Nippon Sheet to cut jobs to pay for Pilkington

TOKYO, Feb 28 (Reuters) - Nippon Sheet Glass Co (5202.T) (5202.T) said on Thursday it would aim to cut the number of managers in Japan to help pay down debt taken on for its $4 billion acquisition of British glassmaker Pilkington in 2006.

Nippon Sheet, which makes glass used in cars, construction and for the production of electronics, said it would launch an early retirement scheme open to all 800 managerial positions in Japan, or roughly 28 percent of all employees in the country.

It did not disclose a target for how many it expected to apply for the scheme.

The company said in a statement it was aiming to cut jobs in Japan because its operations there are less profitable than other countries, and it would aim to improve cash flow to reduce debt taken on for the Pilkington acquisition.

Nippon Sheet spokesman Hiroya Tanaka said the last time the company embarked on a major cut to its workforce was in 1993-94.

Nippon Sheet has about 2,900 employees in Japan and 34,000 as a group worldwide.

The company is also looking to sell its 50 percent stake in NH Techno Glass, a joint venture with Hoya Corp (7741.T) that makes glass used in the production of liquid crystal displays. [ID:nnT51908]

Prior to the announcement, shares in Nippon Sheet Glass closed down 2.3 percent at 505 yen. The benchmark Nikkei average .N225 lost 0.8 percent. (Reporting by Nathan Layne; Editing by David Holmes)