Guardian will replace a glass furnace at its Bascharage site, the economy ministry announced on Monday, with a more environmentally friendly and technologically modern model to begin production in 2023.

“Thanks to this new investment in Bascharage, glass production in Luxembourg will continue for the next 15 to 20 years,” said Guus Boekhoudt, Guardian executive vice president.

The glassmaker in June last year said it would close its Dudelange furnace and merge activities in Bascharage, putting nearly half its 450-strong workforce at risk of redundancy. As a result of union talks, the company in August 2020 signed a two-year job retention plan, which prioritises early retirement, training and reassignment, or furlough over job cuts.

Unions threatened strike action after the company announced plans to lay off 37 staff in October 2020. Both sides finally reached an agreement at the end of November 2020 with job guarantees for employees aged 52 or over, financial compensation packages for departing staff, and layoffs delayed by at least four months.

The cost of the production line upgrade wasn’t revealed at a press conference on 10 May, but economy minister Franz Fayot (LSAP) said it would be in the double-digit millions, with the state to contribute as part of an environmental subsidy programme.

“Guardian's investment in a state-of-the-art production facility is part of our economic policy to support the continued development of a high value-added industry that uses less energy and is more environmentally friendly,” Fayot said.