07.02.2025 - Şişecam, a global leader in the glass and chemicals industries, is proactively addressing current challenges to boost shareholder value while advancing its long-term objectives. As part of its strategy to optimize costs in line with production and sales projections, the company has decided to bring forward the cold repair of the furnace at its Northern Italy Flat Glass Plant. As a result of this repair, the facility's float line will cease production on February 7, followed by the laminated line on March 13.
Contribution to Profitability at EBIT Level of 8-10 million Euros
Şişecam's decision is driven by the current dynamics of the European flat glass market, where total sales have fallen short of targets for the past two years. In response, the company is focusing on optimizing the production-sales-stock balance to ensure high efficiency in line with its 2025 expectations. As part of this decision, Şişecam plans to leverage Italy's social security mechanism to support employees at the affected facility, ensuring continued income during the cold repair period. These steps, taken amid a challenging period characterized by significant uncertainties, will contribute an estimated 8-10 million Euros to Şişecam's EBIT profitability in 2025. This contribution will come from increased capacity utilization at Şişecam's other European facilities, with a continued focus on budget discipline and long-term growth.
Şişecam CEO, Görkem Elverici, commented on the decision: "When we announced our third-quarter results for 2024, we emphasized our unwavering commitment to navigating today's market conditions with a sharp focus. We have already begun implementing actions aimed at improving both financial and operational efficiency, with the goal of enhancing shareholder value and driving sustainable success for Şişecam. In this context, we are focused on resuming production operations in Northern Italy as quickly as possible, following the early cold repair, in alignment with our production and sales projections. Throughout this period, we will achieve significant gains in overall efficiency and profitability by increasing capacity utilization at our other flat glass facilities in Europe. Şişecam's culture is built on sustainability and continuity. We will find constructive solutions for our colleagues who have contributed to Şişecam at this facility. We will continue to manage the challenges of the period and create value for our shareholders by taking the necessary steps swiftly and decisively, all while staying committed to our long-term growth goals."
About Şişecam
Şişecam is a story of progress...
Founded in 1935 by İş Bankası with the vision and signature of Mustafa Kemal Atatürk, Şişecam was established to build Turkey's glass industry. Over the decades, Şişecam has grown from a local initiative into a global player in glass and chemicals.
As the only global company operating in all core areas of glass production, Şişecam is the global leader in glassware and chromium chemicals, among the top five producers in flat glass and glass packaging, and one of the top three producers of soda ash worldwide.
Şişecam operates across four continents and 14 countries, including Turkey, Germany, Italy, Bulgaria, Romania, Slovakia, Hungary, Bosnia and Herzegovina, Russia, Georgia, Ukraine, Egypt, India, and the United States. Şişecam plays a pioneering role in flat glass, glassware, glass packaging, chemicals, auto glass, glass fiber, mining, energy, and recycling industries. By placing innovation and technology at the core of its operations, Şişecam delivers its products to customers in over 150 countries through its robust supply chain.
Şişecam makes a meaningful difference in its industries with 90 years of expertise, a skilled workforce, and the use of smart technologies. Supported by more than 24,000 employees, Şişecam is steadily advancing toward its goal of becoming one of the top three global producers in its core industries.
With its CareForNext strategy, Şişecam works to ensure the sustainability of the glass and chemicals industries from the perspectives of protecting the planet, empowering communities, and transforming lives in line with the United Nations Sustainable Development Goals.
Şişecam is pursuing a better future through technology and innovation and continues its story of progress together with its entire ecosystem.
Learn more: www.sisecam.com.tr