Latest news with #NEG
Yahoo
9 hours ago
- Business
- Yahoo
High energy costs trigger closure of major UK wind turbine supplier
A major supplier to Britain's green energy industry is set to close after its Japanese owner failed to clinch a rescue deal for the company and its 250 workers. Wigan-based Electric Glass Fiber UK (EGFU), which is owned by Nippon Electric Glass (NEG), makes vital components used in wind turbines and electric cars. Its closure puts net zero supply chains under threat. Both are seen by the Government as critical to its industrial strategy amid moves to decarbonise the British economy and to build up domestic supplies of critical products at a time of tariffs, wars and mounting geopolitical rivalries. The British operation was profitable as recently as 2022, but made losses of £3m in 2023, mounting to £12m in 2024, according to the Japanese owner, which first invested in the UK arm in 2016. It blamed competition from Chinese imports as well as the rising cost of raw materials, in financial statements published in last year, which could only be partially passed on to customers in the form of higher prices. The business also said rising energy prices were putting pressure on operations. Britain's manufacturers typically pay far higher bills than competitors in countries including France and Germany, even though much of the Continent has been exposed to higher gas and electricity costs since Russia's invasion of Ukraine in 2022. British and European authorities sought to protect domestic fibreglass manufacturers from perceived unfair competition from China, imposing 'anti-dumping' tariffs on imports from the world's second-largest economy in 2020. The measures are set to run until early next year. Most of the company's sales go to European customers. But the tariffs were not sufficient to preserve the Wigan plant. NEG said the closure of the site, just west of Manchester, came despite intense efforts to find an alternative. Production will cease later this month. The parent company said:'NEG has considered various options, including the possibility of selling EGFU, forming strategic partnerships, or cessation of its business activities during the approximately two and a half month strategic review period. 'In order to quickly rebuild our composites business, we have determined to cease EGFU's operation and proceed with preparations for voluntary liquidation.' The closure comes after Sir Keir Starmer stepped in to rescue British Steel, taking control of the business as the Prime Minister deemed the Scunthorpe site to be critical to the country's industrial security. In that instance, a Chinese owner's planned closure would have threatened the nation's remaining steel production capacity, with ramifications for industries from construction to defence at a time when the Government wants both of those sectors to ramp up output urgently. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
ITV News
11 hours ago
- Business
- ITV News
250 jobs at risk as UK's largest glass factory set to close in Wigan
More than 250 jobs have been put at risk as trade unions and local politicans warn the largest fibre glass factory in the UK is set to close. The NEG Nippon Electric Glass Fiber Works (EGFU), based at Hindley Green near Wigan, has been owned by the Japanese company since 2016 and was a major part of their planned expansion into the European market. The future of the site has been in doubt since April, when NEG announced they were looking for a buyer to take over their UK branch. At a Board of Directors meeting held on Wednesday 18 June, the company's president Akira Kishimoto announced they would "cease operations" of their UK subsidiary. The President confirmed the site will "stop its production in late June". Despite working with the company to find a new owner, Labour MP for Makerfield Josh Simons has published an open letter to workers in which he says that "Nippon is unwilling to do a deal to secure the future of this site and your jobs." He said: "I am angry and I will stand up for you in the coming days to secure whatever support I can for you and your families. "I want you to know that I value and respect the work you do. I care very much about doing my absolute best for you, for this community, and for industry in the UK. "In this age of insecurity, it matters where things are made and who makes them, and I will push for this site and Hindley Green to be at the front of the queue for future investment opportunities." GMB Regional Organiser Gary Edwards described the decision to close the sight as "deeply disappointing" and a "bitter betrayal of workers and UK industry". Mr Simons has been working with the Government, the GMB Union, and prospective buyers to secure the future of the sight, but said NEG repeatedly changed their conditions for any sale with little notice. He said: "I am so sorry that we couldn't get this over the line. I know how anxious this period has been. "I have spoken to many of you in recent weeks, as have Gary and your local councillors, and I can only imagine how you feel. I want you to know that your work is a source of pride for me, for this area, and for the country." Gary Edwards added: 'Everyone involved worked tirelessly to try and secure the site's future. 'But for every solution we found, the company presented another problem. It became hard not to question how serious they were about doing a deal." Mr Simons went on to invite workers to a meeting at the local Labour club with representatives of the GMB union, where he promised to explain what had happened and explain the next steps they could take.
The Guardian
04-04-2025
- Business
- The Guardian
Japan-owned UK glass factory could shut if no buyer found, risking 250 jobs
A glass factory in Wigan that produces fibreglass for electric cars and wind turbines faces closure and the loss of 250 jobs unless its Japanese owner can find a new partner or a buyer. In the latest blow to Britain's industrial base, Nippon Electric Glass (NEG) announced a 'strategic review' of its composites business Electric Glass Fiber UK (EGF), which it expects to last approximately two months, putting about 250 jobs at risk. NEG said that its UK composites arm had been 'facing a challenging competitive environment with high prices for raw materials, energy, and logistics costs' that had led to 'sluggish sales'. The company added: 'This review is part of our ongoing efforts to recover performance.' The Wigan site produces fibreglass that is used to reinforce plastic for composites found in wind turbine blades and electric cars. It closure would put further pressure on the Labour government's industrial strategy, expected in June, which will focus on promoting growth sectors of the economy, and areas such as advanced manufacturing. The UK's industrial companies have struggled in the face of soaring energy costs, particularly rising gas prices, since Russia's invasion of Ukraine in 2022. It comes just days after British Steel announced plans to end steel-making in Scunthorpe with the closure of its two blast furnaces. The move, described as 'devastating' by unions, will leave the UK as the only G7 country unable to make steel domestically from scratch, and is expected to result in the loss of up to 2,700 jobs. EGF made a loss of £3.47m in 2023, according to its most recent financial accounts, compared with a profit of £7.4m in 2022. The company said in its accounts that its profits had fallen because of 'lower customer demand resulting from competition from Chinese imports' as well as other factors including higher costs for raw materials. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion NEG said it would consider various options during its strategic review of the fibreglass factory, including selling the businessor 'forming strategic partnerships'. NEG said that if it was not successful in finding a partner or a buyer, it would consider potentially closing down EGF's operations. The Wigan site was bought by NEG in 2016, and two years later received a £15m investment from its parent company, according to local news reports. Wigan is NEG's only manufacturing site in Europe. It has operations across its home country of Japan as well as the US and elsewhere in Asia.
