Reprieve for Toyota glass supplier

GLASS manufacturer CSR Viridian has sold the former Pilkington automotive glass operation in Geelong to Victorian-based plastics manufacturer MH Group, just three weeks after saying it had no viable offer to save it.

The deal – which was rumoured on Melbourne radio in early June – was sweetened with federal government funding from its Australian Industry Structural Adjustment Program.

The Victorian government also has contributed to the deal, which saves at least half of the 70 jobs at the plant and secures Toyota’s automotive glass supplies.

The factory had been earmarked for closure on October 1.

It is Australian-owned MHG’s first venture in auto glass. It currently makes a range of plastic parts for all three car-makers in Australia from its plant at Melton, in Melbourne’s west.

CSR Viridian had owned the factory since 2007 when it acquired the broader Pilkington glass manufacturing business which had operated the Geelong factory since 1937.

CSR spokesman Martin Cole told the Geelong Advertiser in early June that “no offer has materialised which is consistent with the land, plant and equipment”.

However, a rumour aired on Melbourne’s 3AW radio suggested a deal with a Victorian-based parts maker had already been done.

MHG says it will continue the auto glass operations, consolidating CSR’s Laverton manufacturing operations to Geelong.

The sale to MH Group was confirmed today in a press released issued jointly by federal innovation minister Kim Carr and Victorian industry and trade minister Martin Pakula.

Senator Carr said the sale of the plant was a welcome reprieve for Geelong and the automotive industry.

He said Toyota had played a key role in the resurrection of the plant.

“I understand MHG and Toyota will rebuild and expand the automotive glass business and I wish them every success in this endeavour.” Toyota was the last remaining car-maker to take windscreens and other auto glass from the plant after the demise of Mitsubishi as a local manufacturer.

Ford and Holden already import their glass – an arrangement that MHG wants to reverse.

Mr Carr said about half of the workers at the plant would be offered jobs with MHG and all would be paid redundancy entitlements.

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