After decades in Cleveland County, Nippon Electric Glass is pulling the plug on its fiberglass plant in Shelby, North Carolina, at the end of August, wiping out 282 jobs in one shot. The move effectively pulls the company out of U.S. glass-fiber production even as it lines up a sale of a sister operation in Lexington to a bigger industry player.
The shutdown surfaced in a Worker Adjustment and Retraining Notification filed July 6, listing Aug. 31 as the separation date and 282 affected positions, according to a public notice from the North Carolina Department of Commerce. The filing, posted July 8, locks in the timeline for what the company characterizes as a structural overhaul of its composites business.
Saint-Gobain To Keep Lexington Running
In a press release, Saint-Gobain North America said it will acquire the Lexington plant and expects the deal to close on July 31, with about 90 employees moving onto its ADFORS roster. The company described the Lexington facility as a 1.2 million square foot operation that will keep running under its new ownership.
"I am also thrilled to welcome the Lexington plant employees to the Saint-Gobain ADFORS team," Patrick Dwyer, president of Abrasives and Construction Fabrics at Saint-Gobain North America, said in the announcement. The company added that the purchase will help shore up its regional supply chain for roofing and gypsum products.
Company Says Market Pressures Prompt Exit
In an investor notice, Nippon Electric Glass cited shifts in market structure and intensifying competition as reasons for reviewing its composites unit, a review that ended with the decision to suspend production in Shelby at the end of August. The company told investors that transferring the Lexington operation should have only a minor impact on earnings, while the financial fallout from the Shelby shutdown is still being assessed.
Company figures reviewed in local coverage show net sales at the Shelby and Lexington operations dropping from $266 million in 2023 to $237 million last year, while net assets slid from $131 million to $99 million. According to The Charlotte Observer, those numbers came from filings tied to the restructuring.
Plants' Roots And Past Cuts
The Shelby and Lexington plants trace their roots to PPG's North American fiberglass business. PPG's 2017 SEC filing records the roughly $541 million sale of that unit to Nippon Electric Glass, according to PPG's 2017 10-K.
Nippon's investor notice also points out that the company closed an Electric Glass Fiber America site in Chester, South Carolina, in 2019 as part of earlier restructuring efforts, another step in a multiyear pullback from North American glass-fiber production. Nippon Electric Glass described the latest moves as a continuation of that program.
What Workers Face
For now, there is no clear path for Shelby workers. Industry coverage and company statements indicate it is not yet known whether any Shelby employees will be moved to Lexington. Nippon has said the impact of the shutdown is still under review and it has not announced any relocation plans, a timeline summarized by Glass International.
WARN Notice And Next Steps
The WARN process exists to give employees and local officials a heads-up before large layoffs so workers can seek unemployment benefits, training and other support instead of getting blindsided. In North Carolina, those filings are posted publicly, and the North Carolina Department of Commerce maintains the statewide listings.
As it stands, the Lexington handoff is expected to close July 31 and Shelby is set to stop production on Aug. 31. The companies say they will report any material impacts in future filings or press releases. For a boiled down look at the corporate timeline and disclosures, Glass International has a concise summary.
