CSR, one of Australia's construction firms announced a $22 million restructuring program after facing tough competition from cheap Chinese glass imports on the back of the high Australian dollar, The Australian reported on Thursday.

The Australian reported that CSR's restructuring program for its Viridian glass business will affect 115 jobs as the company struggles to stay afloat amid a construction downturn.

"CSR is a victim of cheap Chinese glass imports and the high Australian dollar - its Viridian glass business is buggered," The Australian quoted an analyst.

In an announcement posted on its website, CSR said said the restructuring follows a review of Viridian in the wake of the recent sharp
deterioration in business confidence and activity.

CSR said Viridian has a higher proportion of its earnings derived from the commercial construction sector and is also the most trade exposed and highest fixed cost business within CSR's Building Products portfolio.

The further deterioration in commercial construction, which declined 20% and residential construction, which saw a drop of 15%, together with the record appreciation in the Australian dollar, continue to impact the performance of Viridian, it said.

CSR said Viridian is expected to generate a loss before interest and tax (pre-significant items) in the range of $6 to $8 million for the six months to September 30.

It said Viridian will restructure its float glass and bulk laminate manufacturing operations, a process which will be completed over the remainder of this financial year.

Viridian will rationalise its laminating operations in Melbourne, by investing in a new laminating line at Dandenong and closing the current lines in Dandenong and Clayton.

Viridian will also cease production of uneconomical products at Dandenong and Ingleburn and alternatively source these products.

The Viridian restructuring is estimated to around $10 million in annual savings.

CRS said its aluminium business has also been affected by the recent lower US$ aluminium price combined with the consistently high Australian dollar.

Earnings before interest (EBIT) and tax for Gove Aluminium Finance is expected to be in the range of $42 to $45 million for the first half of this financial year, assuming no material changes to currency and aluminium prices.

CSR said its other Building Products businesses continue with EBIT (pre significant items) expected to be in the range of $90 to $100 million for the six months to September 30.

CSR anticipates net profit after tax (pre significant items) and earnings per share for the first half will be around 10 per cent above the previous corresponding period (of $44.4 million in Sept 2010), reflecting the company's improved balance sheet and lower net interest costs.