China: Saint-Gobain invests EUR 50 million in an automotive glass factory
Batirama.com 10/05/20111The French group Saint-Gobain announced on Tuesday an investment of approximately 50 million euros in the construction of its second automotive glazing plant in China, in Qingdao, in the province of Shandong (east).
Saint-Gobain Sekurit, a wholly-owned subsidiary of the group and the third-largest producer of automotive glass in China, will make this investment in three phases, by 2014, near a flat glass manufacturing plant that the group owns, says a press release. The first production line will start in mid-2012.
The plant should gradually increase its production capacity and, from 2014, supply all the glazing to equip 1.5 million vehicles per year, thus doubling Saint-Gobain Sekurit's current production capacity in this country.
Saint-Gobain Sekurit, the world's second largest automotive glass manufacturer, is thus strengthening its position with automotive manufacturers present in China. In China, Saint-Gobain already has an automotive glass processing plant and a modular products in Shanghai, eleven pre-assembly sites across the country, and two flat glass factories in Qingdao and Nanjing.
The world's leading vehicle manufacturer, China alone accounts for a quarter of total production and has significant growth potential in the years to come, Saint-Gobain points out.
For Saint-Gobain, this investment marks a new stage in its growth strategy in Asia and emerging countries. The glazing activity, in which Saint-Gobain is the world number two in the sector, should achieve 45% of its turnover there by 2015, against 41.5% in 2010.
The group plans to devote two-thirds of its industrial investments in the glazing business to Asia and emerging countries over the next five years.
Saint-Gobain confirmed on April 28 its plan to IPO Verallia, its subsidiary specializing in glass packaging, "from the second quarter of 2011", to complete its refocusing on the housing markets, now considered more profitable, and emerging countries.
Source: batirama.com / AFP
