Arc International informed employees and management of its Spanish plant that it would not be investing in the rebuilding of two furnaces after they reach the end of their life-cycle (2011 for Furnace 2 and 2013 for Furnace 1). The company said it was a difficult decision but is a result of decreased demand on the EU tableware market, leading to industrial overcapacity in this region, where Arc's French site alone can meet demand for soda-lime and opal glass. Subsequent to this announcement, Luis Fernandez, MD of Vicrila, along with two other managers have proposed a management buy out of the company. The project was completed on 30 December/09, as an agreement was signed between the Spanish management team and Arc International with the support of the local Basque and Central governments. According to the conditions of the agreement, the Group will: Continue using Vicrila production capacities as part of a sourcing contract up to 2011 for Furnace 2 and to 2013 for Furnace 1; and will provide technical assistance to the new company till the end of the sourcing contract.
