reuters Messaging: angeliki.koutantou.reuters.com@reuters.net)) 
 
Keywords: FRIGOGLASS CHINA/