UK’s Largest Fiberglass Plant to Close as Rising Energy Costs and Chinese Competition Take Toll​

Nippon Electric Glass (NEG) confirms shutdown, highlighting global market shifts and China’s growing dominance in fiberglass production. 

Tokyo, June 5, 2025–Nippon Electric Glass Co., Ltd. (NEG) announced today the closure of its UK fiberglass manufacturing plant following a board meeting in Tokyo. The decision comes after a two-month review period failed to secure a buyer for the struggling facility, with production set to cease by late June.

Internal Struggles and External Pressures Drive Closure​​

NEG cited deepening financial losses—£12 million in the past year—alongside insurmountable operational challenges. In 2022, the company explored replacing carbon-emitting gas furnaces with advanced electric alternatives, only to abandon the plan due to prohibitive electricity costs and infrastructure upgrades.

Externally, the UK plant faced intense competition from surging Chinese fiberglass imports into Europe, compounded by the region’s high energy prices post-Ukraine conflict. These factors rendered the facility economically unviable.

Industry Impact and Calls for Competitive Reforms​​

The shutdown will eliminate 250 skilled jobs and deal a blow to the UK’s ambitions in sustainable materials for wind turbines and electric vehicles. Dave Dalton, CEO of British Glass, lamented the loss, stating:

“NEG UK’s closure underscores the urgent need for a competitive industrial strategy to address the costs undermining UK manufacturing.”

China’s Fiberglass Ascendancy and Future Outlook​​

As Western producers retreat, Chinese fiberglass manufacturers continue expanding capacity, poised to further increase their global market share. China already supplies over 60% of the world’s fiberglass, leveraging economies of scale and government-backed innovation to deliver cost-competitive, high-quality products. 

Shanghai Orisen New Material Technology’s Perspective: Confidence in China’s Fiberglass Leadership​​

At Shanghai Orisen New Material Technology, we recognize these market dynamics as both a challenge and an opportunity. China’s fiberglass industry has demonstrated unparalleled resilience, technological advancement, and commitment to sustainable production—key drivers of its global success.  

We remain steadfast in our support for China’s fiberglass sector, investing in cutting-edge R&D and eco-friendly manufacturing to meet rising demand from aerospace, automotive, and renewable energy industries. To our partners and clients worldwide: we stand ready to deliver reliable, high-performance solutions tailored to tomorrow’s needs. 

For inquiries on how we can support your fiberglass requirements, contact [+86 18683776368/ grahamjin@jhcomposites.com]. Together, we’ll shape a stronger, smarter industrial future.