The firm says its loss-making glass subsidiary Veridian will close its float and laminating glass facility at Ingleburn in Sydney’s south-west in July this year.
The majority of output previously supplied by that plant will now be sourced from the company’s Dandenong factory, with imports making up the difference.
CSR says the glass processing facility at Wetherill Park in Sydney’s west will be closed, with operations consolidated into the nearby Erskine Park factory, by January next year.
In all, CSR estimates that around 150 jobs will go under the restructure which, combined with cost savings from consolidating the facilities, will save the company around $27 million per year from 2015 onwards.
However, the restructure will cost the firm around $34 million in its next financial year, due to redundancy, site remediation and relocation costs.
CSR says the restructure was necessary because of the persistently high Australian dollar pushing down the cost of imported glass, a weaker than expected recovery in residential and commercial construction, an over-supply of glass, and increased energy and manufacturing costs.
The company says its Veridian glass division is likely to post a before interest and tax operating loss of $37-39 million.
Overall, CSR is expecting to post a net profit after tax of $30-34 million for its financial year, which ends on March 31.
