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CSR cuts 150 jobs in Sydney

31-08-2010
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CSR cuts 150 jobs in Sydney

 

Building products company CSR is cutting 150 jobs from its glass business in response to the high Australian dollar and low construction activity.

According to an AAP report, CSR will close its glass manufacturing facility at Ingleburn, in Sydney's southwest, in July.

It will also merge a processing plant at Wetherill Park, in Sydney's southwest, with a nearby plant in Erskine Park by January 2014, CSR said on Monday.

"It is estimated that headcount reductions will be in the order of 150," the company said in a statement.

The high Australian dollar has forced down prices for the company's products, and made it cheaper to import materials, CSR said.

House construction activity is also at a low point and is expected to recover at a slower pace than previously expected, it said.

"CSR is implementing a major restructure of its Viridian glass operations to reflect the reality of the market, improve the short-term performance of the business and position Viridian to compete successfully in the future," CSR managing director Rob Sindel said.

The redundancies, site closure and relocation are expected to cost the company about $34 million, but deliver an annual boost of $27 million in earnings from 2015.

CSR has also downgraded its profit forecast for its fiscal year to March 31.

Because of the weak performance of its Viridian glass business and the timing of property sales, CSR now expects its net profit after tax, excluding costs from restructuring, to be in the range of $30 to $34 million.

That is down from previous forecasts of a profit in the range of $35 million and $45 million.

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