UK’s largest fibre glass factory to close as rescue talks collapse
The government’s industrial strategy was at risk of smashing into pieces after it emerged the country’s largest fibre glass factory is set to close.
The Japanese owners of Electric Glass Fiber UK’s factory in Wigan, near Manchester, which produces materials used in electric cars and wind turbines, decided to close the site at a meeting on Wednesday in Tokyo, according to the Financial Times.
A stock market filing on Wednesday said the factory’s operations would be ceased, smashing an industry worth more than £2bn to the UK economy according to sector group British Glass.
The decision comes just days before the government is set to outline a strategy detailing how it plans to protect manufacturers and bring energy bills down.
Nippon Electric Glass (NEG) warned that it would be forced to close the factory two months ago, with around 250 jobs at risk if buyers could not be found.
The chair of an investment group which had been in negotiations to buy the factory, Jack Khan, blamed the government for the collapse of the factory as ministers declined to underwrite £5m in financing for the deal.
“The fundamental issue here is that the UK government is standing by and watching British industry collapse,” Khan told the newspaper.
Business secretary Jonathan Reynolds and Keir Starmer’s business adviser Varun Chandra reportedly tried to find a rescue deal, with bidders submitting offers worth up to £10m.
Investors and business owners hope will provide greater clarity on how the government aims to reduce energy costs in its upcoming industrial strategy paper.
Manchester mayor Andy Burnham, who was in Japan to meet with NEG executives, said he wanted British communities to have a “bright industrial future”.
The industrial strategy is expected to highlight areas of the UK economy that the government hopes can attract investment while providing some greater clarity on how electricity prices can come down.
UK electricity bills were higher in 2024 than all but three EU countries, with industrial prices almost three times that seen in France between January and June last year.
Confederation of British Industry (CBI) boss Rain Newton-Smith suggested the costs of some net zero policies, including the building of the national grid and rolling out renewables at a rapid pace, had pushed electricity prices higher.
The government hopes new nuclear plants such as Sizewell C can help to lower costs, with the Spending Review last week adding resources available to the Department for Energy Security and Net Zero.
Glass maker’s closure ‘deeply disappointing’
According to Nippon Electric Glass, the division made a pre-tax loss of £12m in 2024, having also list £3m in 2023.
It last made a pre-tax profit in 2022 when it achieved a total of £7m.
Over the three years, the company’s net sales declined from £66m to £56m and then £54m.
Responding to the news Gary Edwards, GMB regional organiser, said: “This is a deeply disappointing outcome for our members, their families and the wider Wigan community.
“Everyone involved worked tirelessly to try and secure the site’s future.
“But for every solution we found, the company presented another problem. It became hard not to question how serious they were about doing a deal.
“These were skilled jobs in a vital industry. GMB will stand by our members and continue to fight for real investment in UK manufacturing.”
Josh Simons, MP for Makerfield, said: “Both the government and potential buyers worked flat out to meet every condition Nippon imposed—even when those conditions changed, repeatedly, often with very little notice.”
