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 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 is expected to last approximately two months. The review puts around 250 jobs at risk.
NEG stated that its UK composites arm has been “facing a challenging competitive environment with high prices for raw materials, energy, and logistics costs” that have led to “sluggish sales.” The company added: “This review is part of our ongoing efforts to recover performance.”
The Wigan site produces fibreglass used to reinforce plastic for composites found in wind turbine blades and electric vehicles. Its potential closure would add further strain to the Labour government’s forthcoming industrial strategy, expected in June, which aims to boost growth sectors such as advanced manufacturing.
UK industrial firms have struggled with soaring energy costs, particularly gas prices, following Russia’s invasion of Ukraine in 2022.
This development comes just days after British Steel announced plans to cease steel-making in Scunthorpe, closing its two blast furnaces. That decision, described as “devastating” by unions, will leave the UK as the only G7 country unable to produce steel domestically from scratch, risking up to 2,700 jobs.
EGF reported a loss of £3.47 million in 2023, a sharp drop from a £7.4 million profit in 2022. The company attributed the decline to “lower customer demand resulting from competition from Chinese imports” and increased raw material costs.
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