Vitro reported that it accelerated the closure of two production plants in its automotive glass manufacturing segment, in the United States.
As a result of the temporary closure of the original equipment companies and their own companies in 2020, as they were considered as non-essential, the scenario was very complicated for the company.
However, one of Vitro’s strategies was to implement a strict cost and expense savings and reduction plan that would facilitate the continuity of operations and stay prepared when the economy reactivated.
This allowed Vitro to accelerate the permanent closure of the Evart, Michigan and Evansville, Indiana plants in July 2020 and February 2021, respectively, which were scheduled to take place in the first half of 2021.
As a result, this led the company to move capacity to other plants and reorganize production, and although it caused expenses, these actions will foreseeably allow Vitro to take advantage of the fixed cost base.
In general, the company has reconfigured and relocated platforms in order to maximize capacity and productivity, and this generated costs and efficiency problems that the company expects to be resolved in the short term.
In December 2019, an equipment failure was recorded in one of the facilities located in Mexico City that caused part of the operations to be suspended, affecting the volume of glass for the replacement market.
Then the plant restarted in a few weeks with the support of equipment provided by outsiders on an interim basis.
According to Vitro, having its damaged equipment replaced took six months, but with the support of another of its subsidiaries, production did not stop, and the plant is currently working in total normality.
The performance of the automotive glass business was affected by the havoc that the pandemic produced not only in health but in other aspects such as the world economy.
As a result of this, many companies were forced to slow down their operations for a time, Vitro’s clients among them.
Under these circumstances, the company’s automotive business stopped activities in America, Europe and Asia for a period of three months.