Asian Glass - AG16-2 Edition

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AG16-2

SEE US AT:

CHINA GLASS SHANGHAI, CHINA

Inside:

PLUS!

Iran: open for business?

Tableware: the Asian top 20 Egyptian container glass Indonesian glass processors

news, views, analysis and much, much more!

Because we care

TPS®. From the Original Inventor.

More than 30 years of accrued experience with warm edge spacers sanctions us: With Thermo Plastic Spacer TPS® it is possible to achieve a peripherally tight edge seal whilst sustaining and increasing insulating glass energy efficiency – this has repeatedly been proven more than a million times over.

Now new: Using the optional finisher the patented bevel joint can be made invisible by request.

Get more information on this and to discover your personal consultant visit

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THE WORLD’S NUMBER ONE ANNEALING LEHR AND TIN BATH SOLUTIONS PROVIDER IMPRESSIVE YIELD PERFORMANCE COMBINED WITH EFFICIENT ENERGY CONSUMPTION Cnud Efco has been building annealing lehrs and tin baths roofs for the float and hollow glass industry since 1958. We offer high quality technical solutions in terms of engineering and equipment.

We enable our clients to successfully introduce new products and applications.

Our customers are the leading glass manufacturers around the world.

Cnud Efco’s success is based on a strategy of innovation. Our ambition is to be a beacon of knowledge our customers can always rely on.

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Glaston – Everything it takes to make great glass MACHINES Industry-leading machines and technologies for preprocessing and the heat treatment of glass.

SERVICES High-quality services from maintenance and spares to comprehensive software and machine upgrades.

We deliver machines and services that enable the production of the best functional glass products in the world. Our innovative and extensive portfolio of industry-leading glass processing machines and lifecycle services are designed to let you shine in your business.

When we make a promise of glass processing excellence, we see it through.

Glaston provides the most comprehensive range of high-quality glass processing technology and services. www.glaston.net

ENSURE THAT YOUR INVESTMENT PAYS OFF That is why our furnaces and conditioning systems are designed to reduce your total cost of ownership.

Reliability and efficiency built by design. www.sorg.de

The complete vertical solution Vertmax is the vertical solution for the production of shower doors, A P doors, balustrading and structural glass. The fully integrated and automated process includes all internal and external machining. From cut sizes the Vertmax will automatically produce finished glass products for the furniture and building industries, integrating grinding to size, squareness, polishing and arrising, drilling and routing. All types of glass including float, laminated and multi-laminated glasses are finished to the highest quality and precision, using proven Intermac CNC expertise.

Intermac Asia Office: tel. +603 8084 0056 enquiry.asia@intermac.com www.intermac.com

We have been choosing high quality materials and technologies since day one, but it’s our experience and competence that offers you a unique product.

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Sharp lasered!

• Ideal for all types of glass • Replacement of sandblasting by clean laser technology • High definition surface + sub-surface laser engraving of art and photography • Removing and structuring of paints and mirror coated glass • Amazing 3-dimensional designs inside the glass • Even finest lines can easily be processed • Glass surfaces remain non-porous and easy to clean

c-vertica 230 – 600 incl. options

Sub-Surface Engraving

Surface Engraving/ Matting

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Stripping

• Simple man and optional automatic operation with costs as low as 3$ per hour • Digital processing of glass without time consuming intermediate steps • Zero waste byproducts – no ink, no solvents, no chemicals • Easy scratch-free handling of glass plates • Space-saving, vertical orientation allows for small manufacturing footprint area Call us for more information about laser processing of glass. You will be impressed!

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High Emissivity Nano Particle Ceramic Coatings improve the radiant heat transfer from furnace superstructure to batch and molten glass Fuel savings of 4-10% or increase output Short payback period Also has significant advantages elsewhere in the glass process

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The World’s Number One FIC (UK) Limited Long Rock Industrial Estate Penzance Cornwall TR20 8HX United Kingdom Tel +44 (0) 1736 366 962 Fax +44 (0) 1736 351 198 Email general@fic-uk.com Web www.fic-uk.com Part of the BMT Group of Companies

Contents: AG 16-2

! c i n a p t ’ n Do

As we move through the first quarter, and the industry settles down to the norms of the economic cycles of a standard year, it is timely that focus shifts to the China Glass exhibition as it gives the chance to reflect on the uncharacteristically turbulent start to the year that the Peoples’ Republic has provided. However, although growth has slowed – as was inevitable in a maturing economy – the reality is that this is simply a pause for breath rather than a need for wholesale panic. In fact it is interesting to note that despite the “drop” to forecasts of 6.5% (and let’s face it, we would all be delighted to have such growth figures anywhere else), the reality is the initial reaction by financial markets has been way overblown. Indeed, as recovery continues, so industrial confidence does too. And let’s face it…when all the pin-striped, stock-market fuelled mayhem dies down, construction is still happening, people still need houses and cars, and the pharmaceutical and food packaging markets continue to expand and prosper. Hardly a cause for alarm…

Regulars 12 Welcome

EU bids for China clampdown.

16 Headline News

Openings, closures and industry moves from across Asia.

26 Global View

Our eye on the international arena.

20 People and Places

Laura Biason, Director of GIMAV and Vitrum, talks exclusively to AG.

30 Batch Raw material news and views.

32 Comment & Analysis Currency woes pile-up for China.

10

asianglass AG 16-2

38 www.asianglass.com

www.asianglass.com Features

Looking forward

38 Iranian: all set for lift-off

AG looks at how the opening of the Iranian economy could provide a welter of opportunities for suppliers, consumers and technology companies alike.

Architectural Glass Kiev 2016, Kiev, Ukraine

19-21 Jan

Glass & Aluminium Middle East, Cairo, Egypt

18-20 Feb

Fensterbau Indian 2015, Mumbai , India

25-27 Feb

AG lifts the lid on the continent’s leading glass tableware makers and assesses their relative fortunes and standings in the industry.

Baku Glass, Baku, Azerbaijan

1-2 Mar

PV Japan, Tokyo, Japan

2-4 Mar

60 Egyptian glass packaging markets

Istanbul Glass & Window Expo, Istanbul, Turkey 9-12 Mar

48 Tableware: the top 20

Yogender Malik discusses how Egypt’s container glass sector is enjoying a resurgence as economic conditions improve.

68 Glass processors in Indonesia

Jahir Ahmed discusses how improvements in spending power and aspiration are likely to have a long-term benefit to Indonesia’s glass processing industry.

China Glass, Shanghai, China

11-14 Apr

Glass & Aluminium Saudi Arabia Riyadh, Saudi Arabia

30 Apr - 3 May Glassman Middle East, Abu Dhabi, UAE

10-11 May

Windoorex, Muscat, Oman

15-17 May

SNEC, Shanghai, China

24-26 May

Mir Stekla, Moscow, Russia

6-9 Jun

Glass South America, Sao Paulo, Brazil

7-9 Jun

ICCG 11, Braunscheweig, Germany

12-15 Jun

Intersolar Eurpoe, Munich, Germany

22-24 Jun

June Glasstec, Duesseldorf, Germany

19-22 Sept

Glassbuild America, Las Vegas, Nevada

19-21 Oct

Glasstech Asia, Ho Chi Minh City, Vietnam

24-26 Nov

ZAK Glasstech, Mumbai, India

2-4 Dec

Cuba Glass, La Habana, Cuba

6-7 Dec

AFGM TBA ASEAN Federation of GM

TBA

www.asianglass.com 68

Photocredit SRK

Anaylsis 82 In Focus

AG looks at why Egypt is becoming the “stand-out” investment option for many Chinese companies…

Your favourite magazine is now available at the App Store…

86 Window

download today to see your first sample issue!

90 Refractory Zone

Asian Glass: now for mobiles, ipads and androids

Analysis and insight into Chinese output data..

In the latest of his exclusive articles for Asian Glass, P.Carlo Ratto discusses a need for glassmakers to be willing to fully embrace the financial benefits of low-cost manufacture. www.asianglass.com

AG 16-2 asianglass

11

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Welcome

E

uropean Union companies will be more willing to invest in China if the country’s overcapacity problems are reduced, said Joerg Wuttke, president of the European Union Chamber of Commerce in China.

CONTACT DETAILS

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Inside:

Iran: open for bus Tableware: the Asia iness? n top 20 Egyptian contain er glass Indonesian glas s processors

Wuttke said that the EU’s investment in China dropped PLUS! news, views, ana lysis and much, muc h more! by 25 percent last year. He said that China’s overcapacity actually makes it difficult for European companies in the home markets and also third markets. If the overcapacity problem is fixed, they will actually be willing to invest in upscale, sustainable products and projects.

“So if China is willing to go through with strong political will in order to eliminate the overcapacity, I think Europeans will be more interested in investing in upscale, top-end technologies, in those respective sectors,” he said before the chamber released a report Monday in Beijing about China’s overcapacity.

The European Chamber of Commerce in China released a new major report, Overcapacity in China: An Impediment to the Party’s Reform Agenda, which provides a detailed examination of the causes and consequences of overcapacity in eight key industries and analyzes the developments that have taken place since the European Chamber published its original report on this topic in 2009.

The new report explains that although the central government has made great efforts to address excessive production capacity, factors such as regional protectionism and weak regulatory enforcement have hindered policy implementation.

“Without a sustained effort to address it now, overcapacity may well seriously impede the effectiveness of China’s economic reform agenda,” he said.

The report provides 30 recommendations that should be taken to address this deep-rooted problem.

The EU Chamber hopes that they will also contribute to a strengthening of the government’s resolve to implement the core tenet of the Third Plenum’s Decision, establishing the market as the decisive force in China’s economy.

“A review of our original study showed that the action plan we proposed in 2009 is still relevant today. We hope that our analysis and recommendations for 2016 will result in concrete actions by Chinese policy makers,” he says.

“Although the Party’s annual Central Economic Work Conference has listed addressing overcapacity as a priority every year from 2007 to 2015, fundamental changes have not yet taken place. Tackling overcapacity is now more urgent than ever: the cost of maintaining the status quo is far too high.”

With the glass industry one of the main culprits when it comes to capacity, the sector must surely look to seize the opportunity to encourage more inward flows of money by getting its house properly in order.

Happy reading!

EDITORIAL Publishing Director Andy Skillen Email: askillen@asianglass.com Direct line: + 44 (0) 208 123 0196 Fax: + 44 (0) 207 183 7196

ADVERTISING AND DESIGN Advertising Sales Valerie Adamson Email: vadamson@asianglass.com Direct line: + 44 (0) 208 133 5273 Paul Russell Email: prussell@asianglass.com Direct line: + 44 (0) 208 638 0619 Production and design Tim Mitchell Email: tim@bowheadmedia.com Direct line: + 44 (0) 208 123 0839

RESEARCH Research Manager Alex Murphy Email: amurphy@bowheadmedia.com Direct line: + 44 (0) 208 123 0839

EXHIBITIONS AND CONFERENCES Contact the team on: Email: events@bowheadmedia.com Direct line: + 44 (0) 208 123 0839

Bowhead events Creating Opportunities: Delivering Results OVERSEAS OFFICES

China Professor Wen Lu and Wen Xin Email: 18980921123@163.com Tel: +86 28 8701 9077 Fax: +86 28 8701 9077 Bangladesh Jahir Ahmed jahir@asianglass.com India Yogender Singh Malik yogender@asianglass.com Sri Lanka Rohan Gunasekera rohan@asianglass.com

HEAD OFFICE Andy Skillen Publishing Director

Got a general enquiry? use enquiries@asianglass.com 12

asianglass AG 16-2

Bowhead Media Ltd, 57 Oaks Avenue, Worcester Park, Surrey, KT4 8XE United Kingdom Asian Glass (ISSN: 1475-6501), is published by Bowhead Media Ltd, registered in the UK no: 6127651

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ADVERTISER FEATURE

Antonini: building a brighter future Fosco Antonini founded his own company on 1946, exactly 70 years ago, together with his wife. The first name of the workshop was Antonini Meccanica Vetraria (Antonini mechanical glass).

Of course the founder chose an Italian name, he couldn’t imagine that his creation would have become a world known activity.

As soon as they became adults, their sons joined them and today there is a third generation working in the Company.

It is located in Empoli, a very small town in the centre of Italy, famous for being close to Florence and over the last few years, for having a football team in the premier league.

In 1946 there were several glass factories in Empoli, most important was the “Fiascaia”, producer of glass flagons for wine. It was there and in various other workshops Mr. Fosco Antonini worked for a long time before opening his own factory, reaching a large experience in the branch.

Antonini’s origins are those of a small artisan business, manufacturing tools and other equipment’s for glass factories; it is now an enterprise, specializing in the production of annealing lehrs, decorating lehrs, tempering lehrs, lehrs for glass blocks, lehrs for special thermal treatments, mould preheating kilns, mould preheating chambers, cold end spray systems, scrapers; more, in the last ten years Antonini srl has developed and increased production of lehrs for HV insulators, meeting safety and low consumption requests.

As it was seventy years ago everything is made in Italy and strictly supervised.

The Company is now known all over the world and it is used to attending all main industry exhibitions including China Glass, which is becoming more

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asianglass AG 16-2

important year by year.

Antonini exhibits at China Glass in the Italian space of Gimav association.

Exhibitions have been for this manufacturer an important springboard and are now a good showcase for gaining new contacts and providing news about products and engineering.

The Association GIMAV has played an important role in the growth of Antonini, it gave the owners the opportunity to meet other suppliers of the same industry, and a chance to compare problems, solutions, business, markets, resulting in eventual cooperation and friendships.

Antonini has sold more than 60 machines in China and the business has grown specifically during the last five years, thanks to the high quality and flexibility of Antonini’s equipment.

Antonini’s desire is that the lehrs are not simply standard, machines are like dresses handmade for each Customer. Glass factories often have different exigencies, Antonini’s focus is to study and to prepare the right solution for everyone, in the shortest time.

Assembling of machines on site is directly followed up by this supplier and the post-sale service too. The technicians travel from Italy all over the world according to the Customers’ needs.

From 2010 Antonini srl has engaged Ninesun Consulting Company as agent for the China market.

Today production of Antonini srl is destined to more than 80 Countries and production capacity can reach 100 machines per year! Managing system and mentality of this Company success in mixing experience and tradition with innovation and globalization, looking to the next step just when the new one is reached.

www.asianglass.com

HEADLINE NEWS ASIA Gas agreement is not great news for glass Israel The last of Israel's regional distribution licenses will enable the Rotem Natural Gas company to deploy a pipeline network around the city.

Minister of National Infrastructure, Energy, and Water Resources Yuval Steinitz has signed a license for establishing a natural gas distribution network in Jerusalem, the ministry announced today. The distribution license will enable the Rotem Natural Gas company to deploy a pipeline network connecting industrial zones, enterprises, and major consumers in Jerusalem and the surrounding area to natural gas. This is the last of the six regions for which natural gas distribution licenses have been signed. The cost of the work in

Jerusalem is estimated at NIS 320-350 million.

Due to the difficulty of the venture caused by Jerusalem's high density population, the Ministry of National Infrastructure, Energy, and Water Resources awarded the company a NIS 60 million grant. The areas to be connected to the network include the Givat Shaul industrial zone, Hadassah Medical Center Ein Kerem, the Hebrew University of Jerusalem, the government complex in East Jerusalem, etc.

Rotem Natural Gas, owned by Rimon Consulting & Management Services, C. Mer Industries Ltd. (TASE: CMER), and Tahal Group International BV subsidiary TMNG, overcame three other groups in the tender.

Distribution licenses have already been granted for five regions: the Negev and central regions (2009), the Or Hadarom region (2012), and the Hadera and inland valleys region and the Haifa and the Galilee region (2013). Substantial progress in the switching of enterprises and public institutions to natural gas, however, is lacking. In addition to planning and bureaucratic obstacles, the main difficulty now is that since oil prices have plummeted 70% during the past year, it is not worthwhile for enterprises and public institutions to consume natural gas.

However, Phoenicia Flat Glass Industries CEO Eran Haimovich previously battled to switch his company from the consumption

of polluting fuel oil to natural gas, and the state invested NIS 60 million to connect the company plant to natural gas, but he now wants to go back to using fuel oil.

He asserts that this will save his plant NIS 150,000 a month.

If enterprises do not wish to consume gas, it will not be worthwhile for the distribution companies to deploy a pipeline network to supply gas. In view of this state of affairs, the Ministry of National Infrastructure, Energy, and Water Resources last month held a special meeting on the subject, and sources have said that an increase in the grant for enterprises is under consideration for the purpose of making it worthwhile for them to switch to natural gas.

Saint Gobain to set up 5th float line Nafis commissions new glass plant India French glass major, Saint Gobain has expressed its intention to set up another float glass plant in the near future according to Saint Gobain India’s Managing Director, Anand Mahajan. Saint Gobain currently operates four float glass plants in India. Two of its float lines are located in the Southern part of the country at Sri Permpudur.

The company acquired its third float glass plant from Sejal Glass in the state of Gujarat. It started commercial production from its fourth float glass plant in early 2015 at Bhiwadi in the state of Rajasthan. Saint Gobain’s Rajasthan plant has an installed capacity to produce 1000 TPD of float glass and is largest capacity plant in the country.

The company would be setting up its proposed new float plant in the state of Tamil Nadu. In addition to float glass plant, it will also invest in a new coating line at this site. Company’s second coating line will enable it to increase the portfolio of

16

asianglass AG 16-2

Iran high value added glasses in the country. Saint Gobain hasn’t yet finalsied whether the fifth plant will come in the vicinity of its existing plant at Sri Perumpudur or at a new location.

According to Anand Mahajan, “We are a 5,000 crore company in India. In an ideal world, we would like to double that in five years. But the world is not ideal.

India has not grown as much as we had expected even for us a year ago. And I think that’s more directional. It’s a target that we like to achieve. We are taking it as it comes. We are investing.

It’s not holding us back, in terms of investments but INR 10,000 crore is directional; we would like to happen.”

Nafis Glass, a 100% private container glass producer in Takestan / Iran, has successfully commissioned a new glass plant.

Nafis Glass is the sister company of Mofid Glass and operates two furnaces for pharmaceutical products as well as containers.

The new Nafis Glass plant and its building are prepared for two large furnaces and the initial capacity with 360 t/d was commissioned in January 2016.

Sorg designed and supplied the key equipment for the new 125m² state-of-the-art regenerative end-fired furnace with 4 production lines for

container glass production. The forehearths are all SORG 340S type: SORG also supplied the special superstructure refractory material including all equipment for the glass conditioning section.

One photo shows two samples of the production of the first line of this furnace. Further interesting information will follow in the near future.

Asian Glass: mobiles, ipads & androids

www.asianglass.com

AGC hits union issues Philippines The Center for Trade Union and Human Rights in the country has criticized the Japanese company Asahi Flat Glass Philippines for alleged union-busting after it retrenched 44 workers including union officials, while the collective bargaining negotiations are ongoing.

Asahi Flat Glass Philippines manufactures different kinds of glasses, such as solar glass, glaze glass, figured glass etc for industrial, commercial and residential use. It is an affiliate of global giant Asahi Glass Company of Japan. Its factory in the Philippines is located in Pasig City.

In a statement, Roben Casalda, documentation coordinator of CTUHR said, the collective bargaining negotiations are derailed because of the dismissal of key officials of the local union, Asahi Glass Philippine Labor Union affiliated with the National Federation

of Labor Unions and Kilusang Mayo Uno. On January 11, AGC dismissed 44 employees including regular rank and file workers, four union officials, including its vice president, auditor and two members of the board, and some supervisory employees.

Casalda said the management announced the closure of its solar department due to the alleged shutdown of its major client, Toshiba.

“However, the local union noted that the company took the affected agency workers in and placed them in other two departments leaving mostly union members out,” said Casalda.

“The move of the Japanese firm is a plain and direct attack on the union of rank and file workers in the Asahi Glass as the dismissal took place.”

“The report of contract employees being transferred

to other departments only shows that the closure of one of AGC’s departments need not result in workers retrenchment or dismissal. But the company is using the alleged loss of its client, Toshiba, to single out and discriminate union members by dismissing them, thereby effectively undermining the union which is negotiating for a new agreement,” Casalda added.

CTUHR also cited that AGC has been contractualizing its labor force in the last two decades. From over 800 regular workers in the early 1990’s, the total number of regular workers declined to only 181 in 2004, while the number of contract or temporary workers increased.

Since 2008, the number of regular workers did not change though its total workforce ranged between 500 to 700 workers, depending on seasonal demands from clients.

As the number of permanent

workers declined, the number of union members also shrunk to 99 following waves of retrenchment beginning 2008 despite a CBA provision stating that the company must maintain at least 192 regular employees. Last year, the company also dismissed 37 workers purportedly to “prevent further losses” while hiring temporary workers.

Casalda said the alleged losses are used by companies in the country as reason to attack unions. He said this has also resulted to joblessness.

“Under the Aquino administration, it has become so easy for companies to retrench or dismiss employees under the pretext of losses without worrying about obligations. You cannot find meaning in the muchhyped economic growth under this administration, but growth for the few and destitution,” he said.

Solar glass expansions to become in vogue?

UAE A Dubai company has won an order to supply a solar glass facade to a school in Denmark in what is one of the largest projects of its kind in the world.

Now it wants to wants to introduce the same technology in buildings across the UAE. Emirates Insolaire, a unit of Dubai Investments, will supply about 12,000 coloured solar glass panels to the Copenhagen International School.

Once fitted, the panels will create one of the largest photovoltaic (PV) facades of its kind, the company said.

The facade will supply more than half of the school’s annual electricity consumption, producing about 300 megawatt hours per year.

www.asianglass.com

The panels are part of the building’s photovoltaic system, which allows solar panels to be integrated directly into building structures such as windows.

“The project is very important for Emirates Insolaire and offers the company significant inroads into Europe and the rest of the world for its unique technology," said Rafic Hanbali, a managing partner of Emirates Insolaire.

“Emirates Insolaire has brought in a paradigm shift in solar applications by introducing aesthetic appeal to facades coupled with added efficiency."

Construction has started and is expected to be completed by the end of June.

It also plans to install its Kromatix technology

on two buildings in Dubai Investments Park.

Mr Hanbali said the company was targeting a little more than 1 MW by the end of the year.

“But what I expect is to have about 15,000 to 20,000 square metres of our technology installed on 10 to 15 buildings over the next 20 months in Dubai, and about 50,000 to 70,000 sq metres worldwide."

He said the technology could meet from 10 to 50 per cent of a building’s energy requirements.

In Dubai, each square metre will produce above 200 kWh annually.

Stephane Le Gentil, the chief executive of Etihad Esco, a Dubai Electricity and Water Authority joint venture service

company, said the priority should be to reduce energy consumption. “We look at how to make savings, and then we’ll look at what we can do for alternative power," he said.

News, view and analysis

www.asianglass.com AG 16-2 asianglass

17

News

TIAMA secures deal with Huapeng China In an exclusive Interview with Asian Glass, Shandong Huapeng General Manager: Mr Zhang De Hua, discusses the company’s strategy and why it has opted to choose international quality inspection equipment over and above a raft of local options: Asian Glass: Before introducing your company, could you please briefly present the current Chinese glass packaging market?

Mr ZHANG DE HUA: Chinese glass industry is facing strong consolidations, the new environmental regulations are making it difficult for small glass factories to survive. The market leaders will certainly shape tomorrow’s glass industry.

AG: Could you please introduce your company, Shandong Huapeng Glass and your strategy in this harsh time?

Mr ZHANG DE HUA: Shandong Huapeng is one of China’s leaders in Glass packaging and the largest manufacturer of crystal-like tableware. We are taking advantage of today’s industry evolution and our company is opening new factories all over China. At this stage, we already have more than 7 glass factories. Our company strategy is to bring higher quality products to the local market as well as carrying on our strong development of international sales. For this reason, Huapeng chose to use international standard imported equipment and we voluntary selected high quality international standard inspection equipment as well.

In 2015, Huapeng upgraded one complete new production line with TIAMA latest inspection machines MCAL4 (sidewall & dimensional), MULTI4 (finish & base) and MX4 (carousel technology) equipped with ATLAS systems (non-contact check detection). Before May 2016, Huapeng will be installing additional 12 machines: MCAL4, MULTI4 and MX4 with ATLAS. AG: What is the Shandong Huapeng main range of products?

Mr ZHANG DE HUA: Shandong Huapeng has been positioning itself as one of the leaders for production of wide-mouth jar packaging,

as well as all kind of bottles shapes for wine, liquors, olive oils….

We manufacture for China’s market but also a large share of our production is for export market in the APEC regions. These containers require a very high quality level of inspection and the Tiama inspection equipment are helping us to achieve the highest quality standards required by our customers and ensure our product safety.

AG: I also heard Huapeng was a manufacturer of high quality table-ware Mr ZHANG DE HUA: Yes, that is right, Huapeng Glass is a leader for the production of high quality crystal wine glass, lead-free wine glass and we provide our products to famous five stars hotels in China as well as export them worldwide, our main markets are South Korea, Japan, the United States, Canada and Russia.

Sisecam and P-D in glass fibre project Turkey Sisecam Group of Turkey, main shareholder of Cam Elyaf Sanayii A.Ş. and P-D Group of Germany, mother Company of P-D Fibreglass announced that both companies start negotiations to set up a new glass fiber manufacturing plant in Turkey.

The negotiations have been started to create a partnership that aims to strengthen the position of both companies and to create synergy through sharing expertise and resources. Potential joint business will aim to create value to customers by providing them with a wide range of high quality products and the expanded manufacturing, distribution and service capabilities.

Sisecam Group is an industrial group operating on an international scale in the fields of business, encompassing all the key areas of glass production

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asianglass AG 16-2

(i.e., flat glass, glassware, glass packaging and glass fiber), and soda ash and chromium chemicals. ŞiŞecam carries out its production activities in 13 countries with 44 plants and a workforce of over 21.000 people and exports to 150 countries, which constitute half of its total sales. In global terms, the Group is the third biggest manufacturer of glassware, the fourth largest producer of glass packaging and the fifth largest producer of flat glass. And in the chemicals sector, Sisecam is the world’s leading supplier of sodium dichromate and basic chromium sulfate, as well as Europe’s fourth largest soda ash producer.

Cam Elyaf San. A.Ş., an affiliated company of ŞiŞecam, is the sole manufacturer of glass fiber in Turkey. Cam Elyaf’s specialized glass

fiber reinforcements find applications in advanced molding and compounding techniques throughout the world more than four decades.

Cam Elyaf serves to sectors of wind turbine blades, interior/ exterior parts of automotive, engineering plastics, marine, industrial applications and construction etc.

P-D FibreGlass, a German based fibre glass producer, manufactures an extensive range of fibre glass products, from yarns and rovings to woven rovings, mats, multiaxials and coated fabrics. The group operates 9 production sites in Europe, Asia and North America. PD FibreGlass has focused its business activities on customized solutions for various industries, from building and infrastructure to automotive and aerospace industry.

NEWS IN BRIEF Cugher Glass has achieved another important goal: an agreement with AIS – Asahi India Glass Limited for the supply of a backlites silk screen printing automotive line has been concluded.

The core of the Backlites line is represented by the Series G 100×160 fully automatic silk screen printing machine, definitely the perfect solution for backlite printing production needs.

Asian Glass: mobiles, ipads & androids

www.asianglass.com

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MULTIPOINT THICKNESS SENSOR MTS10/05 STAND-ALONE OR INTEGRATED IN HEYE SMARTLINE Covers all critical areas of a container Flexible combination with single point sensor Superior chromatic confocal method Independent of measuring range and angle Suitable for round and non-round containers

www.heye-international.com

News

Schueco India in Asoka tie-up Sri Lanka In a recent geographic expansion for Schueco India operations in another country, Schueco has tied-up with Asoka Glass & Mirror.

The fabrication partner is a renowned name in Sri Lanka and is considered a pioneer in the glass industry and has been in existence since 1946.

Asoka Glass exports more than 80 per cent value added glass from Sri Lanka.

Schueco, a Germany based Aluminum Extrusion Giant has its presence in around 80 countries worldwide and is the leader in the Architectural Aluminum Facade Industry.

Asoka Glass becomes the first company to offer such world class solutions to the growing architectural skyline here in Sri Lanka. Rajeev Antony, Managing Director, Schco India said "Our association with Asoka Glass is a very important step in tapping into the evolving Sri Lankan facade and fenestration market which is growing at a rapid pace.

The suitability of Schco Aluminium Systems is ideal to Sri Lanka as it also enjoys a tropical climate with similar demographics as compared to India. Owing to a stellar background and experience in

glass industry, we see a very strong partner in them and will extend support in meeting the common objective of executing world class projects in Sri Lanka."

Joint Managing Director of Asoka Glass,Mahinda Jinasena speaking on the occasion highlighted that Asoka Glass has carved a niche as the leader in supply of latest trends in the architectural glass industry. He further said that with the Agreement that they are coming into with the prestigious Schueco today, and soon setting up a fully fledged Aluminium Fabrication

“Zombie” plants cause increasing concern China Some 75% of demand for float glass comes from real estate.

However, the new construction area has continued to decline since 2014 and a large number of uncompleted projects are left behind. Lack of demand and capacity expansion led to profit shrinking and heavier losses for the float glass enterprises, thus creating a group of zombie enterprises.

Although in recent years, photovoltaic glass enterprises were not in loss generally, the majority of the enterprises were only at the breakeven point, and now, coupled with the current serious overcapacity of photovoltaic capacity, spare capacity of the industry is higher.

It can be seen from statistics obtained by Asian Glass, that production capacity of float glass showed a rapid expansion before 2014 and the growth slowed as that year progressed. Since the second half of 2014, production capacity has continued to decline. Current operating capacity has dropped by 16,000 t/d compared with the highest of the history, a decline of 9.87%. Due to the decline

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in demand and substantial profit shrinking and heavier losses for the many float glass enterprises, some enterprises unable to support and cut or stop production, and even declare bankruptcy, including large enterprises such as Zhejiang Glass and Jiangsu Farun. In addition, Jinjing Group also stopped operation of Langfang and Beijing float lines.

According to recent analysis, there are 221 operating float lines with capacity 145,980 t/d in China. In addition, there are 72 float lines in shutdown or cold repair status and their capacity is 31,060t/d, accounting for 16.61% of total production capacity. The unused capacity is so high that float glass industry is in serious overcapacity. Some enterprises are insolvent, unable to regenerate, so called “zombie enterprises". Of these 16 float lines are planned to fire and the remaining 56 float lines will continue to shutdown, most of them have stopped operation for a long time.

It is also thought that there are 36 operating PV glass kilns with capacity 15,070t/d.

Moreover, 56 PV glass kilns with capacity 10,160 t/d were in shutdown, cold repair and switching in the past a few years. Of these 41 kilns with capacity 7,740 t/d were in shutdown and cold repair and all stopped operation before 2014. That means unused capacity rate reaches 60.42%. Around half of the kilns have capacity less than 200 t/d each and basically do not have the ability to resume production.

Supply side reform is the focus of the reform in 2016, with a bid to cut excessive industrial capacity being the most important factor. Currently the excessive capacity policy for steel and coal industries has been laid out and a centralized, government-backed policy for the flat glass industry will be out soon. However, the float glass lines are heavy investment projects and local governments want to protect local enterprises. It is said that Jiangsu Farun will be taken over by other enterprises and 4 lines will be re-operated in this year. So eliminating zombie enterprises is quite difficult and has a long way to go.

and installation outfit, they are sure that they will be one more step above "One Stop Shop" in this industry, as nowadays Developers, Architects, Consultants and Contractors prefer single point sourcing which will make their life easy in project management.

Asoka Glass & Mirror, a Joint Venture Partner of the Fairway Holdings Group, one of the leading property development company in Sri Lanka, has over 70 years expertise in the Glass industry and has a vast portfolio of reputed commercial and residential projects to its name.

Solopharm signals end to upgrades Russia The production of liquid sterile drugs at Solopharm in St Petersburg, is finally nearing reality. The company has invested 2,400m. rubles in upgrades and has now completed the establishment of a 3,500 sq metres “clean room” area capable of producing class C and E drugs.

This, together with 8 new filling lines, will allow the company to achieve its stated ambition to become a leader in the supply of hospital-based sterile-liquid pharmaceuticals.

An additional 2 automatic lines for the production of injectable dugs will also be installed, allowing for the production of 300m. glass vials per year. The delivery of these lines is expected to be in July 2016.

To cope with the expansion, the company has also increased the capacity of its water treatment facility by three-fold.

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Milestones for major makers China In the last 18 months, a large number of flat glass enterprises have switched to production of more intensively processed and valued-added products, such as coloured, ultra-clear, coated, insulated and electronic glass.

The flat glass enterprises on upstream will gradually cover the downstream sectors. According to incomplete statistics, nearly 80 float glass lines, accounting for over 20% of the China float glass capacity, were transformed to produce higher value-added products during the last 12 months.

Luoyang is the old large-scale float glass enterprises and owned 8 production lines with annual capacity of 26 million cases (1.30m.t/y). Because of narrow margin or even loss for flat glass production LFG was seeking for transformation. Bengbu Research Institute of Glass Industry has created a new technology for production of ultra-thin glass during 2014-2015. LFG carried on technical cooperation and then deep reorganization of assets with Bengbu Institute.

LFG withdrawn from ordinary float glass market and switch to on-line coating and ultra-thin electronic glass with high added value and technology content.

As the glass market is in downturn, Qinhuangdao Yaohua Group i signed a framework

agreement on reorganization with Triumph Group. Yaohua Group will be changed from production of ordinary float glass to high technology content and vaue added products by technical and technological reform of existing float lines. A new glass, new energy, new materials, industrial park will be constructed in Qinhuangdao in next 3 to 5 years, with investments on electronic glass solar industry and high boron glass and related sectors.

According to our recent survey, other projects of intensively processed glass introduced in 2015 are listed below.

• Golden Birch: Ultra-thin optical glass project, total investment RMB 6b., construction started.

• Shandong Jinjing & PGW (US) joint venture: Energy-saving auto glass project, 1st phase investment USD 60m., expected operation in January 2016.

• Wuhan Changli: Float lines switch to production of high end glass.

• Corning Hefei (Anhui): LCD substrate glass project, total investment USD 1.3b., planned operation in 2018Q3.

• Kibing Changxing (Zhejiang): Low radiation on-line coated glass project, capacity 600t/d, fired.

• Fujian Lianxufeng: Five tempered and Low-E glass lines, investment RMB 110m., capacity 3m.m2/y, in operation.

• IRICO: production of 8.5 generation glass substrate is planned.

• IRICO Hefei (Anhui): photovoltaic glass project, capacity 650t/d, fired.

• AGC Huizhou (Guangdong): Display glass project, investment RMB3.2b., construction started.

• Kibing Pinghu (Zhejiang): No.1 float line transformation project, capacity 600t/d auto glass (<3mm), completed.

• Fuyao Tianjin: Auto glass project, investment RMB 1b., settled down.

• CNBM New Energy Hefei (Anhui): Photovoltaic glass line, 1st phase investment RMB 1.6b., fired.

• Fuyao Chongqing: The second phase of auto glass project, total investment RMB 800m., capacity 3m.sets/y, construction started.

• NEG Xiamen (Fujian): TFT 8.5 generation substrate glass project, investment RMB 4.14b., capacity 25m.m2/y, operation in 2015.

• Hubei Feilihua: Quartz glass project, 1st phase investment RMB30 m., capacity 1,000t/y quart glass bar, completed in November.

• LFG: Ultra-thin electronic glass project, in operation.

• Kibing Zhangpu (Fujian): Coated, Tempered and insulated glass project, investment RMB 1b., capacity 19m.m2/y,

environment protection approved.

• Kaili Kairong: Low radiation coated glass project, 1st phase investment RMB 600m., capacity 6.50 m.cases/y.

• Gansu Huayi: Glass deep project, total processing investment RMB 200m., capacity 10m.m2/y. 1st phase completed.

• Zhangjiajie Yongxong: Low radiation coated glass expansion & transformation project, total investment RMB 80m., capacity 2m.m2/y, construction started.

• Anhui Kinshow: Display glass project, total investment RMB 500m., capacity 20m. pcs/y double-sided vanishing conductive film glass, in operation.

• Fujian Yaocheng: Tempered glass project, total investment RMB 100m., capacity 2m.m2/y, in operation.

• CSG Yichang (Hubei): 0.33mm ultra-thin electronic glass line, capacity 150t/d, fired.

• CSG Qingyuan (Guangdong): Ultra-thin electronic glass line, investment RMB 500m., capacity 1m.m2/m, in operation.

• Kibing Lilin (Hunan): Ultra clear glass line, capacity 800t/d, in operation.

• With the reform and upgrade of flat glass industry in 13th Five Year Plan (20162020, it is expected that the transformation tide will continue for a period of time.

Firozabad feels “let down” by government India Firozabad's beleaguered glass industry, which was hoping to get a fillip from this year's Union Budget, was left disappointed as local manufacturers said the small-scale industries were "neglected" during the annual fiscal announcement.

Glass manufacturers in Firozabad said the government's decision to slash basic customs duties on silica sand by half (from 5% to 2.5%) will have little effect as the proposal will impact miners and not them.

Rajkumar Mittal, chairman of Uttar Pradesh Glass

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Manufacturers, said, "Industrialists had high hopes from this budget, but have been left highly disappointed. It will not help the glass or bangle manufacturers, especially the smaller units."

A similar sentiment was shared by Devicharan Agarwal, a prominent glass manufacturer.

"Government has made several announcements for the rural sector and farmers, but has completely neglected the small scale industry. There is no talk of promoting glass exports," he said.

In Firozabad, there are about

200 glass-manufacturing factories and 6 lakh people are employed in the sector. The glass industry's annual turnover is estimated to be around Rs 4,000 crore.

However, the bangle town's once-flourishing glass industry today faces a threat from cheaper Chinese items. Influx of Chinese products into the market is posing a serious threat to the century-old glass industry, which is India's biggest glass cluster.

It is estimated that Chinese glass products today occupy 80% of the local market. Colourful bangles, laboratory apparatus

and various other glass products have been manufactured for over a century in this small industrial town, but manufacturers from the industry are worried over the entry of Chinese products in the market.

News, view and analysis

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News

AC&C confirms new distribution agreement Australia Architectural Glass & Cladding (AG&C) has signed a distribution agreement with Global Security Glazing (GSG) for the distribution of their impact, bullet and blast resistant products throughout Australia, New Zealand and Asia Pacific markets. Global Security Products is the 6th distribution agreement that AG&C has signed in the past 6 years.

“We are very excited to bring Global Security Glazing into the Architectural Glass & Cladding family of products.” says Brad Woods, Executive Director of Architectural Glass & Cladding.

“The Company’s product line fit nicely into our current landscape.

Overall, our distribution agreements are geared for superior quality, products and customer service. This addition will only advance that effort.”

Woods continued “Architectural Glass & Cladding is very committed to this industry and will continue to build upon our platform companies through a larger product offering. We will continue to be very active in the marketplace.”

“We are glad to announce the addition of Architectural Glass & Cladding as an authorized distributor for the Global Security Glazing line of products for customers in Australia, New Zealand and Asia Pacific. AGC currently offers a unique portfolio of specialty products for the façade. With this addition Global Security Glazing looks forward to growing its line of security products for exterior applications in these markets”, says Hernán Gil, Director of Business Development for Consolidated Glass Holdings.

Headquartered in Selma, Alabama USA, Global Security Glazing (GSG) has become the leading single source for the industry’s security glazing requirements. GSG’s products are fully tested to specific standards and threat levels for projects requiring Bullet, Attack and Blast resistant glazing, such as Courthouses, Embassies and other Government Buildings, Correctional Facilities, Police Stations, Zoos, Hospitals and Stadiums.

Global Security Glazing is a member of the Security and Specialty Division of Consolidated Glass Holdings, Inc., a fabricator and distributor of architectural and specialty glazing and metal products for several markets.

The family of companies also includes Dlubak Specialty Glass

Corporation, North American Specialty Glass, Columbia Commercial Building Products and Solar Seal.

Architectural Glass & Cladding is a leading supplier of bespoke and high performance glass products, sunshade and daylighting solutions as well as innovative specialty glass façade products.

Our extensive knowledge and respect within the industry has led to AG&C being appointed as the exclusive Australasian distributors for OKALUX, CRICURSA, SEFAR, PROFILIT(TGSG), REYNOBOND, REYNOLUX and REYNODUAL (non-combustible cladding).

Headquartered in Tweed Heads, NSW, Australia AG&C continues to expand its product offerings to ensure unsurpassed quality and the highest customer service to its customers.

Nippon Electric Glass raises confidence In Malaysia Flat glass supply falls, but lines increase

Malaysia Nippon Electric Glass (NEG), a leading Japanese manufacturer of specialty glass recently announced that it will make a further RM80 million investments to expand its production facilities in Malaysia by July this year.

“NEG’s additional investment shows the capabilities of its plant in Malaysia to meet the growing demand for highquality glass tubing. This also reaffirms Malaysia’s value as a sustainable and profitable base in South East Asia. More excitingly, this investment brings along new technologies for glass melting and forming process,” said Dato’ Azman Mahmud, Chief Executive Officer of MIDA. The expansion will increase NEG’s production of glass tubing for pharmaceutical and medical use, such as ampules and vials, as well as for applications in the manufacture of prefilled syringes and pen injections.

The glass tubings are highly effective in minimising the risk of contamination by foreign substances and eliminating

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risks of medical errors.

Currently, NEG Malaysia is the only manufacturer of glass tubing for pharmaceutical and medical use in ASEAN. “NEG has been in Malaysia for 20 years. Since its establishment, the company’s operations have grown remarkably, expanding and diversifying its existing operations in Shah Alam many times. In fact, NEG has just completed its RM700 million investment to increase its production line for chopped strand glass fibre last year.

So far, NEG has invested over RM6 billion in Malaysia, and employed more than 1,000 Malaysians. This expansion project will provide 30 additional job opportunities for Malaysians particularly in Selangor. The company conducts on-going talent development programmes to ensure its workforce meets the requirements of NEG’s business objectives.

Supporting industries in Selangor as well as other parts of Malaysia, such as banking, financial services and other

local ancillary services will also benefit from the potential business opportunities that will arise from this expansion.

Currently, 369 local suppliers have benefitted from NEG’s presence in Malaysia. NEG also contributes positively to Malaysia’s exports as 98% of all its glass specialty products are for the export market,” Dato’ Azman further added.

Japan has been among Malaysia’s largest source of foreign direct investments in the manufacturing sector. As at December 2015, a total of 2,602 manufacturing projects with Japanese interest, involving total investments of RM85 billion, have been implemented in Malaysia. Japanese investors are exceptionally strong in the electronics and electrical products, non-metallic mineral products, basic metal products, petroleum products including petrochemicals, chemical and chemical products, as well as transport equipment. Japanese investments have benefitted more than 342,837 Malaysians in the form of employment.

China Output of flat glass was 739 m.cases (36.95 m.t) for 2015, down by 6.81% year on year.

However, although production capacity of flat glass increased gradually the growth rate has been decreasing since 2013 and operation rate of float lines was 69.87% in 2015, far lower than previous years.

After reduction of production capacity during 2014-2015, the growth rate of domestic production capacity decreased gradually. The net reduction of capacity was 40 million cases (2 m.t) in 2015.

It is planned that 12 new float lines with annual capacity of 60.60 m.cases (3.03 m.t) will be in operation in 2016. It is expected 10 float lines with annual capacity of 38.40 m.cases (1.92 m.t) will be in re-operation after cold repair. Moreover, 34 float lines with annual capacity of 11,770 m.cases (5.885 m.t) may be in cold repair.

It is expected that the output of flat glass will be 699 m.cases (34.95M.t), down by 5.41% by the end of 2016.

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News

Global View

AGC to build 2nd float line

TANZANIA

BRAZIL AGC Asahi Glass (AGC), a worldleading manufacturer of glass, chemicals and hightech materials, announced today that it will invest approximately 18 billion Japanese yen in its consolidated subsidiary, AGC Glass Brazil, to build a second float glass production plant in the southeast region of Brazil. The new plant is scheduled to be completed by the end of 2018, which will increase AGC’s glass production capacity in the country to 2.4 times the current level.

Positioning “business expansion in emerging markets” as one of its growth strategies, AGC established AGC Glass Brazil in 2011 and its operations started in 2013. Today, AGC Glass Brazil manufactures and supplies float glass for architectural and automotive uses, mirrors, fabricated glass products for

architectural use, and laminated/ tempered automotive glass. Its business is showing steady growth with increased market awareness for the high-quality, wide-ranging products and services.

With a relatively young population of approximately 200 million people and abundant natural resources, Brazil is expected to maintain its economic growth from a medium and long-term perspective. The demand for architectural glass and automotive glass is also projected to grow. In such a business environment, AGC will enhance its production capacity in Brazil to 530,000 tons per year, up 310,000 tons from the current 220,000 tons a year. Under its management policy, AGC plus, the AGC Group aims to increase sales by capturing growing demand in emerging countries.

Vitrum 2017 dates released ITALY The 20th Vitrum, international biennial trade show of machinery, equipment and special products for flat and hollow glass processing will take place in Milan on 3-6 October 2017.

Leading industry players and glass companies from around the world will be at the Fiera Milano exhibition complex in Rho with their latest glass offerings for industry, construction, architecture, furniture, homes, and the pharmaceutical and automotive sectors.

Vitrum is a premier international event with the last session hosting exhibitors from 24 countries who were keen to showcase their cutting-edge technologies to a discerning public. State-ofthe-art products, special events dedicated to technical and scientific developments, cultural highlights, and excellent trade opportunities are only some of the standout features that make Vitrum a must-attend showcase for the glass trade worldwide. The figures speak for themselves: the previous sessions of the

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Sino-float j-v construction underway

exhibition attracted more than 18,000 visitors to Milan, over 50% of whom from abroad.

Vitrum 2017 will bring together all the sectors of the glass industry and more. According to Vitrum President Dino Zandonella Necca: “This is a very good time for the glass industry, and numerous new opportunities are opening up. We are working to make Vitrum the ideal forum for all the glass trade: experts and buyers, engineers, architects and designers, research centers and universities, and cultural associations. We are committed to building new synergies with all the players in this industry, in production as well as in science and technology. Our aim is to offer the best business opportunities to the companies that will be with us at the 4-day Vitrum and to foster the special culture surrounding glass which can offer us a glimpse into the future of the industry through research and innovation, with a special focus on the creative potential of this precious material”.

A massive float glass manufacturing company is under full-swing construction in Mkuranga, Coast Region with the aim to meet the increasing demand for glass products in Tanzania and other East African nations.

The Glass Industry Group of Africa (GIGA) is expected to churn out 600 tons of float glass a day, for which it will rank as the largest glass producer in the East Africa Community.

Buildings of major plants and offices of GIGA have cropped up with the remaining to be completed towards the end of 2016.

The company is planned to run into production in 2017.

According to Zhu Jinfeng, a Chinese Tanzanian and a major investor of the GIGA project, GIGA will create 800 job

opportunities in Tanzania and help promote related sectors of the Tanzanian economy.

Zhu adds that GIGA will import a production line from China with an annual output of 135,000 to 168,000 tons and that a glass production line of such a scale requires an investment of 80 million US dollars.

There are only several glass bottle factories in the East Africa Community, and the EAC countries have to rely on imports when it comes to float glass, the demand of which increases by 6-7 per cent year a year.

According to the GIGA feasibility report, Tanzania has favourable conditions for glass manufacturing because of its rich resources in silica sand, limestone, dolomite and soda ash, all essential raw materials in glass making.

Record year for electric melting specialist UNITED KINGDOM UK-based electric melting specialist Electroglass has reported a ten-year record in its 2015 results.

“Despite uncertainty and slow-down in a number of world markets, we have had an excellent year”, says Managing Director Richard Stormont. “All-electric furnace and forehearths projects for fluoride opal tableware glass, in south Asia in particular, have been significant contributors to this, along with borosilicate electric forehearths work in the USA, gas-to-electric soda-lime forehearth conversions in South Korea, electric boosting projects in Indonesia and elsewhere, and continuing development and sales of our Precision Control Bubbling Systems.”

“Also holding up well are sales of hardware, notably the Molycool and Vertical Splashguard ranges of electrode holders and our dry-type forehearth electrodes,”

he adds “with the rest of 2016 seeing the commissioning of several recently supplied systems and work expected to start on a number of significant new projects for the company”.

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News

Internorm awards LISEC with the "Supplier Award 2015" EUROPE With the annual awarding of the "Internorm Supplier Awards", Europe’s leading window brand Internorm has been honoring supply partners for outstanding performances for more than 25 years. The Internorm Supplier Awards 2015 were awarded in the three categories Product components, Investment goods and Service as part of the festivities on the occasion of the 85-year anniversary of Internorm in Vienna on February 4th 2016. The award in the category Investment goods was awarded to LISEC Austria GmbH from Hausmening.

"LiSEC has delivered a top performance in our major investment project tempering furnace. Apart from the best possible support and the absolute adherence to delivery dates we would like to emphasize that LiSEC has not only complied with the agreed upon performance data but has significantly exceeded them", this is how the Internorm purchasing manager

Helmut Freynhofer justifies the decision of the jury. "Internorm and LiSEC have been enjoying an intensive cooperative partnership already for more than 30 years. In the realization and commissioning phase of our tempering furnace, LiSEC has once again proven that the seemingly impossible has yet become possible", adds the co-owner of Internorm, Christian Klinger.

With the commissioning of an own plant for the production of tempered safety glass at the Traun site, Internorm has further enhanced its manufacturing expertise and at the same time the independence from suppliers in 2015. "Apart from the profile extrusion and the production of insulating glass, the production of tempered safety glass is now almost completely also in our hands. With our own tempering plant, we are in the perfect position to make tempered safety glass the standard for our products and to provide for a still greater safety already in the basic

configuration”, says Klinger.

Klaus Preyler, sales director and responsible for Internorm: "Internorm has set the bar very high for suppliers. LiSEC has gladly accepted the challenge and is therefore able to improve further together with Internorm.

This award proves that we are doing this successfully".

Caption: Awarding of the Internorm Supplier Award in the category investment goods.

From the left to the right: Thomas Vondrak, Johann Habring, Helmut Freynhofer (Internorm), Peter Rattinger, Anita Gutjahr, Klaus Preyler, Werner Mihatsch, Leopold Dammelhart, Klaus Siedl (LiSEC), Anette Klinger (Internorm)

Copyright: Internorm

PPG gets out of automotive UNITED STATES PPG Industries Inc. is getting out of the automotive glass business with the sale of Pittsburgh Glass Works to auto parts manufacturer LKQ Corp., a deal that underscores PPG's move away from its historical roots as it focuses squarely on its paint business.

The Downtown-based company and private equity firm Kohlberg & Co. LLC said Monday they were selling Pittsburgh Glass Works to Chicago-based LKQ in an estimated $635 million deal.

PPG owns a 40 percent stake in the North Shore-based operation, which makes windshields, sidelights and roof panels for cars. “(The) sale concludes PPG's longstanding involvement in the automotive glass industry, as we continue to sharpen our focus on building a growing market position in paint, coatings and specialty materials,” CEO Michael McGarry said in a statement.

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Pittsburgh Glass Works has plants in Western Pennsylvania — East Deer and Meadville — that are among its dozen U.S. factories. It also has plants in Canada, Mexico, Europe and Asia.

Glass products were once a pillar of sales for PPG, which was founded in 1883 as Pittsburgh Plate Glass. They now account for about 7 percent of the overall business. PPG continues to operate its flat glass and fiberglass business.

During the past 15 years, PPG has become a global leader in coatings and has made more than 65 acquisitions to expand in that industry. It sold its automotive glass business to Pittsburgh Glass Works, a subsidiary controlled by Kohlberg & Co., in 2008 and took a minority stake in the company.

The acquisition gives LKQ a major manufacturer and distributor of automotive glass products as well as a complementary business

to its array of replacement parts for cars and trucks. PGW has 119 distribution branches and more than 7,000 retail glass shops across North America.

LKQ Chief Executive Robert Wagman declined to say whether any of the glass company's 4,500 employees would be laid off, though he complimented the company's lean operations and said he expects executives to stay on board.

“We do not anticipate any management turnover,” Wagman told analysts.

Revenues for the glass company increased to $1.07 billion in the 12 months that ended October 2015, from $848 million in 2012. Wagman expects demand for automotive glass to keep growing as Americans drive more miles and hang onto their cars longer.

Jim Wiggins, CEO of Pittsburgh Glass Works, struck an optimistic

tone about the company's future.

“PGW transformed itself into a strong global competitor of automotive glass and enjoyed tremendous market and financial success under the stewardship of Kohlberg and PPG,” Wiggins said in a statement. “We are excited to become part of the LKQ family and expect that the company will continue on its growth and success trajectory under LKQ.” The deal is expected to close in the second quarter.

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Laura Biason: Director, GIMAV and Vitrum In the magazine this issue, Asian Glass gets the chance to talk exclusively with Laura Biason, the new Director of Italian glass machinery association, GIMAV and the country’s high profile glass technology show, Vitrum.

AG: Welcome to your new position; can you give some background of your own involvement with the glass industry in the past?

LAURA BIASON: Thank you very much. I got to know the glass industry better a few years ago when I joined Gimav, working alongside the previous director in providing daily services to member companies. I have dedicated all of my working career to companies, working mainly for businessmen’s associations and will be bringing all this experience with me to this industrial sector. The glass industry is an important branch of Italian production and its areas of excellence are famous worldwide. We are an extraordinary segment of Italian industry and are a combination of creativity, high technology and innovation.

AG: When you assume a role such as this, do you feel the most important function is continuity, or are you seeking to put your own personality into the position and take things in the direction you think most appropriate?

LB: I think that the two things go together and that you must strike a balance between the two. It is definitely important to continue with what has been done until now, by carrying on with all the activities that made the association a leading reference. However it is impossible not to put your own experience into your daily work, but always following the guidelines set by Vitrum President Dino Zandonella Necca and Gimav President Cinzia Schiatti.

AG: What do you consider are the biggest challenges you have inherited, and how are you going to set about addressing them?

LB: One of our first goals is establish closer synergies with the various technical-scientific, manufacturing and cultural institutions working in the glass industry. This is definitely a great challenge and I will focus all my efforts on this. We are also working to further expand the range of services the association offers to its members, both in promoting Italian production worldwide as well as in supporting Italian companies on the domestic market. Moreover, all the team is working to make Vitrum 2017 even more international, and a must-attend appointment not only for the end users of the products showcased by exhibitors, but also for all trade people in the glass industry.

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AG: How do you view consolidation within the equipment industry: do you think that less, but stronger, companies is a better route forward, or would you rather see the emergence of a new breed of technical entrepreneurs?

LB: This is what built the machinery sector before – can it happen again? It is difficult to foresee how the market will develop, but in general there can be all kinds of companies, each with its own strengths.

There’s room for everybody, from the small, specialised companies working in the highly qualified tailor-made area to the large multinationals with a huge production capacity, because of the very fact that the special features of each cater to the most wide-ranging needs of potential customers.

AG: Geographically, where do you consider Italian machinery companies need to be more assertive, and what can you do to help them?

LB: Our companies work worldwide, because Italian production in this sector is appreciated and in demand everywhere, such as in Asia and the Middle East, which are particularly important for the Italian glass industry. Gimav, which works in various areas, helps companies to spot market trends, by providing all the information they need and taking the necessary measures to support companies in cooperation with the authorities in those countries.

AG: Asia and the Middle East – because of its sheer size – will always be a major target market for technology, but how do you view Italy’s position in that region, and how can you encourage companies to actively “take on” the growth of Chinese technology exports?

LB: Member companies have always been very active in these areas, where the excellence of Italian machinery is recognized. The latest figures in our possession show that in 2014, Asia remained the second export market for flat glass after the EU countries; hollow glass has also started to pick up speed again in China, the Middle East and Saudi Arabia. It is the very per formance of Italian products – which can be highly customized, with their high technology and quality, ongoing customer service and competitive costs throughout the life cycle of a machine – that makes them beat the competition.

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ELECTROGLASS INTELLIGENT DESIGN FOR IMPROVED AG: GIMAV remains arguably the most important technical association still existing in the industry: why has it managed to survive so long, and what do you think the shape of that organization needs to be going forward in order to ensure its continued relevance and survival?

LB: Gimav has used the strategy of bringing together the finest Italian glass companies under one roof, by grouping about 70 companies.

Over the years, it has worked to increase the potential of each company based on the well-known principle that there is strength in numbers. In the tough battle of international competition, each member company knows it can count on the help and support that can only be ensured by an efficient organization which is active on multiple markets.

The single businessman is not left to face the difficulties of a highly competitive world on his own, but is supported by an association that safeguards his interests, promotes his value and helps him to solve all the problems that that inevitably arise in an international context made of many different players. The future of this association also includes improving support and assistance in this area.

AG: How critical is the glass technology sector to the Italian economy moving forward, and how to propose to keep presenting the case for continued support and investment to the relevant trade and government departments?

LB: As a whole, Italy plays a leading role in the industrial machinery sector in a great many markets, with a very high export drive that stands at more than 70%. This is all the more true in the area of machinery, accessories and special products for glass processing where, because of its high-level innovation and search for innovation, Italian technology holds a leadership that is difficult to displace. This is definitely a strength for the Italian economy.

As such, Italian economic policy should give a good amount of attention to this sector.

AG: What will be the program for the next 18 months in terms of supporting the industry in the field? Most of us only see GIMAV at exhibitions, so perhaps you can give some insight as to what happens behind the scenes?

LB: The 2016 promotional campaign sees Gimav coordinating the attendance of its member companies at the main international events for the glass industry, among which China Glass, Mir Stekla, Glass South America, Glasstec and GlassBuild America. We are also looking into new stops in our 2017 campaign to further promote Italian production in Asia and the Middle East. However, it should be pointed out that all the work being done by the associations is very multi-faceted and also includes all the activities that are necessary to support the day-to-day operations of its companies. We collect, analyze and circulate information about the various markets, probe into the most interesting topics for members by holding seminars and conferences, provide updates on standards in the various fields where member companies work, and promote the Italian glass industry in Italy and abroad at exhibitions and with the participation of the press and industry stakeholders.

AG: Finally, if you could wish for one development for the glass industry in the next 12-18 months...what would it be?

LB: I hope that the Italian glass industry can latch onto the global economic recovery as quickly as possible. And I am convinced that we are going in the right direction to get the best results.

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News

Batch Price hikes on the cards China // Soda Ash As AG goes to press, China’s soda ash producers are mulling hiking their offers further for April-loading cargoes, as supply remained tight due to a prolonged outage at Shandong Hiahua’s 3m tonne/year capacity in the country, industry sources have said.

Production at one of the two shut plants of the company in Weifang, Shandong province was restarted on 27 February, almost a full month after the shutdown.

“We need to raise prices further next month due to the supply imbalance,” a major producer said.

Chinese soda ash producers have raised prices in the domestic market by a total of yuan (CNY) 200/tonne this month for dense grade soda ash.

On 24 February, dense grade soda ash prices across China remained firm at CNY1,6001,700/tonne DEL (delivered), while light grade soda ash stood at up to CNY1,600/tonne DEL, according to ICIS data.

Offers for the dense grade were expected to be raised by CNY100/ tonne in March, while those for light grade soda ash offers may be hiked by CNY80/tonne, a major producer said.

In the export market, not much deals were concluded as major producers were focusing on selling to the domestic market. Offers were nudged up to $230-235/ tonne FOB (free on board) China for dense grade soda ash and to $220/tonne FOB China for light grade material amid a lack of spot cargoes available for exports next month.

On 24 February, China’s export prices for the dense grade material were assessed at $220-225/ tonne FOB China, up $15/tonne week on week, while light grade soda ash was up $5/tonne over the same period at $210-215/ tonne FOB China, according to ICIS data.

A number of buyers in Asia are still waiting to receive offers from China, more than a week after the country’s markets were shut for the Lunar New Year holiday on 7-13 February.

Other buyers, meanwhile, indicated that they had adequate stocks for March and even for

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TEYO looks at soda ash plant Belarus // Soda Ash

April.

Most buyers raised concerns over the magnitude of the price increase over a short span of time.

“We are talking to the market on the price increases so our price ideas are pending our customers' maximum acceptable ideas,” a southeast Asia-based stockist said.

A southeast Asian end-user said: “I foresee prices going up because of the soda ash plant problem in China.”

Some buyers opted to stay on the sidelines until price movements stabilise.

Buyers may also have to turn to the light grade soda ash to meet the supply shortfall, a China-based soda ash producer said.

Meanwhile, the traders that typically buy cargoes from China for the European market are trying to look for other sources of supply, with not much export cargoes coming out of the northeast Asian country.

Traders are negotiating for a favourable freight rates after the spike in China soda ash prices.

They require China dense grade cargoes to be priced below $200/ tonne FOB China to make them viable for sale into Europe.

Delegates seek EU tariff reprieve United States // Soda Ash To help bolster American soda ash exports, the Wyoming delegation has sent a letter with other Senate and House members emphasizing the importance of eliminating a European Union (EU) tariff on soda ash under a transatlantic trade agreement currently under negotiation.

“This tariff barrier reduces the competitiveness of U.S. soda ash and also harms European industrial consumers, especially Europe’s sizable glass industry, which stands to benefit from better access to competitively-priced, high-quality U.S. soda ash,” the letter said.

The Turkish company TEYO plans to build a plant to produce soda ash in Gomel Oblast.

The project was discussed at a meeting between Belarus' Deputy Prime Minister Anatoly Kalinin, Gomel Oblast Governor Vladimir Dvornik and executives of the Turkish company, BelTA learned from the press service of the Belarusian Government. The meeting took place during Anatoly Kalinin's working visit to Gomel Oblast.

An agreement was reached to start the construction of a soda ash plant with the capacity of 1 million tonnes per year. The construction site will be selected and a business plan will be developed in the coming months. Anatoly Kalinin visited a number of industrial enterprises affiliated with the Transport Ministry, the Architecture and Construction Minsitry and the Housing and Utilities Ministry to get familiar with the processing of polymer wastes and production of related goods. A meeting at the Ekoplastservis unit of Spetskommuntrans Company focused on the participation

of the Belarusian government in such environmental program as collection, separation and storage of waste plastics, their use as secondary raw materials, and the production of finished goods. When visiting Gomel Rail Carriage Plant the Deputy Prime Minister familiarized with the repair of carriages and wagons for special purposes, production of new passenger cars in collaboration with Kryukov Railcar Plant (Ukraine), and repair of wheelsets and production of spare parts.

Anatoly Kalinin criticized the enterprise for failing to pay due attention to the improvement of comfort conditions for passengers and cost reduction when modernizing passenger railcars. When visiting the Gomel building-construction plant and OAO Gomelglass Anatoly Kalinin praised the cost reduction measures adopted by the Architecture and Construction Ministry and the regional authorities. He also lauded the project to upgrade the industrial processing of glass which final stage will be completed in the first half 2016.

ANSAC to raise prices World // Soda Ash ANSAC – the sales, marketing and logistics arm for three US soda ash producers – has announced that it has increased soda ash prices by $25-30/tonne, effective 1 April, for customers with quar terly contract pricing, as contracts allow, a source at ANSAC said on Monday.

The majority of ANSAC's quar terly contract pricing is in Asia.

Soda ash prices in Asia have jumped higher in recent weeks following the shutdown of China's largest soda ash plant. On 1 Februar y, Shandong Haihua's shut down its 3m tonne/year soda ash plant at Weifang, Shandong province, due to leakage issues.

The producer is operating one of the two plants at the facility at par tial capacity at the moment, but the larger, 1.8m tonne/year plant is expected to remain shut down for another six months. As a result, China's domestic and expor t prices have climbed due to the supply shor tage.

ANSAC, headquar tered in Westpor t, Connecticut, is the international marketing arm for three US soda manufacturers: Tronox Alkali, Ciner Resources and Tata Chemicals. ANSAC will ship approximately 5m tonnes of soda ash around the world in 2016, a company source said.

Other US soda producers include Solvay Chemicals and Searles Valley Minerals.

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News Anaylsis

News

34

China: currency woes pile-up T

he yuan’s swings are becoming a headache for the Chinese companies that should have been the biggest beneficiaries of last year’s devaluation.

In rare overt comments, exporters including Midea Group Co. and TCL Corp. are expressing apprehension about the nation’s exchange-rate policy. Two said the increased volatility has made it difficult to manage costs because customers are choosing to place only short-term orders, while a third said the yuan was allowed to strengthen far too much in the past few years.

“Overseas clients are taking into account losses that can be caused by exchangerate swings and are placing shorter-term orders with smaller volumes, which creates difficulty for our operations,” said Yuan Liqun, vice-president at Midea, China’s biggest maker of household appliances by market share. “The fluctuations last year were relatively significant. Companies can accept a market-based yuan that moves within a reasonable range.”

Exports slumped 25 percent in February from a year earlier and a gauge of overseas orders contracted for the 17th month in a row, while the currency’s volatility held near the highest levels since August’s shock devaluation. This illustrates the challenge facing Premier Li Keqiang as he balances the need to nudge the exchange rate lower to help an economy growing at the slowest pace in 25 years, while trying to avoid a run that would create financial instability.

The currency, which has plunged 4.4 percent since last year’s devaluation, climbed in September and October, and dropped in the following three months before rebounding in February. It has strengthened 0.9 percent in March so far, almost wiping out this year’s losses. The wild swings contributed to an estimated $1 trillion in capital outflows last year.

China’s capital outflows have eased significantly as domestic and overseas environment improved, the State Administration of Foreign Exchange said in an statement on Wednesday. Chinese banks sold a net 228.5 billion yuan ($35.2 billion) of foreign exchange for clients in February,

asianglass AG 16-2

the least since October, indicating lower demand for dollars.

Reduced capital outflow pressures decrease the likelihood of a large one-time yuan devaluation, but gradual and managed depreciation is likely, Goldman Sachs Group Inc. economists led by MK Tang wrote in a note Wednesday.

The yuan, which Royal Bank of Canada says is currently overvalued, will face renewed selling pressure once the Federal Reserve decides to raise borrowing costs again. The median forecast in a Bloomberg survey of economists is for a drop of 3.8 percent by the end of the year. Its decline against the dollar in 2015 -- the most in 21 years -- masked a sixth straight annual gain against the exchange rates of China’s main trading partners, according to a Bank for International Settlements index.

This shows that there is more room for depreciation, according to Fuyao Glass Industry Group Co., which makes automobile windows and whose clients include BMW AG and Volkswagen AG. “The yuan is strong, so Chinese companies can’t go abroad and most exporters are making losses,” Cho Tak Wong, chairman of Fuqing, Fujian-based Fuyao, said in an interview over the weekend. “China should allow the yuan to weaken. If the currency doesn’t depreciate, exports will be negatively influenced and export-focused firms will suffer.”

The volatility’s impact has spread far beyond the export sector, with companies across the board rushing to close dollar loans before repayments become more expensive. Local firms have redeemed $1.73 billion of overseas notes before maturity so far in 2016, up from $26 million a year earlier, according to data compiled by Bloomberg. Shanghai-based China Eastern Airlines Corp. said on Jan. 4 that it had repaid $1 billion in dollar-denominated debt to reduce its vulnerability to exchange-rate fluctuations.

Huizhou-based electronics maker TCL said it liquidated all of its short-term dollar borrowings debts after the August devaluation, while Midea’s Yuan said her company has been reducing its foreigncurrency debt for the past two years.

TCL said it doesn’t look to profit from speculative trades using derivatives such as yuan forwards for fear of betting in the wrong direction.

Clients are placing more short-term orders on concern that the yuan will weaken, said Li Dongsheng, TCL’s chairman and CEO. This compares with a one-year buffer when the currency is forecast to strengthen, he added.

“This adds pressure to our management of costs and to our supply chain planning. I hope the yuan can stabilize soon,” he said.

“It’s not likely that the yuan will weaken significantly this year, but it’s possible that the currency will be volatile in the short run and depreciate as a trend.”

Taiwan to assist?

Perhaps as a sign of the increasing pressure being felt on the mainland, the involvement and support of the Taiwanese economy has never been more important.

Industrial heavyweights there have urged the incoming government to maintain cross-strait rapprochement and facilitate a review of the service trade agreement with China to help boost the competitiveness of Taiwanese exports.

“All eyes will be on president-elect Tsai Ing-wen during her inauguration speech on May 20, and she needs political prowess and delicacy when setting the tone for her leadership in the next four years without estranging Beijing,” Chinese National Association of Industry and Commerce chairman Lin Por-fong said.

Lin, also chairman of Taiwan Glass Industry Corp said at a business gathering in Taipei that extending the “status quo,” as Tsai has said at public engagements, is both vague and inadequate.

Cross-strait harmony is crucial to Taiwan’s economy as many firms have moved operations to China, the destination for 40 percent of outbound shipments, Lin said.

Trade terms means profits or losses for contract manufacturers, especially those with thin profit margins of between 3 percent and 5 percent, that cannot remain competitive if rivals enjoy more favorable tariff rates, Lin said.

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UK Leading Warm Edge Spacer Manufacturer attends China Glass 2016

Thermoseal Group is to showcase its highest performance Thermobar and Thermoflex warm edge spacer systems on stand W1-302 at the China Glass Exhibition hosted at the Shanghai New International Expo Centre from 11-14 April 2016.

Thermoseal Group is the UK’s leading manufacturer of highest performance warm edge spacer systems (rigid tube and flexible) and supplier of over 1,500 insulated glass (IG) sealed unit components. Its spacer systems are the result of over 35 years of dedication to IG. The Group has made a large private investment into manufacturing and development of its own manufacturing site and dedicated product innovation and component testing centre.

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All products supplied by Thermoseal Group are tested by the Group’s innovation centre which houses a wide range of equipment dedicated to testing the tolerance and overall performance of its products. The Group also has its own EN1279 test centre to make and test its own IG units to European standards and beyond. This ensures an understanding of how each component performs within

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the lifetime of the unit.

For more information, watch the Group’s latest video at: https://youtu. beFZaycQNmsdg Sales Director, Mark Hickox tells us: “We look forward to flying the UK flag at the China Glass exhibition. This will be the first time that we have showcased our Thermobar and Thermoflex warm edge products to the Asian and Australasian market and we look forward to seeing the response to our IG components.

“We have invested millions into developing our production facilities and changing the infrastructure of Thermoseal Group’s business so that we can manufacture and store large volumes of product and then export to help meet the demands of the international marketplace.

“Our expertise in the IG industry and IG products now puts our warm edge offering second-to-none. We can deliver highest quality products which offer best performance and we supply these with our awardwinning service. All of our warm edge spacers are extruded in-house so that we can control the quality of the product from initial mixture, through the manufacturing processes, then right through to delivery.

We batch-test all of our products.”

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For further press information or photography please contact Samantha Hill on +44 (0)121 331 3976 or sam.hill@thermosealgroup.com and quote reference number 127.

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ANALYSIS: Iran

Open for business

glass in Iran looks set for lift-off AG looks at how the opening of the Iranian economy could provide a welter of opportunities for suppliers, consumers and technology companies alike.

S

aturday 16th January 2016 marked an historic day for the Iranian industries and international investors alike. The International Atomic Energy Agency (IAEA) verified that Iran had met its obligations under the Joint Comprehensive Plan of Action (JCPOA) leading to “Implementation Day” and triggering the easing of many of the long standing sanctions imposed against Iran by the US, EU and UN. With the lifting of sanctions, Iran can now participate in global trade. Iran is finally free of crippling sanctions, although a few remain but largely it is open for business. After a decade of harsh international sanctions substantial investment is required across all sectors, presenting numerous opportunities in both the short and long term for Iranian glass industry in all the sub-segments.

Following signing up of 17 billion Euros deal between Iranian and Itallian companies in third week of January, Iranian President Hassan Rouhani’s statement “the country’s market offers Italian and European investors the opportunity to establish themselves in the entire region,” sums up the exuberance of Iranian industry in general. Though, these contracts were not related to glass industry, yet it signals that Iranian glass industry, which has witnessed and survived a very tough period of sanctions in last few years is about to enter one of its best periods.

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ANALYSIS: Iran

Foreign investment

German, Italian and US companies have indicated readiness to invest in Iran’s glass manufacturing industry, according to the head of the Iranian Glass and Crystal Producers Association, Ahmad Amir Ahmadi. They made their intentions known to Iranian officials during visits by European delegations to Tehran recently.

“Iran’s glass manufacturing industry, like other industries, has caught the eye of many foreigners for investment after the nuclear accord but we have to wait and see what happens in future. Possible tie-ups in glass industry could involve transfer of technology machinery and joint ventures,” according to Ahmadi.

Iran’s reserves of silica -- the main raw material for glass production – are among the world’s largest. With its huge raw material resources, ample domestic production of soda ash, which forms the backbone of raw material costs, cheap electricity and low labor costs, the country has the potential to become a leading world producer of glass.

While lifting of sanctions have presented a host of opportunities to existing and potential domestic glass producers on one hand, it has also offered foreign and multinational glass producers an opportunity to invest in this lucrative market. For foreign glass producers or investors in country’s glass industry, country’s Its social openness should make it easier to invest and work there than in many other places in Gulf.

According to rating agency Moody, Iranian economy is set to make a strong comeback after sanctions lift. Iran’s gross domestic product (GDP) will grow five percent in 2016-2017, thanks to a solid foundation built to cope with exclusion from the global financial system. International sanctions against Iran over its nuclear program appear to be benefiting its economy as decades of restrictions have made it adapt to low oil prices more quickly than other crude exporters. International sanctions meant that Iran had to adapt to the reality of lower oil revenues and implement structural reforms much earlier than other oil-exporters. Most other oil-dependent sovereigns are only just beginning to consider structural fiscal reform.

Iran’s economy is actually the second largest in the Middle East, valued at roughly $417 billion, the country is also more diversified than other regional oil exporters and that the removal of oil sanctions is expected to result in an investment inflow, leading to a steady demand of glass products in all the sub-segments.

A cautionary tale?

Whilst to a certain extent, Asian Glass shares the optimism sparked amongst the Iranian glass producers and processors by the lifting of sanctions, but few cautions are needed. The general perception is that the lifting of sanctions will lead to immediate improvements in the economy and rapid growth in glass consumption, but our view is more cautious in this regard. Of course there will be immediate and obvious benefits e.g. an increase in consumer confidence, increased spending on construction and investor sentiment, but the real and substantial microeconomic benefits will take much longer to play out. Glass consumption will not sky-rocket but will increase in gradual phases.

Furthermore, for domestic producers, which for a long period of time have never had to deal with significant international competition, it would be a slightly different pitch, at least for a couple of years. Though, Iranian producers enjoy a significant advantage in terms of factors of production, yet overcapacity in some of the neighboring markets will push glass products in Iran.

Flat glass

Flat glass production in Iran has achieved significant scale in last few years on the back of three float glass plants in last five years. Dominated by three float glass companies, Iranian flat glass sector comprises of nine flat glass lines with a cumulative production capacity of 4400 TPD of flat glass ( float, sheet and figured included).

Removal of sanctions will grant Iran access to about $150 billion in its

40

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IRAN’S GLASS MANUFACTURING INDUSTRY, LIKE OTHER INDUSTRIES, HAS CAUGHT THE EYE OF MANY FOREIGNERS FOR INVESTMENT frozen foreign assets, which will be spent on reviving the country’s aging infrastructure and stalled construction projects, which will give a much needed fillip to nation’s flat glass industry and producers.

Kaveh Glass Group is the largest flat glass producer in Iran. On the hindsight, it seems that company has been preparing itself for the removal of sanctions for a long time and had planned its investments towards expansion in a timely manner to coincide with the removal of sanctions. With its five flat glass lines ( four float and one sheet line) it has an installed capacity to produce 2560 TPD of flat and figured glass. The largest glass group of Iran consists of a host of companies, which are directly or indirectly engaged in glass industry. Besides flat glass, the company has a mirror production plant with an annual capacity of 4,000,000 sqm of mirrors. Group’s other companies also produces 500,000 tons per year of silica sand, dolomite and feldspar and 200,000 tons per year of soda ash to meet the raw material needs of glass producing companies of the group.

Saveh Jam, the first glass production company of the group, which become operational in 1990’s produces clear sheet ( 250 TPD) and figured glass ( 125 TPD) with an installed capacity of 375 TPD. This unit was followed by first float glass plant of the country, Iran Float Glass in 2000. Located at Kaveh industrial City, about 120 Km far from Tehran, Iran Float Glass has an installed capacity of 500 TPD. Kaveh’s third flat glass line, Shisheh Taban was established a couple of years later. Located at Kaveh Industrial City has an installed capacity of 265 TPD of flat and figured glass ( Flat 135 TPD and Figured 130 TPD).

Third Float Line Of Kaveh Glass Group by the name Kaveh Float Glass commenced operations in 2004. The 700 TPD line was the largest in Iran at the time of its installation and can produce float glass in regular and jumbo sizes for both architectural and automotive applications. The company installed an online coating machine at this facility in 2005 to produce reflective , solar control and low e glass. This line was followed by Asa Float Glass line, which commenced operations in 2009. 700 TPD line produces float glass and mirror in different colors. In 2010, a coated facility was installed to offer coated glass to Iranian and foreign customers.

Kavian Float Glass, the fifth float line of Kaveh Glass Industrial Group is currently under construction. Coming up near Mashhad, located in the NorthEastern part of the country, this plant will supply float glass to the North – Eastern part of Iran and neighboring Middle Eastern countries.The float line is scheduled to start production by the end of this year. Design and engineering phase has been completed and procurement of pre- processing machineries is underway. Besides, glass for architectural segment, the upcoming line is being

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ANALYSIS: Iran

designed to be capable of delivering maximum flexibility so that it can also produce automotive quality float glass.

In addition to domestic flat glass production, Kaveh Glass is setting up a float glass plant in Kazakhstan. The company signed an agreement with Investment Fund of Kazakhstan in mid 2014. Coming up with an investment of USD 284 million, Kaveh Glass has a 51 % share in the project, while Investment Fund of Kazakhstan has the rest 49 % share. Construction of the new plant has already started in the industrial zone of Kyzylorda. The float plant with an installed capacity of 197,000 tons per annum is scheduled to commence commercial operations in the third quarter of 2017. The plant will produce products that comply with the European quality standard. It will also produce tempered glass (3,700 tons per year), mirrors (3 million square meters per year), windows (7,700 tons per year) as well as energy-saving glass with magnetron sputtering (11 million square meters per year). The JV expects to sell about 70% of the production in Kazakhstani market and export the rest 30 % to other central Asian countries of Uzbekistan, Kyrgyzstan, Turkmenistan and Tajikistan.

Sahand Industrial Group, the second largest flat glass producer in the country commenced production of its second float glass plant in May 2015.

Inaugurated by Iranian President Hassan Rouhani in Northwestern Iran at Tabriz, Sahand Float Company in Tabriz has an installed capacity to produce 650 tons per day of float glass for architectural and automotive industries. With the newly installed float glass plant, Sahand Industrial Group has achieved an installed capacity of 1000 TPD of flat glass. Its other flat glass unit, Azar Glass has an installed capacity of 350 TPD of glass per day. Two other subsidiaries of the company are engaged in production of figured and value added glass.

Another group company, Sahand Silica Tabriz mines and process silica sand needed for glass and other industries.

Sahand Group’s first float glass venture, Azar Glass industrial Company, which commenced production in 2005 has gained huge market for its products in European countries, Russia, Turkey, middle Asia, Iraq, and Afghanistan with products that conform to international standards.

Iran’s latest entrant in float glass production, Ardakan Glass was established in 2011. Located at Ardakan city of Yazd province, the company commenced commercial production of its float plant in early 2013. Inaugurated by the then President of Iran, Mahmoud Ahmadinejad, Ardakan Glass has an installed capacity of 220,000 tons of float glass per annum. Set up with an eye of the lucrative export markets, Ardakan Float Glass has many advantages over its competitors in terms of location. City of Ardakan is located at the junction and loading of four main railways of Iran ( Tehran, Isfahan, Mashhad and Bandar Abbas). The city also lies on the North- South and East- West transit road, making it at the crossroad of East, West, North and South. Currently, the company exports its products to Europe, Russia, Persian gulf countries, Pakistan and India.

Much like its two other counterparts, Ardakan Glass is also a highly

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Production and exports of flat glass 2014 Production of Flat Glass Exports of Flat Glass

2013

2012

2011

1.04 m t

886,350 t

864,180 t

745,125 t

224,125 t

113, 110 t

101,400 t

84,200 t

Major glass makers Company

Product Portfolio

Capacity

Saveh Jam

Sheet and Figured Glass Producer

375 TPD

Iran Float Glass

Float Glass

500 TPD

Shisheh Tabab

Flat and Figured Glass

265 TPD

Kaveh Float Glass

Float Glass

700 TPD

Asa Float Glass

Float Glass

700 TPD

Kavian Float Glass

Float Glass

Under Construction

Sahand Float Tabriz Company

Float Glass

650 TPD

Azar Glass Industrial Companu

Flat Glass

350 TPD

Sahand Jame Tabriz Company

Figured Glass

100 TPD

Ardakan Float Glass

Float Glass

220,000 TPA

backward integrated flat glass producer. The company owns silica, feldspar, limestone and dolomite mines and processes these materials in the vicinity of its float glass plant. AFGC’s silica mines are located at about 85 Km Southwest of its float plant at Naein district. The ore content of the mine is unconsolidated sand with sedimentary region that is geologically a part of Iran’s top Quartzite formation. AFGC claims “ The high quality of silica ore and extremely large amount of deposits makes these mines as one of the most reliable and valuable resource in production of float glass.”

Along with an anticipated increase in domestic consumption of flat glass, Iranian flat glass producers will be able to export flat glass, which hitherto was curtailed to a large extent due to payment issues in past.

Since, most of the glass producers were unable to invest in state of the art technology due to shortage of foreign exchange, exports of flat glass will enable these producers will enable them to invest in more up to date technology in coming days.

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ANALYSIS: Iran

Container focus

Container glass production and consumption in Iran

2010 2009 2014 2013 2012 2011 On volume basis, Iranian container glass industry is expected to be the biggest winner among the three Container Glass Production 284,000 287,000 282,000 302,000 313,000 304,000 sub-segments after lifting up of sanctions. Currently, Domestic Demand 247,000 245,000 248,000 256,000 254,000 247,000 catered by seven mid scale container glass producers, 57,000 54,0000 47,000 49,000 53,000 55,000 Iranian container glass industry had to face one of Exports its most severe crises in last three years. Plummeting Major container glass makers domestic demand due to countryâ&#x20AC;&#x2122;s economic situation and declining exports due to international sanctions led most of the container glass producers Company Location Installed Capacity to operate at very low capacity utilization levels. While, fuel price hikes Hamadan Glass Qazvin 300 TPD and demand for light weight glass container ( which necessitated capital Shishe Va Gaz ( Shoga) Tehran 300 TPD expenditure) led to increase in overall production cost on the one hand, low demand and threat of alternative packaging materials put pressures on the Razi Glass Group Qazvin 170 TPD prices of container glass on the other.

Mofid Pharmaceutical Glass Tehran 290 TPD Lifting of sanctions is expected to enthuse the domestic container Mina Glass Tehran 160 TPD glass industry and improve the capacity utilization by several notches in Crystal Iran Abhar ( Qazvin) 90 TPD the short term. In the medium and long term, capacity expansions, new investments by domestic and multinational container glass producers is Daroo Shishe ( Sina Glass) Tehran 250 TPD expected to increase the total production to a large extent.

Largest gains in container glass segment are expected to come from the Major Tableware glass companies in Iran entry of multinational food and beverage companies, which are expected to Company Location Installed Capacity enter the Iranian market in this and next year. Current product portfolio of Jahan Crystal Company Qom Highway Crystal Ware Iranian container glass producers is concentrated on pharmaceutical glass production to a large extent. However, with the entry of multinational Shoga Tehran 90 TPD food and beverage producers, even existing domestic producers will have Spideh Jam Toosh Mashaad 6000 TPA to match their offerings in this sub-segment by improving the packaging, Bakhtiari Glass Industry Tehran 4000 TPA which will result in higher consumption of glass containers, leading to a much needed growth in this neglected sub-sector of glass industry in Crystal Iran Company Tehran 6000 TPA coming years.

Lorestan Glass Aligudarz, Lorestan 30 TPD (Ovenware) Asian Glass anticipates entering of foreign container glass producers Gamin Glass Tehran 45 TPD in Iran through JV and augmentation of installed capacity by existing Mahfam Jam Tehran 70 TPD domestic container glass producers in the short and medium term.

More importantly, Iranian producers are likely to spend in acquiring Norit Azeh Glass Company Shamsabad 180 TPD state of the art technology to produce light weight glass containers to meet Kaveh Glass Yazd Industrial Area 52000 TPA the challenges of improved product offerings of container glass producers from neighboring countries. basis, Iran has the highest production and usage in the region.

In addition to nine companies mentioned in the table there are about Tableware glass a dozen more, who are operating at a smaller scale. Most of the older Despite the sanctions and a limited demand of table ware glass in the and established companies have undergone capacity and product portfolio country, Iran has been successful in establishing the most vibrant tableware expansion in the last decade. However, sluggish demand in domestic market glass producing industry in the region. In fact, if we consider on a per capita in last few years has forced most of the producers to operate at low capacity utilization rates or look for export routes.

Noritazeh

Established in 1997 with a capacity of 30 TPD of tableware glass, Noritazeh is one of the fastest growing glass producers in the country. The company, which has a licensing agreement with Japanese company, SOGA Glass to produce Japanese companyâ&#x20AC;&#x2122;s designs in Iran has increased its output by several times.

In 2004, the company commenced production with a 150 Ton furnace, the largest of its kind. The company also became the first manufacturer in Iran to automatically produce jugs and spin dinnerware.

With an eye on international business, Noritazeh acquired 5 million sq.ft. of land in the prime industrial city of Shamsabad, 40 km from the capital city of Tehran and in close vicinity of the new international airport. The company also established a new decoration and packaging units to further enhance its competitive advantage.

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asianglass AG 16-2

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NEW DEVELOPMENTS IN OCMI VIAL PROCESSING TECHNOLOGY OCMI aims to improve its presence in the market of vial production lines during year 2016 while confirming the very good perspectives in the market of ampoule machines.

Starting from the long experience in ampoule manufacturing lines manufactured in its Italian and French factories, OCMI can offer a reliable and efficient alternative to the index technology for vial forming.

The 20 station vial forming machine FLA20/S represents an excellent solution for medium/high production levels.

Main advantage of this solution is the speed but also the flexibility in job change and of course the maintaining of high quality standards despite of the reduction of glass processing times.

The feeding of glass tubes can be realized with rotating turret loaders or with the automatic loader Roboglass: this second equipment allows reducing the risks of environmental contamination of the tube thanks to its high storage capacity.

In order to get advantages in speed and forming accuracy, OCMI is proposing another version of 20 station vial forming machine: the model FLA20/E is equipped with an electronically controlled carriage perfectly synchronized with the rotation of the main machine handling two finishing heads with two rollers and one plunger each. This machine, with the same structure of FLA20/S model, allows to process and to finish two vial mouths in the same time with consequent output increase.

All the existing vial forming machines installed are suitable to be equipped with camera control system OPTIVIAL for the dimensional control of the container before unloading for hot-end area.

Inspection system and automatic rejection of defective vials are becoming more and more important to make the operatorâ&#x20AC;&#x2122;s job easier during the after-forming operations.

Both models FLA20/S and FLA20/E can be connected with afterforming lines LF520 by Moderne Mecanique.

The passage from hot-forming to processing line can be traditional (with descending through lower chucks) or by unloading vacuum device. This second system can reduce the risks of contaminations and cracks due to the falling of vials into the standard unloading tube.

The After-Forming line LF520 follows the same simple structure of ampoule processing lines by Moderne Mecanique with the possibility to install up to 4 gauging stations for dimensional control and printing device as well.

The line LF520 has been recently upgraded with last generation electronic components for the control of synchronization with forming machine and managing of after-forming operations.

The packing operation can be made with traditional pneumatic vial pushing device at the end of the line or by an automatic packing

Camera Control System OPTIVIAL for FLA20 machine

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asianglass AG 16-2

machine already prepared to be connected with LF520 line.

The Automatic Packing machine PM-V, available with 4 or 5 box filling stations placed on rotating table, solves the problems of friction and scratches that are typically due to the traditional packing operation. There is no contact between vials thanks to the picking from line chain through vacuum cups so the risk of scratches or breakages occurring during packing is minimized.

The number of vials per each row and the number of rows can be set from the control panel according to the dimensions of the box.

Any technical issue affecting the line operation can be managed from OCMI office thanks to the remote assistance provided through Internet network.

Continuous rotation technology for forming machines proposed

by OCMI has been chosen by several vial manufacturers particularly in Europe, Latin America and Middle East.

OCMI strongly believes in the vials forming technology of FLA20/S and FLA20/E machines and the feedback from the market, particularly from Middle and Far East is supporting this orientation.

On the other side OCMI is working to meet the expectations of factories that are more oriented to indexing rotation machines for vial forming. 16 stations vial forming machine TAM16, initially developed

by OCMI India only for local market, is being upgraded in order to meet the European quality standards and overcome the limits of Indian market.

In these weeks OCMI is launching the new version of indexed vial forming machine, called TAM114 with several innovations in main mechanical, electronic and pneumatic components and new devices improving the tube processing in order to get the best final product also from hydrolytic resistance point of view.

Mechanical improvements has been applied in critical operations like glass tube bursting and cutting where smokes must be removed as much as possible from glass surface. This is why movable internal and external cutting burners and movable bursting burner as well were developed in order to minimize the flame action on glass and keep alkalinity inside acceptable limits.

Among other new features, TAM-114 machine has been also adapted for the possible connection with automatic loader ROBOGLASS and for the installation of last generation camera inspection system OPTIVIAL for dimensional control, like all other OCMI European forming machines.

Purposely for indexing machine TAM114 a new line was designed and is now under development with important innovations particularly regarding vials transportation inside annealing lehr.

Standard configuration of this new line model LF516/114 is composed by two forming machines to get a maximum total output of about 3.000 pcs/hour.

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ANALYSIS: Tableware

Serving up options tableware sector looks poised for expansion

AG assesses the growth of the continent’s glass tableware manufacturers and discusses their global prospects…

G

lass tableware brands are no more tied to luxury in the emerging economies of Asia as the middle class consumers are rising with higher household income every year, pushing ahad their lifestyle to the focal point of investors who manufacture tabletop products for home and hospitality industry. Not all Asian nations are yet to be viable enough to have world class glass tableware plants for domestic consumers, but some of the countries with better consumer base have come up with products traded worldwide. Many Asian companies now have highly potential brands to compete with the rest of the world. Besides world famous Japanese brands, the newly emerged brands, like South Korea’s Glasslock, UAE’s RAK, KIM (PT Kwarsa Indah Murni) of Indonesia and Ocean of Thailand, travel across the world.

Who are the top 20 companies that dominate the home markets and play prominently in Asia? The message from the manufacturers and their consumer portfolios suggest that Asian brands are getting stronger steadily despite economic slowdown in many countries. La Opala of India and the Thai, UAE and Chinese rivals of opal glass brands experiencing increasing demand,

48

asianglass AG 16-2

in competition against the traditional high quality ranges imported from other regions, including European Union.

The region’s glass tablewares brands have markets at home and throughout the world, and sourced by chain stores and other major retailers. Many of the world major retailers, operating worldwide, use the Asian glass manufacturers as the contract manufacturers of their own brands. Yet, Asian brands’ rises are less mentioned globally, but they are growing tremendously with their OEM products sourced by the Western brand owners. What is more interesting is that the Asian manufacturers are beating the traditional market leaders in their home countries in Europe and North America with Asian homegrown innovative products, applying their own technologies. Asian handmade and mouth blown glass tablewares are now available in almost all major stores in the Western world.

However, the European and American brands still have some loyal customer families in Asia including Japan, Korea, and China, who have their own traditional and popular handmade glasswares for domestic consumers. Many small and medium enterprises (SMEs) in Asia have outstanding skills in making handmade tablewares, even in the Japanese factories where labour cost is higher than their counterparts in Europe. Compared to Japan, the Chinese and South East Asian cost of skilled labour is about a quarter.

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ANALYSIS: Tableware

Japanese SME glass tableware manufacturing company, SGHR Sugahara, said despite high production cost of their daily use items, the brand SGHR Sugahara has stayed in the markets. The company sells direct to the customers through a small network of their own shops. Famous crystal tablewares of Japan, produced with highest possible skill of craftsmanship are however less effected by the labour cost because of their premium prices. A pair of crystal tumblers or beer glasses, made by Kagami Crystal Co Ltd, are priced at minimum US$100-200.

Top class

In Asia, only Japan had top class professionals in industrial product designing till mid last century. The economic boom of the past few decades gave a much needed boost to the emergence of many industrial product designers in other neighbouring East Asian countries. Tremendous success were achieved in South Korea, China, and other South East Asian countries in the past few decades to have homegrown product designers that helped glass industry have innovations in tableware designing and develop answer to the Western dominant products.

Asian designed high quality soda lime, borosilicate and tempered products are now available in the markets. Handmade and mouth blown glasswares, as well as, toughened, opal and crystal products, are grabbing the market shares all over the world, specially, in West Europe and USA, since past several decades.

Only in the past and first 15 years, the current century has delivered many brands. Among them, an outstanding achievement was made in functional product innovation and market expansion by Glasslock brand, owned and developed by the South Korean company, Samkwang Glass Ind Co Ltd. The ten year old brand is exported to 85 countries. Its main ranges are in airtight kitchenwares, but its smaller, toughened, tableware ranges of plates, bowls, tumblers, mugs, cups and saucers have high demand in Europe too. The brand has a full fledged distribution centre in European Union.

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asianglass AG 16-2

In Asian domestic and export markets, a lot of product ranges of many Asian companies are now crowding. The items include, Japan’s leading glass tableware manufacturer Ishizuka Glass Co Ltd’s ADERIA brand in dinnerwares and drinkwares, Thailand’s Ocean Glass PCL owned brand Ocean in tablewares and drinkwares, and several Indonesian tablewares and drink wares from the leading brands, KIM, PT Mega Indah Glass Industry (MiGi Glass), KIG (Kedaung Industrial Group), and BBC (PT Culletprima Setia).

Also, among many other leading brand products, UAE’s RAK opal glass dinnerware sets, Thailand based Soojung Glass Co Ltd and Chinese manufacturer Guangdong Jiancheng High-Tech Glass Products Co Ltd’s opal dinnerwares , Shandong Huapeng Glass Co Ltd’s Huapeng goblets and other drink wares, Thai company Kong Thavorn Glassware Ind Co Ltd (KTG and BMG brands) and Indian brand Yera’s tablewares, drinkware and kitchenware ranges have significant domestic and export markets.

The manufacturers are leading players in the domestic and Asian regional markets. Glasslock brand’s owner-manufacturer, Samkwang Glass Ind Co, informed its brand is continuously making inroads into the European and North American markets with little opposition from the Western rivals. The profit earning company is expecting to raise the annual sales, mainly with Glasslock, this year to about US$275 million, from the last year’s US$260 million.

Sori Yanagi

Japanese celebrated industrial product designer Sori Yanagi (1915–2011) played a significant role in Japanese modern design developed after World War II. His designs still command the markets of tableware and kitchenware products of all major mediums, including, glass, ceramics and stainless steel. His ‘Sake’ glass is all time popular. His glass bowls are widely used high quality functional designed products. Japan’s one of the oldest and prestigious glass tableware making company, Toyo-Sasaki Glass Co Ltd, and

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ANALYSIS: Tableware

others have continued success in producing and marketing of Yanagi’s well designed and functional glass tablewares till today.

The stainless light yet durable kettle that Yanagi designed for rapid boiling is famous all over the world and was well received in Europe and North America. His bone china tableware series, specially, cups and saucers, produced by Japan’s elite bone china manufacturer, Nikko Ceramics Inc, are one of the world’s best. Sori Yanagi carried on the legacy of his father Soetsu Yanagi, a pioneer of the Japanese folk arts and crafts movements that stimulated the people’s feeling on heritage.

The glass tableware products designed by Yanagi and others, including present generation ones, have great positive impacts on Japanese brands’ success in the domestic and Asian markets, even in the West till now.

Yanagi’s designs, with unique and versatile functionality with refined and beautiful forms, are popular in Europe and USA that help better access of the Japanese products to the West since the middle of the last century. His successful synthesis combining Western industrial designs, with Japanese native artisanal traditions, made him famous in Japan and the outside world, where Japanese products gained wide access during industrial reconstructions and market reorganizations after the World War II. Armed with local famous and popular product designers, who research and experiment with their designs among the targeted segments of endusers, the Japanese large-scale tableware manufacturers like Ishizuka and Toyo-Sasaki have their natural advantages in the domestic markets.

Asian hotels and restaurants now use domestic products in almost all glass producing countries. Japanese glass plates and bowls and drinkwares are used with national pride. Leading brand owner, Ishizuka, sells its products with designs and craftsmanship keeping customers’ traditional feeling in combination with modernized essence in mind. Ishizuka offers products with Western shapes and colours with care and change the design with change of appeal before fading. Western brand owners also engage Japanese designers for their products before launching in Japan.

oriented production base for glass tablewares in Indonesia. Companies like PT The First National Glassware(FNG) survives with drinkswares only, without looking dinnerware markets. However, larger dinnerware manufacturers who produce dinnerwares and drinkwares, KIM, MiGi, KIG and BBC Glass have large export markets. Other important Asian markets, such as, Sri Lanka, Singapore, Philippines, Taiwan and Hong Kong are import dependent.

How the companies are going on?

Ishizuka Glass - ADERIA and Ishizuka brands

Nearly two hundred years ago, in 1819, one of Japan’s oldest industrial manufacturing company, Ishizuka Glass Co Ltd’s founder, Iwasaburo Ishizuka, started making glass products in the company’s current production facility, Dota, Kani City, Gifu Prefecture. The present public limited company was incorporated in 1941 and was listed with Tokyo and Nagoya stock exchanges.

In 1961, Ishizuka Glass Co built its ADERIA brand glassware plant in Iwakura to start glass tableware production and make a full-scale entry into glass tableware business, in addition to container glass manufacturing.

Aderia Glass (Zhuhai) Co Ltd was founded in 2009 as a production base of glass tableware in China, located at Gaolan Port Economic Zone, Zhuhai City, Guangdong Province.

In 2015, Ishizuka Glass Co Ltd acquired 100 percent ownership of Narumi Corporation, Japan’s famous and second largest ceramic tableware manufacturer and a global leader in bone china, as well as, porcelain.

Aderia’s sister plant Hokuyo Glass Co Ltd (handmade glass factory) is located at Tomita, Aomori-shi, in Aomori. The plant is designated for making “Tsugaru Vidro (Tsugaru Region glassware)” that is a traditional craft in Aomori, Japan. Tsugaru Vidro is very attractive glassware that is made by a unique use of local fine skills.

Toyo-Sasaki Glass

Toyo-Sasaki Glass Co Ltd (TSG) was created in 2002 following the merger between the Houseware Division of Toyo Glass and Sasaki Glass, two of Japan’s Among Asia’s leading glass tableware manufacturers, some of them have oldest and largest glassware manufacturing companies. The combination of their long-standing traditions, technologies, and extensive sales networks their secured exclusive markets at home, where they flourished without any have made Toyo-Sasaki Glass largest serious competitions. Some of them however had to create their markets glassware manufacturer in the Leading tableware suppliers: the top 20 from nearly nothing as the markets country. The same year, a brand new and domestic consumption pattern comprehensive production facility • Ishizuka Glass Co Ltd - ADERIA and Ishizuka brands, Japan. were complex because of various was completed in Yachiyo.

(Ishizuka has a China based plant, Aderia Glass (Zhuhai) Co Ltd) Located in Chiba prefecture traditional outlooks. In large Indian • Toyo-Sasaki Glass Co Ltd, Japan markets, the leading Indian brands, near Tokyo, the new site combined • Glasslock Samkwang Glass Ind Co Ltd, South Korea the latest automation equipment Yera and Borosil, are still engaged in • Kagami Crystal Co Ltd, Japan market exploration at home. from both companies and started • PT Kwarsa Indah Murni - KIM Glass, Indonesia In Vietnam’s domestic market, the production of hand-made and • Ocean Glass PCL, Thailand state owned manufacturer, Go Vap machine made products under a • PT Mega Indah Glass Industry (MiGi Glass), Indonesia Glass Joint Stock Co, enjoys certain single roof. In 1953, Toyo acquired • RAK – opal glass tablewares, UAE one of Japan’s oldest glass companies, advantages as the consumers are • KIG Glassware - Kedaung Industrial Group, Indonesia more product friendly, as the products Shimada Glass, founded in 1888, in • Yera tablewares - Glass Division of Shreno Ltd, India (formerly Alembic are also consumer friendly with the village of Kawasaki, Osaka. Using Glass Industries Ltd) acceptable design, quality and prices, the latest European glassblowing • PT Culletprima Setia - BBC Glass, Indonesia techniques. Shimada produced high compared to alien products, mostly • L a Opala RG Limited, India from bordering China. quality glass tablewares and lamps • Guangdong Jiancheng High-Tech Glass Products Co Ltd, China and the business grew steadily. On the Because of religious reason, • Borosil Glass Works Ltd, India in Muslim majority countries, other hand, Sasaki, originally founded • Thai Soojung Glass Co Ltd, Thailand Bangladesh, Pakistan and Malaysia, as glass shop by owner, Sojiro Sasaki, • Shandong Huapeng Glass Co Ltd, China the markets for glass tableware in 1902 at Kanda in Tokyo.

• PT The First National Glassware - FNG, Indonesia Sasaki’s business grew to a manufacturing is limited, but the • SGHR Sugahara, Japan huge non Muslim population and household glassware factory in • Kong Thavorn Glassware Ind Co Ltd – KTG and BMG, Thailand neighbouring markets for drinkwares 1917 and became well known • Go Vap Glass Joint Stock Co, Vietnam have helped develop a large export manufacturer by setting up a state

Different markets

52

asianglass AG 16-2

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ANALYSIS: Tableware

of the art ‘H-28’pressure blowing automated glassware production unit in 1947 for large scale production of high quality tumblers, with a daily output of 100,000 pieces. Eventually, in 67, the company started Japan’s first and most successful commercialized glass-rim toughened glassware brand. The brand is still popular. Sasaki Glass opened a new facility in Sumida, Tokyo, incorporating all technologies and craftsmanship of the previous operation and started production of a premium brand crystal glass. TSG now offers a wide assortment of hand-made and machine-made high quality glasswares, serving different pricing ranges, market segmentations and culinary traditions.

Kagami Crystal

Kagami Crystal Co Ltd, established ln 1934 by Kozo Kagami, and claimed to be the first crystal glass factory in Japan. Its highly decorated cut crystal tablewares are used by very high-end consumers as drinkwares. Since the startup, the company has developed advanced glassmaking skills and techniques, including hand glassblowing, manual cutting and engraving, to fashion its range of original and high-quality glass products.

The manufacturer supplies the crystal glassware to the Imperial household agency for official receptions, and also makes traditional Japanese Edo Kiriko craftworks. Its top-quality crystal glasswares made in Japan. The first Edo Kiriko, or Japanese traditional cut glass, originating to the Edo period, is believed to have been made by Kyubei Kagaya, a master glass craftsman in Odenma-cho, Edo or old Tokyo in the late Edo period. The Edo period in Japanese history runs from 1603 to 1868. Edo Kiriko was created and nurtured by the townsmen of Edo. Since then, for over 180 years, its excellent designs and finest techniques have been handed down to generations of Kiriko craftsmen. Edo Kiriko is highly reputed for the most exquisite and delicate cutting, and reportedly designated by the Japanese government as the traditional craftwork. It is very popular both in Japan and abroad as a gift symbolizing Japanese culture.

SGHR Sugahara

SGHR Sugahara Glassworks Inc was established in 1932, as Kazuma Sugahara, at what is now 4-chome, Kameido, Koto-ku, Tokyo. SGHR Sugahara has more than 4,000 different kinds of products of high quality glass tablewares.

It introduces more than 200 new products each year, as claimed. A research group for product development is established within Sugahara Glassworks, mainly comprising craftsmen, to step up the development of new products.

Glasslock Samkwang Glass

Glasslock Samkwang Glass Ind Co Ltd is a major tableware and kitchenware manufacturer and exporter. Its tableware products are of increasingly becoming popular in both domestic and export markets. The manufacturer is expanding markets in the emerging economies in Asia and other continents, and also giving preference to the ASEAN markets. The manufacturer said after four years of research and development ,Glasslock was developed.

The Glasslock products are functional, clean, transparent, strong and safe that resulted in quick acceptance worldwide. It is health and environment friendly, said the manufacturer.

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asianglass AG 16-2

Kwarsa Indah Murni - KIM Glass

PT Kwarsa Indah Murni owned KIM Glass is a popular brand, both at home in Indonesia and export markets. In the past two decades of its operations, Kwarsa Indah Murni has been established as one of the leading manufacturers of glass tablewares in Indonesia. It exports to more than 30 countries including USA, Mexico, Brazil, Japan and Turkey. It produces about 180 tons of quality glasswares daily. Its global customer portfolio includes Walmart and other chain store majors and superstore retailers to major wholesale distributors with supply chain in more than 30 countries worldwide.

Mega Indah Glass (MiGi Glass)

PT Mega Indah Glass Industry (MiGi Glass) is another Indonesia’s large glass tableware manufacturers and exporters. The company was established in 2004. Since then it sells household products worldwide. It manufactures different types of high-quality glass tablewares. Its tableware products include a variety of dinner sets, mugs, tumblers, plates, bowls, and many others.

KIG Glassware

KIG Glassware - Kedaung Industrial Group is an unconsolidated federation of over 30 companies. Since its inception in 1969 with the establishment of PT Kedaung Industrial Ltd, the KIG group has progressed at amazing speed over the years to become one of the dominant global leader in glassware manufacturing.

KIG is reputed for being able to supply a wide variety of quality tableware products with other glasswares at the most competitive price. The Group produces 1,200 tons of glass daily, equivalent to about 8 million pieces of various glasswares, including glass tablewares, per day. Its range of more than 2,500 items is aggresively marketed to a successful network of over 500 buyers in 120 countries worldwide. Since startup of the group, it has enjoyed unparalleled success in the domestic markets of Indonesia as well as in the world markets.

Culletprima Setia (BBC Glass)

Since the beginning about a quarter century ago, PT Culletprima Setia - BBC Glass is manufacturing table and kitchen glasswares under the brand name of BBC Glass with two plants, having production capacitiy of 70 and 110 tons per day, respectively. The products are exported to the countries of Asia, Australia-New Zealand, Europe, Africa and North and South Americas with stable demand, said the manufacturers

PT The First National Glassware - FNG

The First National Glassware (FNG), established in 1971 in Pulo Gadung Industrial Estate in eastern Jakarta, is one of the major glass tableware manufacturers in Indonesia with specia;osation in drinkwares. Its focus is on retail, food service and business to business markets. It is running with 3 furnaces with total installed capacity of 325 tons per day through 17 production lines. Its daily output is approximately 1 million pieces of glass drink tablewares. FNG exports to world market in addition to catering domestic market.

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ANALYSIS: Tableware

Ocean Glass

Ocean Glass PCL, with annual production capacity of 150 million pieces, is one of South East Asia’s leading glass tableware manufacturers for higher middle to high-end customers. Started operation from 1982 at its present site in Bangpoo Industrial Estate, near Bangkok city. It provides an extensive range of quality glasswares and services in all aspects of business, from retail and food service to decorated glassware products that include tumblers, plates, bowls, crystalline stemwares and barwares, sodalime stemwares, barwares, glass jars, tea cups, beer mugs, and other storage and serving items; covering practically every glassware for table use.

Thai Soojung Glass

Thai Soojung Glass Co Ltd is the leading Thai manufacturer of opal glass tablewares, established in In 1984. Located at Sampran, Nakornpatom, its glassware designs are renowned for its elegance, beauty, and quality. It offers a wide selection of table opal glassware items that can also be exclusively produced and customized to fit the design needs of home and everyday life style, as well as the hospitality industry..

Kong Thavorn Glassware (KTG and BMG)

Kong Thavorn Glassware Ind Co Ltd – KTG and BMG group, located at Klongmai, Sampran, Nakornprathom, produces handmade and mouth blown glasswares, plates, glasses, bowls, tumblers, carafes, colorful pitchers, and other household and decorative items. BMG operates under parent organization, KTG.

RAK opal tablewares

RAK is the manufacturer of high quality opal and clear glass tablewares in UAE. Its products have high resistance. RAK opal products’ quality, prices and ranges, backed by UAE’s lower prices of energy, have made it most competitive in the world market and helped it grow steadily. The product ranges it offers consist of dinner sets, plates, bowls, cups and saucers. Its clear drinking and beverage are available in wide variety of designs, suitable for use at home and the hospitality industry. RAK opalwares are exporting to 65 countries, said the company officials.

Yera tablewares

Yera tablewares - Glass Division of Shreno Ltd (formerly, Alembic Glass Industries Ltd, founded in 1907), located at Vadodara, Gujarat, is widely renowned for its vast product range of over 150 ready designs, encompassing dinner sets, pudding sets, lemon sets, juice sets, decal tumblers and gift sets.

Its range of transparent glassware includes tumblers, storage jars, jugs, glass bowls, casserole bowls, mugs for beer, juice, coffee, and tea, and ice cream cups. Its plates, including rice plates, are designed along the lines of classic, functional and traditional crystal glasswares. It has introduced a new brand, Soga Silica, to compliment its world class Yera Platina range. Yera brand was launched in 1958.

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L a Opala

L a Opala RG Limited is engaged in manufacturing opal glass and 24 percent lead crystalwares in India and marketing them both in India and overseas. Its brands comprise La Opala, Diva and Solitaire. Solitaire is directed at the highend segment, Diva caters to the mid-end, while the La Opala brand addresses the first-time requirements, the manufacturer said. The product lines include, plates, bowls, dinner sets, coffee mugs, tea sets, soup sets and dessert sets.

Its crystal ware portfolio comprises barwares, vases, bowls and stemwares. E established in 1987, the company, headquartered in Kolkata in West Bengal state, has manufacturing facilities in two locations, in Madhupur (opalware and crystalware) in Jharkhand, and Sitarganj (opalware) in Uttarakhand. All its furnaces’ total melting capacity is about 50 tons per day, with an annual production capacity of total 12,700 tonnes of opal and 1080 tonnes of lead crystal glassware.

Borosil Glass

Borosil Glass Works Ltd, based in Gujarat, has ranges of classy cups and saucers. The cups can be heated directly over the flame or popped into the microwave. The Classic and Picoletta tea sets are available along with a carafe, providing a complete solution to serve the customers’ needs.

Jiancheng High-Tech Glass

Guangdong Jiancheng High-Tech Glass Products Co Ltd manufactures opal glass tablewares and other heat-resistant glass tablewares. The company has developwd R&D for manufacturing high quality opal glass tablewares. It has a production capacity of manufacturing more than 120 million sets of high grader opal glass tablewares per year.

Shandong Huapeng Glass

Shandong Huapeng Glass Co Ltd is a leading enterprise in China for production of drinkwares. It is reportedly the largest machine-made glass goblet manufacturer in China. Its leading product range, Shidao, a high-grade crystal cups, lead-free crystal cups, and the machine-made fully fashioned glasses are sold all over the country and exported to more than 30 countries, including, South Korea, Japan, US, Canada and Russia. It is supplier to Metro, Wal-mart, Carrefour, Trust-mart and many other renowned supermarkets.

The sales volume and market share of machine-made fully fashioned glasses have ranked first in China for many years, claimed the company. Its lead-free crystal cups were selected for the state banquet by the Beijing Great Hall of the People and the Diaoyutai State Guesthouse, the manufacturing company said.

Go Vap Glass

Originally started as container glass factory in 1960, the Vietnamese state owned Go Vap Glass Joint Stock Co started production of color and clear glass tablewares, especially, drinkwares, in 1985. It exports to the world markets since 1993. It has nearly 2,000 designs, and in export markets, it serves mainly European Union and Scandinavian countries.

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ADVERTISER FEATURE

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Marrose Abrasives are currently looking for new distributors in Africa, Asia, Central & South America

Based in the United Kingdom, Marrose Abrasives was established in 1976, and from 1979 began to specialise in the manufacture of rubber bonded abrasive products for polishing the edge of glass; for furniture, architectural and white goods such as refrigerator shelves and cooker control panels.

With innovation in the design and manufacture of grinding machines Marrose Abrasives have added new abrasive wheel designs to its range of products for the glass processor, all produced to engineering tolerances, with consistent quality of product and performance.

Marrose Abrasives are committed to delivering the highest quality on all its product and services; and have focused on producing polishing wheels, for all flat glass grinding and polishing machines; as the grinding machines have become larger and more sophisticated, including CNC controls, so the range of polishing wheels produced by Marrose has increased.

Tony Day Marrose Abrasives Managing Director said “We have a vision for manufacturing excellence; based on a solid foundation of technical knowledge, with leadership that guides; in a relentless drive to improve core values, and creates an efficient work flow; from raw materials to superior finished products, with the capability and manufacturing discipline that can respond to any challenge”.

Marrose Abrasives are a leader in glass polishing wheel manufacture and technology, and have developed into one of the most recognised, reliable and trustworthy brands supplying high quality polishing wheels to the glass industry in 2016.

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China Glass Shanghai 2016 New Product Development At China Glass 2016 Marrose launch a new range of POLYURETHANE cup wheels for straight line and double edge grinding machines, this long awaited addition to our range of polishing wheels gives the glass processor a large choice of polishing wheels to achieve the best finish and lowest possible polishing cost on any grinding machine.

Marrose Abrasives in China For over 20 years the Chinese glass processing industry has played an important role within Marrose Abrasives global sales activity, with our main distributor: Jiangmen Jiangyi Industrial Co. Ltd, 244 Qing Lan Road, High-New Industrial Zone, Jiangmen, Guang Dong , tel: 86-750-3410888 fax: 86-750-3410838 e-mail:sales@jyglassmachine.com

江门市江艺实业有限公司 Jiangmen Jiangyi Industrial Co., Ltd Marrose make frequent visits to the Chinese market, and is a regular exhibitor at China Glass in Shanghai and Beijing, to support existing distributors from around the world; welcome overseas customers, and potential new customers and distributors.

Within Marrose strategic brand management strategy, we operate a dedicated account manager support structure; demonstrating our commitment to high level sales, marketing and technical assistance to distributors; creating clear channels of communication; from order processing, manufacture, through to dispatch and on time delivery.

Ensuring our customers are receiving an outstanding level of service.

Marrose Abrasives export 80% of its manufactured products to countries such as China, India Indonesia, Malaysia, South Korea, Thailand, Vietnam, Middle Far East, Australia, Russia, Europe, North, South & Central America.

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Working on all thicknesses of glass, the new range of wheels comes complete with a rigid, moulded back plate giving stability in all conditions, ensuring maximum lifetime and ease of use from start to finish.

This new product range comes after many years of product development and testing – including in house testing on our own 9 spindle upright edger.

Marrose Abrasives are active members of the British Abrasives Federation (BAF) and FEPA (Federation of European Producers of Abrasives), working on EN safety standards, FEPA safety codes and ISO dimensional standards for abrasives.

Contact details:

John Day (Global Sales Manager) Marrose Abrasives Ltd North Beck Mills, Becks Road, Keighley BD21 1SD, UK Tel: +44 (0) 1535 602634 Fax: +44 (0) 1535 610095 Email: sales@marrose.com Web: http://www.marrose.com

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ANALYSIS: Egypt

A clear opportunity container glass feels an upturn Yogender Malik discusses how Egyptâ&#x20AC;&#x2122;s container glass sector is enjoying a resurgence as economic conditions improve.

A

fter a long period of average demand, Egyptian container glass industry is registering good growth.

A steady increase in food and beverage consumption in past two years, after a lull of two years has brought cheers back on the face of domestic container glass producers.

Served by six mid scale container glass plants ( four companies), Egyptian container glass industry is coming out of its most turbulent times. A general slowdown in economy, which had an adverse impact on container glass demand and sudden spurt in fuel prices with the removal of subsidies by government had a twin affect on container glass production and consumption.

Advantage Egypt?

Endowed with one of the highest quality of silica sand, relative cheaper energy cost, changing lifestyles, increasing disposable incomes and huge domestic market has provided a boost to Egyptian container glass industry in past few years.

Countryâ&#x20AC;&#x2122;s container glass industry enjoys a significant cost advantage relative to international peers due to its lower cost base and access to quality raw materials, translating into a competitive export

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advantage with rewarding margins. The country is therefore a very attractive market for container glass producers from which to export internationally.

The availability of quality raw materials for glass production is a decisive competitive advantage for Egyptian container glass producers. Almost all the input materials are domestically available at comparatively cheaper prices. In the past, Egyptian based container glass producers have lacked state of the art technology primarily due to low quality requirements of container glass in the domestic market. However, currently all of them are equipped with state of the art manufacturing plants and most up to date technologies.

Geographical proximity to Asia, Europe and Africa has further fueled the demand of container. Glass production, which till not very long back was controlled by ramshackle state enterprises, shifted to ultra modern state of the art modern factories with a quantum jump in scale and scope of production in the last decade.

Though, Egyptian government has slashed the energy subsidies to glass industry in two stages in past seven years, yet the natural gas prices are still more competitive in comparison of a number of countries. Natural gas prices

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ANALYSIS: Egypt

Egyptian container glass in focus 2014 (in tons)

2013 (in tons)

2012 (in tons)

2011 (in tons)

2010 (in tons)

Container Glass Production

383,000

360,000

339,000

299,000

301,000

Exports

34,000

29,000

32,000

31,500

30,000

Imports

43,000

42,000

49,000

52,000

74,000

are higher than some of the Middle Eastern countries, but availability of other raw materials for glass production in the domestic market offsets the slightly higher energy prices vis-s – vis other container glass producers in the Middle East region.

Ups and downs

No doubts that political turmoil of 2011 and its aftermaths have had a negative effect on the growth of container glass industry in Egypt. New investments in container glass industry came to a standstill during 2011, 2012 and most of the 2013 due to political and business environment. Egyptian glass industry ( all the three major sub-segments )had paid a particularly heavy price for the country’s political transition with a historic drop in production output in 2011 and 2012.

In last two years, Egyptian government has taken various steps to boost the economy and consumption. The Sharm el-Sheikh conference was held in March 2015, in the hope of translating the international support for Egypt’s new regime into investment flows, especially from Gulf region allies and sponsors, such as Saudi Arabia and the United Arab Emirates. However, things have not gone as planned. Despite the relative stabilisation in Egypt after four years of turmoil, the regional and global economy entered a new phase of contraction which has had a negative impact on Egyptian tourism industry, which is one of the key factors of consumption in the country.

Demand drivers

With one of the largest population in the region Egyptian container glass industry has many reasons to cheer. Along with the sizable population, a large section of which is under 40 years, rising disposable incomes and changes in lifestyle and spending is expected to drive the growth of container glass industry and consumption in the coming years.

Recent trends of consolidation and modernization in domestic container glass industry indicates that domestic glass producers are preparing themselves for a brisk period of growth, which is expected after recent government initiatives and growth in Egyptian economy after a long spell of average growth.

Major container glass producers in Egypt Company

Establishment

Installed Capacity

Arab Pharmaceutical Glass

1984

500 million bottles/ year

National company for Glass and Crystal

1980

150 TPD

Middle East Glass Manufacturing Company

1983

230 TPD

Misr Glass Manufacturing Company

2004

380 TPD

Wadi Glass

2007

330 TPD

Kandil Glass

2005

370 TPD

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Beverage (both alcoholic and non alcoholic) are the largest sub-segments of container glass consumption. Despite, being a country with large Muslim population, beer and alcohol are produced in the country, which like elsewhere on the globe are one of the most lucrative sub-segments for container glass producers in the country. In addition to domestic consumption, a vibrant tourism sector has been one of the prime reasons of steady growth of the liquors and indirectly to container glass consumption. Non alcoholic beverage sub-segment has also registered steady growth and is expected to grow at faster rates in coming days due to demographic reasons. Currently, PET bottles have a large share in the total consumption, but climatic factors make glass an ideal packaging material for these products.

Food packaging, which until very recently didn’t have a significant share in container glass consumption, has been increasing its share in total container glass consumption in the country. Modern retail channels and increasing purchasing power are expected to give a boost to container glass consumption in coming days.

Pharmaceuticals sub-segment has maintained its status quo for a long time in Egyptian container glass industry. However, this sub-segment’s relative share in the total pie has come down by many % points due to rapid demand increase in other sub-segments. Increased focus on healthcare and well being is expected to make some impact on container glass consumption in coming days.

Middle East Glass

Listed on Egyptian Stock Exchange, Middle East Glass Company is one of the oldest container glass producers in Egypt. The company, which commenced container glass production in 1983 at Nasr City, Cairo has also become the largest container glass producer in the country on account of its two recent acquisitions ( Wadi Glass and Misr Glass Manufacturing Company).

Middle East Glass was the first privately owned glass company to start production in Egypt. Owned by Yemeni tycoon Shaher Abdel Haq, it is a part of the Shaher Group, which also owns 58% of Coca-Cola Egypt, the company was established to supply glass for the group’s soft-drink business. Besides Coca Cola, MEG also provides glass bottles to the two other major beverage producers in Egypt: ABC and Pepsi.

Company’s own manufacturing facility are located on an extensive site of more than a 100,000 square meters in Nasr City and can produce a wide range of returnable and non-returnable glass containers in both green and flint colours. MEG had doubled its production capacity to over 100,000 tons of container glass in 2009.

A 100% acquisition of Wadi Glass Manufacturing Company in 2014 added an additional 100,000 tons of glass capacity consistent with the strategy to grow scale and meet the demand of company’s key customers in domestic and regional markets.

MEG recent acquisition of Misr Glass Manufacturing has created the largest glass packaging manufacturer not only in Egypt but also in the MENA region and establishes a solid ground for further growth, including cross-border regional and international expansion. Prior to this deal, MGM was the second largest container glass manufacturer with three furnaces having a total production capacity of 200,000 tonnes per annum, producing glass containers in flint, amber and green colours .

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ANALYSIS: Egypt

Packaging share evolution 2014

2013

Glass

PET

2012

Aluminum and Metal

Post acquisition, the Group has six furnaces with a combined total production capacity of 378,000 tonnes per annum serving major local and international food and beverage firms.

Dr. Karim El Solh, Chief Executive Officer of Gulf Capital, which controls Middle East Glass company says, “MEG is rapidly positioning itself as the largest Arab glass packaging manufacturer, both through organic growth and through acquisitions. This latest acquisition of Misr Glass Manufacturing gives the combined businesses significant scale and allows MEG to increase its share of exports. The investment in MEG and MGM fits with our strategy to partner with exciting local companies and to grow them into regional and global leaders. It also allows us to make indirectly a strategic investment in the fast growing Egyptian consumer market.”

The MGM acquisition is expected to create significant operating leverage and production opportunities across the combined platform. The local integration of glass operations will realise operational efficiencies and procurement synergies.

With six furnaces, the enlarged platform will effectively manage its production capacity and deliver better flexibility, faster response time and higher service to its customers. The acquisition will provide MEG with significant capacity enabling it to expand its export base into new markets Speaking on the acquisition, Abdul Galil Besher, Chairman of Middle East Glass, says “With this latest acquisition, Middle East Glass will become the leading glass packaging manufacturer in Egypt with a strong platform to accelerate our export led growth to our traditional regional food and beverage customers and beyond.”

Besher further adds, “ Misr Glass Manufacturing brings a strong customer base in our target markets, an attractive portfolio of products and flexible production capacity and will add depth to our leadership team.

We are very confident that the acquisition will create significant value for all MEG stakeholders.”

Wadi Glass

Now a subsidiary of Middle East Glass manufacturing company, Wadi Glass was a subsidiary of one of the largest business conglomerates in Egypt, Wadi Group . The Group had diversified into container glass production in 2005 to meet captive requirements of its packaged food business. Wadi Group is originally a Lebanese-owned agri-business that established its business in Egypt in the 1980s.

Located in Sadat City Industrial Zone, Wadi Glass or Zugag (glass in Arabic) commenced production in January 2007 with an installed capacity of 90 Tons of flint glass. Catering to food and beverage market demand of container glass, Wadi realized in 2008 that with 90 TPD capacity, the company is unable to meet the explosive demand of region’s container glass. It decided to augment the installed capacity and fired a new 240 TPD furnace in 2010. Currently the company has an installed capacity to produce 350 TPD of container glass for food and beverage sub-segments.

The company claims to provide fast and flexible deliveries of container

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2011

2010

Tetra Pack

glass on long run, short run and trial orders of any size, shape and quantity of containers for clients in the food and beverage industry across the Middle East, Europe and Africa.

Misr Glass Manufacturing Company

The most recent acquisition of Middle East Glass manufacturing company, Misr Glass Manufacturing Company was established in the middle of last decade.

MGM, as it was earlier known specialises in the production of lightweight flint, green and amber glass containers for food and beverage industry. Originally promoted by El-Zayat Group, which was the management shareholder of AlAhram Beverages Company before its acquisition by Heineken International, the erstwhile promoters are known for their success in making Al-Ahram Beverages Company one of best success stories in country.

Misr Glass Manufacturing purchased the fixed assets of ill managed El-Nasr Glass Company at Mustorod, which was sold as part of Egypt’s privatization program. El-Nasr Glass Factory was a public sector company established in 1970 using at that time the latest technology to produce light weight bottles and pharmaceutical ampoules. However, the company could not put state of the art technology and continued to rely on the technology of 1970’s.

Combining the strategic experience of the El Zayat Group management team, and glass making expertise of El-Nasr employees who joined MGM after acquisition and fresh investment to acquire state-of-the-art technology, MGM increased its annual production capacity from 36,000 tonnes in 2003 from 3 old furnaces to 138,000 tonnes using three new furnaces by the fourth quarter of 2007. In November 2012, MGM invested in the overhaul and expansion of its biggest furnace to increase its production from 160 tons/day to 210 tons/ day. The company added three new 10 sections, double Gob forming machines from Emhart and six new inspection machines from SGCC. Due to MGM’s good results, the company attracted investment from a leading private equity fund in September 2007 when Mena Glass Limited (a subsidiary of Citadel Capital, one of the largest private equity firms in the MENA Region) bought a stake of 35% in the company.

Realizing the importance of pharma glass demand in the country and region, MGM decided to start a new manufacturing in last decade. In 2008, MGM established United Glass Containers Company ( UGC) in the 10th of Ramadan City to produce pharma glass containers and ampoules with an installed capacity of 150 million units per year. Huge demand from this sub-segment forced UGC to undergo a capacity expansion. In 2012, United Container Company installed two new production lines for glass tubes forming from leading technology supplier, OCMI to increase ampoule annual capacity from 150 to 200 million ampoules per year.

Kandil Glass

Established in 2005 ( as Kama Glass) to supply and serve the local and export markets for container glass for the food and beverage industries with a capacity of 22,000 TPY, Kandil glass has rapidly increased its market share in Egyptian

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ANALYSIS: Egypt

glass industry. Currently serving container glass requirements of leading multinationals such as Heinz, Schweppes and Americana; and local market leaders such as Faragalla, Best and El Masreein, the company is second largest container glass producer in the country with an installed capacity of 370 TPD. According to Kandil Glass’s CEO, Khalil Kandil, “We have adopted to a corporate structure that is relatively uncommon for companies operating in the Middle East region. We have restructured the company in line with something called ‘process orientated governance. The company is not divided in terms of expertise, but segregated in terms of different processes headed by process-owners. That means there are no traditional divisions such as engineering or production.

Instead, we have a product supply process that is headed by an owner, and under this structure we are able to set a number of sub-processes. This model was adopted by GE several years ago and it enables us to more efficiently dictate the role of each person within the company. “

Arab Pharmaceutical Glass

Serving the demands of container glass of major pharmaceutical companies in Egypt such as GSK, Novartis, Aventis Pharma, Arab Company for Pharmaceuticals and Medicinal Plants, EIPCO and many others, Arab Pharmaceutical Glass is among the two major container glass producers for Egyptian pharmaceutical industry. Egyptian Ministry of health is a major shareholder in the company.

Company produces an entire range of standard and customized container glass

products in the following categories in different specifications; ogivals, verals, vials and drops.

The company claims that it has invested in state of the art technology at its plant, which houses an electronically controlled batch house, glass melting furnaces, 6 automated production lines, electronically controlled state- of-the-art forming machines and inspection machines. With an installed capacity of 1.25 million glass container per day, Arab Pharmaceutical Glass is able to meet a major share of domestic pharma industry’s container glass demand.

National Company for Glass & Crystal

The National Company for Glass & Crystal S.A.E. manufactures and supplies various types of glass containers for food and beverage industries. The company also provides designing, drawing documentation, and packaging services to its customers. Founded in 1984, the company’s manufacturing facility is located at 10th of Ramadan city. The company operates as a subsidiary of Abu Dhabi Islamic Bank.

With an installed capacity of 150 TPD of container glass, National Company for Glass & Crystal meets the packaging demands of a number of food and beverage companies in the country. The factory was set up in technical collaboration with Oberland Glass AG of Germany, which enables Arab Pharmaceutical Glass to deploy NNPB technology and making it one of the first companies in the region to use the technology.

ADVERTISER FEATURE

SCOUT – the latest inspection technology from Bucher Emhart Glass Bucher Emhart Glass, the leading supplier for glass forming and inspection technologies launches the latest evolution in inspection technologies – SCOUT. Powered by SCOUT is not just software. While it is true that SCOUT is software, it also is the platform that will be the foundation for current and future inspection technology improvements. Today, SCOUT allows BEG to offer better lighting, higher resolution optics, faster and more powerful processors, advanced inspection algorithms and a simplified user interface that is both intuitive and easy-to-use.

Regardless of the inspection configurations, all FleXinspect machines delivered today are equipped to operate with SCOUT and all of the technologies and benefits it offers. Current users of the FleXinspect B, C and BC machines will be able to update their equipment to SCOUT and gain the functionality and advantages it offers. This is the evolutionary advantage of the FleXinspect concept. These machines’ electronics and modular mechanical designs are built to be able to evolve and improve as inspection technologies advance.

For customers who have previously invested in the Emhart Glass Veritas iB and iC vision inspection systems, there is now an upgrade path to bring these Veritas to the SCOUT and FleXinspect technologies platform. This ensures that machines already in place can be modernized to the latest and best for the next furnace campaign, without the need to replace them with new machines.

MULTI-TOUCH SCREEN DISPLAY The SCOUT software is designed to operate with a 21.5” high definition multi-touch screen display. FleXinspect is the first inspection system to use an ‘Apple iOS/Android’ type human-machine interface concept.

Think smartphone meets inspection machine! Users navigate through the SCOUT system using the same tap, swipe, pinch and reverse-

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pinch techniques used to navigate through apps on smartphones or tablets. This software platform also allows BEG to make proprietary, inhouse advances in image and inspection processing that are improving the inspection accuracy, precision and reliability of base, sealing surface, sidewall and dimensional inspections, as well as mold number reading.

Controlling all aspects of the inspection technology (hardware and software) enables the company to take the next step in the evolutionary path; closing the information loop between container forming and container inspection.

REALISING DREAMS FleXinspect with SCOUT is allowing companies to take these first essential steps forward in meeting that requirement. By sharing the knowledge and expertise between the inspection and forming resources within BEG, the dream of automating the container manufacturing process based on precision measurement results will soon be a reality. In the future, inspection machines will no longer be a filter to remove bad containers from the production line. They will play a larger role in controlling the actual quality of the container by acting as a precision sensing device that monitors and feeds back information based on process changes and conditions. This next step is one that will be both evolutionary and revolutionary to the glass container industry.

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Marlen Debrot Telephone + 41 41 749 42 00 E-Mail: webmaster@emhartglass.com www.bucheremhartglass.com http://www.scoutbyemhart.com AG 16-2 asianglass

67

ANALYSIS: Indonesia

Turning corners glass processors see long-term recovery

SRK safety glass tower: Photocredit SRK

Jahir Ahmed discusses how improvements in spending power and aspiration are likely to have a long-term benefit to Indonesiaâ&#x20AC;&#x2122;s glass processing industry.

T 68

he light may be there at the end of the tunnel, but Indonesian glass processors have still got a bit further to walk yet. They were at last blessed with the government efforts to rescue the glass market from the year long stagnation of consumption following weaker demand at home and the world markets in a slowed economic performance. The market still remains in the process of improvement, Asian Glass was told by Putra Narjadin, Chairperson II, Indonesian Glass Association (AKLP). It will just begin to reap the benefit at low level this year, as expected, he suggests.

asianglass AG 16-2

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ANALYSIS: Indonesia

The Indonesian government is now pushing ahead the consumption by its development projects to strengthen investment confidence in this year. The county’s economy underperformed last year due to prolonged delays in government spending, sluggish private investment and the impact of weak global markets on external sector growth. As a result, the glass processors experienced a slump during the year. The government drive to improve the situation is expected to increase demand for the processed glass.

The strategic public sector spending is expected to increase the demand for the processed glass based products in the coming months at a lower level, according to AKLP. “The government is investing heavily in infrastructure, but the benefits for the glass industry will not be felt so soon,” said Putra. “After the ongoing projects of highways, sea-ports and airports have been built, it will take a few years for the area to develop and high-rise buildings to appear. Only then, will we see the increasing demand for glass in those areas,” he added.

Besides building and housing, the other industrial sectors that consume processed glass are also enjoying stimulating impacts by the large scale public spending, while money inflation is going to be stabled at a comfortable level, and hopefully increasing employment opportunities are expanding spending-power of the consumers.

AKLP said that the glass industry in Indonesia is dependent on the demand from the property and automotive sectors, the main markets for glass producers. “The growth in the infrastructure sectors, particularly property and construction as well as automotive, will improve glass sales,” hopes Putra who is an owner of the leading glass processing company, Sinar Rasa Kencana (SRK) that manufactures processed building and industrial glasses and automotive glass.

In Indonesia, according to Putra, there are about 15 large glass processing companies that are capable of producing tempered and laminated glasses, insulating glass, automotive glass, etc. There is only 1 magnetron (off-line) solar-control and low-e coating company. To feed the glass processors, there are only 3 float glass manufacturers with a total production capacity of about 1.5 million tons per year.

Last year, the manufacturing sector, including glass industry, remained stagnant and exports contracted, while many economic challenges will continue this year. There is a renewed hope that public investment and infrastructure spending will finally kick into higher gear and boost the economy. The government continues in its push to remove bottlenecks and several large projects are set to begin. In January, President Joko Widodo inaugurated construction on the country’s first bullet train line, a key project in the government’s broader plan to overhaul infrastructure and build up investor confidence.

Despite slowdown, Indonesian economy has performed about five percent GDP growth in 2015 and it is estimated that growth will accede five percent this year, according to official sources including World Bank.

The economic expansion is forecasted to continue at over five percent up to 2020. Rodrigo Chaves, World Bank Country Director for Indonesia, suggests that “If reforms are sustained and implementation is effective, Indonesia

70

asianglass AG 16-2

may be buffered from potential volatility and enjoy higher growth in 2016.”

In this scenario, the glass industry is a little optimistic, because, the latest initiative of the government is expected to implement a number of strategic policies in the economic and financial areas that can help increase the purchasing power of the consumers and strengthen competitiveness of the manufacturing sectors, including glass industry.

The country’s central bank is trying to stabilize Indonesian currency, Rupiah, exchange rate and its volatility to prevent the manufacturers from experiencing substantial losses in every passing day. KBD Daewoo Securities analysts believe that much of the manufacturers’ economic difficulties is related to the continued erosion of rupiah.

Photocredit SRK

Competitiveness

In terms of production capacity, the local glass processors have the capacity to meet the local demand for highrise buildings and automotives. However, like almost all other industries, the glass industry in Indonesia is facing stiff competition from the products imported from China. “Many of the new iconic skyscrapers in Jakarta and other big cities use glass that is imported directly from China in finished goods form, mostly high performance low-e insulated glass,” said Putra. “The import of these glass are either done by the building owners themselves, or through the aluminium fabricators. Obviously, this is affecting the local glass processors,” he added.

To improve the domestic market shares by the local manufacturers, the investment in existing and new plants are continuously going on.

“Nevertheless,” said Putra, “the local glass processors are upgrading or expanding their production facilities to face the competition. From 20142015, at least 4 new tempering furnaces were installed that are capable of tempering double-silver low-e glass. One of these is capable of tempering 2.85x8.6m glass, which is the biggest outside of China. In the same period also, at least 3 other companies have invested in the latest digital printing technology, bringing the total to 5 digital printing machines.”

The investment to improve production and compete against imports are continuously rising. Everyone is under pressure to improve quality and competitiveness, although, in present situation, return is not significant to everyone. They are just waiting for a good time ahead.

In Putra’s own processing unit, SRK, the investment is in access of US$10 million for processing annually some half a million square metres of glass for various industrial and architectural uses, including automotive sectors. Companies like SRK are now waiting for a boost in demand.

However, SRK has previously had good business. The large capacity of the tempering line prompted SRK to invest heavily in pre-processing equipment. These machines, supplied mainly from European manufacturers, not only boosted the production capacity, but also improved the tolerances and quality of the finished glass. At present, SRK has three automatic cutting lines, three CNC double-edging machines, two CNC Intermac shape-edging machines and various other preprocessing equipment. For increased demand in laminated glass, SRK invested in a laminating line.

Now, many of the most modern and beautiful buildings in Indonesia and

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ANALYSIS: Indonesia

PT Asahimas Flat Glass Tbk (Indonesia-Japan joint-venture unit and subsidiary of AGC Group of Japan)

the region are clad using SRK laminated glass.

There is a general consensus that the implementation of the existing public projects, specially, in the infrastructural sectors will boost demand for architectural and automobile industry sectors and also for utilizing the existing installed idle capacities and resume installation of underconstruction plants. Potential public spending will help boost sales, eventually resulting in expansion of market demands for glass products and export of some of them.

At present, approximately 70 to 80 percent of the national glass market is dominated by the property and construction sectors. The remaining 20 percent is aimed at fulfilling the demand from the automotive industry.

In terms of market destination, the glass industry also sells its products to other countries in Southeast Asia and Middle East, and in Japan, New Zealand and others, aside from supplying for the domestic market. About a third of the productions are exported.

Possible beneficiary

Among those industrial sectors to be stimulated by the public sector spending to increase the market demand, automobile manufacturing is likely to be a major beneficiary if sales decline is halted and some rise in car output helps push ahead the demand for automotive glass that experienced difficulties last year, according to Association of Indonesian Automotive Manufacturers (Gaikindo).

When Indonesia’s car sales plunged by 15.5 percent to 671,679 units for the January-August period last year from 794,775 units in the same period of 2014, mainly driven by weaker consumer purchasing power, French multinational Compagnie de Saint-Gobain delayed its plan to build an automotive glass production facility in the country in 2015 as national car sales were forecast to hit a three-year low amid economic slowdown.

Saint-Gobain CEO Pierre-André de Chalendar said that his company had decided to hold back its investment in the auto glass plant until the four-wheeler car and truck market started to recover. “We’re not going to do it this year, we’ll do it once the market recovers,” he said after stalling construction in the second half of last year.

Saint-Gobain, which already purchased land at the Cikande industrial estate in Banten for the project at about US$22.4 million, has to stall the construction as Indonesian national auto sales for 2015 were forecast to drop to a depressing 1 million units, according to data from the Gaikindo.

The reported car sales of 1.23 million units in 2013 declined by 1.6 percent to 1.21 million in 2014 and then dropped by a drastic 17 percent to 1 million units last year, causing a sales crash, from a 20,000 decrease in 2014 to a plummeting 200,000 plus in 2015.

KBD Daewoo Securities analyst Maxi Liesyaputra has predicted that the automotive industry will continue to face challenges in 2016, given a weakening Rupiah against the US dollar. The Indonesian currency is lower in 2016 at an approximate average of Rp 14,500 per US dollar, than the 2015 average of Rp 13,400.

Retaining hopes

AKLP sources said, from 2008 to 2015, the property market in Indonesia was in a cycle of boom, and there are many buildings being built. The local glass processors still have a substantial market share, especially in the smaller buildings that do not use high performance insulated glass. “Sadly,” said Putra, “in mid 2015, the property market slowed down and is now stagnant. There are fewer new constructions slated for 2016 compared to the previous years.”

“I personally think it will be at least mid 2016 or early 2017 that we start to see more new constructions, of course, depending on the Indonesian and global economy,” Putra suggested.

Despite such mixed outlook, Indonesia’s largest float glass manufacturerprocessor, PT Asahimas Flat Glass Tbk (AMFG), the Indonesian arm of Japan

72

asianglass AG 16-2

Location: 3 plant locations, Jakarta, Cikampek in West Java and Sidoarjo in East Java, Indonesia.

Products: Float glass, processed glasses for building and industrial uses, automotive glass and mirrors.

Markets: Domestic and export markets.

Others: Asahimas float glass, construction glasses, tempered and laminated safety glasses, automotive glasses, figured glass, glass mirrors, heat-reflective glass and Optima brand IGU panels are widely used in Indonesia and abroad, and capturing demand steadily in the emerging markets.

PT Muliaglass (Mulia Industry/Mulia Industrindo) Location: Lemahabang, Cikarang, Bekasi 17550, Indonesia.

Products: Float glass, safety glass, building glass and automotive glass.

Markets: Domestic and export markets.

Others: Muliaglass produces 120,000 car sets of automotive glass, marketed at home and worldwide. Its float glass is of different shades and thickness for various uses and processing. Its safety glasses also have demand for building and industrial uses.

PT Sinar Rasa Kencana (SRK) Location: Tangerang, Indonesia.

Products: Tempered/laminated safety glasses, automotive glass, IGUs, architectural/ industrial glasses.

Markets: Domestic and export markets.

Others: Sinar Rasa Kencana (SRK) is in the automotive, architectural and industrial glass markets. It is capable of tempering glass panels of up to 7,000mm long by 2,140mm wide. It processes about half a million sq metres of glass per year.

Roxy Glass Location: Pusat Niaga Roxy Mas, Jl KH Hasyim Ashari 125B, Jakarta, Indonesia.

Products: Various processed glasses, including decorative glass panels and IGU. Markets: Domestic and export markets.

Others: Roxy produces, also handcrafts, some 10,000 pieces, per month, of quality safety and building glasses and mirrors of classic/contemporary designs. Its triple glazed IG in lead and brass insert is known as ‘Roxy Glass.’

PT Surya Adhitia Fortuna Glass (previously PT Surya Fortuna Glass) Location: Batuceper, Km. 23, Tangerang 15121, Banten, Indonesia.

Products: Processed glasses Markets: Domestic and export markets.

Others: Surya Adhitia Fortuna’s tempered glasses are available with ceramic frits (ceramic coated to create desired motifs), usually applied in home appliances, electronic panel, room divider, bus and train windscreen, etc.

Abebersa Pratama PT Location: Bekasi, Jawa Barat, Indonesia.

Products: Processed safety glass and building glasses including IGU. Markets: Domestic and export markets.

Others: Abebersa Pratama manufactures double and triple glass window and curtain wall IGUs, insulating glass panels, architectural and decorative glass panels and tempered/toughened glasses.

PT Mayatama Manunggal Sentosa Location: Singosari-Malang, East Java 65153, Indonesia Products: Processed glass and crystal safety glass for building, automotive and industrial uses.

Markets: Domestic and export markets.

Others: Mayatama Manunggal Sentosa is the holder company of ‘Diamond Tempered’ brand that involve in glass processing. It also produces printing glass for furniture, industry, building and automotive.

SRK building glass: Photocredit SRK

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ANALYSIS: Indonesia

based AGC Group, has been going ahead with expansions of core products, float glass and safety glass including automotive glass, to grab more market shares, depending on brighter outlook of the coming years.

Parallel to the slowed economic performance in Indonesia, AMFG expects its business will still grow in line with the rapid growth of the middle-class’ productivity. The young middle class in society with ever increasing income has a high need to own property and automotive products, the company observed. Its float and processed safety glass have been contributing tremendously to the growth of property sector in Indonesia, it believes.

This has made it courageous to go with implementation of its new float plant in Cikampek with a production capacity of 210,000 tons a year. It is being built at about 85 km east-southeast of the Jakarta plant, to expand markets of float and processed glasses in Indonesia and other emerging economies. The new furnace is being constructed adjacent to Asahimas’ existing and major safety and automotive glass fabrication plant in Cikampek.

AMFG’s existing two producing float glass plants are located in Jakarta and Sidoarjo, near Surabaya, where safety glasses are also produced.

The Jakarta location is now under severe pressure of rapid urbanization and the Indonesia government’s development plans for improving the city’s living atmosphere, for which the company needs a better factory environment and more opportunities for smooth expansion considering Indonesia’s future demand.

Currently Asahimas has a production capacity of 570,000 tons of float glass, 4.5 million sq meters of safety glass and 2.4 million sq metres of glass mirrors. After construction of the new furnace in Cikampek in the third quarter of 2016, the production capacity of float glass will initially increase to 630,000 tons a year.

Demand for architectural glass and automotive glass in Indonesia is expected to keep growing against the backdrop of the country’s steady economic growth. The construction of a new furnace is intended to achieve a competitive production framework to meet the growing demand in the region, the AGC Group observed.

AMFG’s flat glass products are used partly as glass application on buildings, interiors and as raw materials for further processed glass and automotive glass. It produced about 52,000 tons of automotive glasses in 2014 and has a growing demand, because of expansion of automobile productions in Indonesia and other regional countries.

PT Multi Arthamas Glass Industry (MAGI) Location: Surabaya, Propinsi Jawa Timur, Indonesia Products: Processed safety glass.

Markets: Domestic and export markets Others: Multi Arthamas produces tempered, laminated and bending glasses for automotive, building and industrial uses.

PT Tossa Shakti Group Location: Raya Semarang-Kendal KM 19, 5, Kendal, Indonesia Products: Float, figured/pattered and processed glasses.

Markets: Domestic and export markets Others: Tossa Shakti group has 2 manufacturing factories, PT Tossa Shakti Float Glass for float, and PT Tossa Shakti Figured Glass for figured/patterned glass, with daily production capacity of 900 tons and 70 tons, respectively.

PT Abdi Rakyat Bakti Location: Sei Rengas I, Medan Area, Medan 20214, Sumatera Utara, Indonesia Products: Sheet glass and processed glasses.

Markets: Domestic and export markets.

Others: Abdi Pakyat Bakti markets its float and processed glasses in Indonesia and neighbouring countries.

Tunggal Majuasri Glass PT Location: Kawasan Industri Benua Indah, Tangerang 15131, Banten, Indonesia Products: Flat and processed glasses.

Markets: Domestic and export markets.

PT Tensindo Location: Nolokerto Kendal 51372, Kaliwungu, Semarang, Jawa Tengah, Indonesia Products: Flat and processed glasses.

Markets: Domestic and export markets SRK building glass: Photocredit SRK

Changing lifestyles

Indonesia’s increasing middle class population is aspiring to move towards a more upper scale of lifestyles. The newly entrant mid-level middleincome consumers are spending on owning new cars. This has prompted automotive glass manufacturers like AGC and Compagnie de Saint-Gobain to plan for new investments to respond the growth of the local automobile assembling plants in the coming years when Indonesia is expected to expand export sales of cars and other commercial vehicles.

A joint effort of France based Saint-Gobain and Japan’s third largest flat glass manufacturer Central Glass Co Ltd is poised to tap the growth of the Indonesian economy and its growing automobile manufacturing.

By entering a 50:50 joint venture, the two companies have founded an automotive glass manufacturing company, PT Central Saint-Gobain Sekurit Indonesia, to produce and sell automobile glass in Indonesia. The work of the project was in progress till the third quarter of last year when it delayed completion of the project following current slump in demand of cars.

To make the joint-venture successful in responding to the rapid growth of the Indonesian automotive market in the past years, both the partners have started efforts to install a latest and highly efficient automobile glass plant capable of producing laminated automotive glasses for

74

asianglass AG 16-2

SRK glass in Singapore: Photocredit SRK

www.asianglass.com

ANALYSIS: Indonesia

500,000 vehicles per year in eastern Jakarta, with planned start up in 2016. According to a latest decision of the joint venture, if the Indonesian market recovers this year, construction of the plant will resume.

Saint-Gobain Group and Central Glass Co have joint venture collaborations in Japan and China, entering in 2002 and 2012, respectively.

The Indonesian joint venture is third one and represents the potential growth in their collaborations in the strategically important emerging countries of Asia where several million units of cars are produced annually.

AMFG is already exploiting the regional markets successfully.

Compared to Central Saint-Gobain Sekurit Indonesia, Asahimas’ automotive glass plant in Cikampek is much larger. Asahimas produces tempered glass and laminated glass with the current total capacity of 5 million sq metres per year or equal to the use of glass for 1.5 million car units, which was almost the maximum total capacity, and AMFG will always adjust its capacity in line with the growth of car sales in the coming years to support the growth of Indonesia’s automotive industry.

London headquartered investment and markets analyst organization BMI Research, which has research operations through its Southeast Asia based office in Singapore, reports that the overall vehicle markets in Indonesia will return to positive growth in 2016, due to recovery in economic growth, lower inflation and monetary policy easing.

However, the increasingly developed economy, international interest and closer integration with the rest of the Association of Southeast Asian Nations (ASEAN) will increase Indonesia’s attractiveness to foreign investors, says BMI Research, which is a part of global ratings agency Fitch Group, majority owned by Hearst Communications Inc of USA. Indonesia’s major glassmaker PT Muliaglass’s safety glass division also manufactures various tempered and laminated glasses of some half a million sq metres for automotive industries, special vehicles and transports including railcars, and for replacement and spare-parts markets.

One of the market leaders, glass product and ceramic tile manufacturer PT Mulia Industrindo Tbk, operates the major glass subsidiary, Muliaglass, producing float glass, glass containers, glass blocks, and safety glass.

Muliaglass’ Safety Glass Division has a production capacity of 150,000 cars set annually.

Through the advanced computerised technologies, world’s some of the best machineries with the support of highly qualified with experienced management, Muliaglass has succeeded in achieving good reputation with the major car manufactures as their OEM suppliers.

Green cars

For the prospects of the automotive glass segment, the AMFG expects the demand will continue to grow in Indonesia in the coming years. The launch of several types of new cars and demand for Low Cost Green Car (LCGC) in recent years is quite impressive and the improving economy this year is expected to contribute positively to the demand for its automotive glass.

Trend in Indonesian glass trade

In Indonesia’s processed glass trade scenario, some of the imports indicate there exist prospects for new investments. Indonesia’s rapidly expanding export manufacturing and higher growth of domestic consumptions have boosted imports.

Indonesia’s exports and imports of glass under 4 digit HS Codes 7005

Float glass and surf grd polished glass in sheet

7009 7007 7003 7006 7008

Exports in million US dollars 2014

2013

Imports in million US dollars 2012

2014

2013

2012

150.862

153.757

159.322

9.636

13.640

9.269

Glass mirrors

27.797

40.518

28.741

43.996

50.714

42.060

Safety glasses, consisting of toughened/laminated glass

22.796

22.026

21.197

15.244

15.444

20.324

Cast, rolled glass, sheets/profiles

1.032

0.881

0.614

6.661

9.473

10.350

Gl. 70.03, bent, edge worked, not framed etc

0.984

0.600

0.741

0.813

0.914

0.763

Multi-walled IGU

0.271

0.373

0.495

8.864

6.472

9.824

Sources: Asian Glass. Data source: ITC (Geneva) calculations based on UN COMTRADE statistics.

Indonesia’s total exports of processed glass items (including construction blocks and cast/rolled glass, sheets/profiles) in quantity in tons.

Under 4 digit HS Codes.

HS Code

Product label

7005

Float glass &surf grd/polished glass in sheet

7009 7016

2010

2011

2012

2013

2014

Exported quantity, Tons

Exported quantity, Tons

Exported quantity, Tons

Exported quantity, Tons

Exported quantity, Tons

458,354

471,380

431,430

419,275

403,507

Glass mirrors

15,641

13,749

13,404

15,829

17,435

Glass paving block for building/const, glass cube, etc

28,791

22,020

20,146

17,502

17,327

7007

Safety glass, consisting of toughened or laminated glass

19,318

17,354

15,818

14,022

12,969

7003

Cast &rolled glass, sheets/profiles

723

1,261

1,317

2,122

2,515

7006

Glass of 70.03, 70.04, 70.05 bent, edge worked etc not framed etc

138

355

509

288

407

7008

Multiple-walled insulating units of glass

53

69

186

68

68

Sources: Asian Glass. Data source: ITC (Geneva) calculations based on UN COMTRADE statistics.

76

asianglass AG 16-2

www.asianglass.com

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ANALYSIS: Indonesia

SRK building glass: Photocredit SRK

Indonesia’s exports of automotive glass in quantity in tons. Under 4 digit HS Codes.

2010

2011

2012

2013

2014

Exported quantity, Tons

Exported quantity, Tons

Exported quantity, Tons

Exported quantity, Tons

Exported quantity, Tons

HS Code

Export Product Label

700729

Safety glass laminated nes

12,261

10,731

9,666

7,246

5,386

700721

Safety glass laminated for vehicles, aircraft, spacecraft or vessels

4,475

3,787

2,471

3,456

3,686

700711

Safety glass toughened (tempered) f vehicles, aircraft, spacecraft/vessel

1,321

1,172

1,919

1,789

2,058

700719

Safety glass toughened (tempered) nes

1,261

1,664

1,762

1,531

1,839

Sources: Asian Glass. Data source: ITC (Geneva) calculations based on UN COMTRADE statistics.

Indonesia’s total imports of processed glass items (including construction blocks and cast/rolled glass, sheets/profiles) in quantity in tons.

Under 4 digit HS Codes.

HS Code

Product label

2010

2011

2012

2013

2014

Imported quantity, Tons

Imported quantity, Tons

Imported quantity, Tons

Imported quantity, Tons

Imported quantity, Tons

7005

Float glass &surf grd/polished glass in sheet

22,039

11,408

21,704

35,845

22,708

7009

Glass mirrors

5,385

14,007

18,394

22,373

22,377

7003

Cast &rolled glass, sheets/profiles

11,900

5,024

12,214

12,274

14,554

7007

Safety glass, consisting of toughened or laminated glass

2,485

3,693

6,359

7,327

10,955

7016

Glass paving block for building/const, glass cube, etc

8,226

22,662

20,139

12,635

10,922

7008

Multiple-walled insulating units of glass

1,118

3,059

4,482

4,730

6,790

Sources: Asian Glass. Data source: ITC (Geneva) calculations based on UN COMTRADE statistics.

Indonesia’s imports of automotive glass in quantity in tons. Under 4 digit HS Codes.

2010

2011

2012

2013

2014

Imported quantity, Tons

Imported quantity, Tons

Imported quantity, Tons

Imported quantity, Tons

Imported quantity, Tons

HS Code

Product label

700719

Safety glass toughened (tempered) nes

968

1,833

3,510

4,895

8,325

700729

Safety glass laminated nes

117

298

540

340

1,427

700721

Safety glass laminated for vehicles, aircraft, spacecraft or vessels

422

406

532

1,001

688

700711

Safety glass toughened (tempered) f vehicles, aircraft, spacecraft/vessel

977

1,155

1,777

1,090

515

Sources: Asian Glass. Data source: ITC (Geneva) calculations based on UN COMTRADE statistics

78

asianglass AG 16-2

www.asianglass.com

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Landglass: Safety Vacuum Glass sets new standard Following the continuous expansion of world population and economy, enormous consumption of fossil energy leads not only to ecological problems such as greenhouse gas, global warming, sea level rise, tropical deforestation, to name a few, the smog it emits along with wastewater also deteriorate our living environment, imposing big existential risks to human beings by severely compromising the entire ecosystem we all depend on.

In the attempt to resolve the environmental challenge, industries around the world have taken actions to explore possibilities for energy saving. While many in industry sector have adopted green energy resources such as solar and wind power, transportation sector are seeing more and more EVs hit the road. As the sector that accounts for one third of final energy consumption, construction industry is developing energy efficient buildings, correlating reductions in energy use with increased occupant comfort.

As an integral part of green buildings, energy efficient windows and doors are playing an important role. Although doors and windows account for only 10% of the exterior area, they are responsible for 44% of the energy loss. From Low-E to insulated glass, from multi-pane laminated glass to vacuum glass, glass industry has never stopped its innovative effort to resolve this issue.

Originated from Duval bottle, or vacuum flask, vacuum is now the most advanced high-tech product.

The product consists of two or more pieces of flat glass with micro supporting spacers inside and edges sealed to create vacuum chamber in between. Since the first flat vacuum glass prototype was developed by University of Sydney in 90s, glass industry has worked diligently to improve the product in

80

asianglass AG 16-2

all aspects. From degree of vacuum to spacers, from sealing materials to sealing technique, its performance in thermal and sound insulation has been improved considerably. However, how to ensure the safety of the vacuum glass was once a tough challenge to the industry for a long time.

As the world leading glass processing solution provider, LandGlass has profound expertise in core technologies for tempering equipment and tempered glass.

Having glass safety in mind, the Company devoted many years of R&D work to integrating the vacuum glass tempering with LandGlass’ exclusive vacuum glass manufacturing technology. As a result, LandVac® emerged. LandVac ® is a new generation fully tempered safety vacuum glass developed

by LandGlass with independent intellectual property rights. By adopting technologies from various fields, LandVac offers outstanding performance in thermal insulation, soundproof, and condensationfree while maintaining its strength and safety advantage against wind pressure. As robust and wind resistant as tempered glass, its high vacuum inner layer ensures the super low U-value and prolonged useful life.

With its powerful thermal and soundproof features, LandVac brings quietness to home by blocking the disturbance of noises. Combining safety, energy-saving, and comfort, LandVac is the product of unremitting pursuit for innovative technology and better life by LandGlass staff. As greenhouse effect and pollution have become a rising concern in our society, it’s an ongoing endeavor of people to pursue for healthier environment.

While LandVac is an innovative energy efficient product engineered by LandGlass, it is born to lead the trend of glass applications in green building and upscale home appliances with a new standard for the quality of life.

www.asianglass.com

In focus

Anaylsis: Refractories

82

EGYPT PROVES A MAJOR DRAW? AG looks at why Egypt is becoming the “stand-out” investment option for many Chinese companies…

Preferential policies and opportunities generated by the Belt and Road Initiative proving a major draw More Chinese companies are setting up shop in Egypt or expanding existing operations there to take advantage of opportunities presented by the Belt and Road Initiative, as well as the nation’s prime location and rich resources, executives said.

While such a move helps Chinese firms cut costs, due in part to preferential trade policies offered to Egypt in Europe, the Middle East and sub-Saharan Africa, it also contributes to Egypt’s industrialization and creates jobs.

Jushi Group, a Chinese fiberglass manufacturer, set up a local subsidiary, Jushi Egypt, in January 2012. Located in the China-Egypt Suez Economic and Trade Cooperation Zone, the company has an annual output capacity of 80,000 metric tons. The plant cost $223 million.

According to Yang Jixiang, deputy general manager, the subsidiary exported 95 percent of its products valued at about $84 million in 2015 and paid about 135 million Egyptian pounds ($17.1 million) in local taxes.

He said the operation has driven the development of downstream and upstream industries in Egyptian fiberglass. “Two Chinese companies have started businesses in the economic zone to supply us with materials, while an Egyptian factory has upgraded its technology and increased the number of mills it operates from one to four to meet our need for kaolin powder, a raw material in fiberglass.”

The company is building a new assembly line, also with an output capacity of 80,000 tons, which will go into service in June.

Jushi Egypt employs about 1,100 Egyptians, who make up 40 percent of its mid-level executives, and 60 Chinese.

Yang said the Chinese contingent will not be increased to handle the extra capacity.

He explained that the company chose to set up a base in Egypt because of the country’s location and the preferential trade policies it enjoys in other markets. “If you export fiberglass to Europe from China, you have to pay anti-dumping and anti-subsidy duties of 24.8 percent, not to mention the tariff. There is no tariff if you export to Europe or the Middle East from Egypt, nor any anti-dumping and anti-subsidy duties.”

Also, it takes at least a month to ship goods from China to Europe, but from Egypt it takes only a week, and a container could arrive in Turkey in just two days, he said.

Egypt is rich in human and natural resources, too.

“Engineers in Egypt are well-educated,” he added.

In early 2013, Muyang Co Ltd, China’s largest feed machinery manufacturer in terms of revenue, also teamed up with the China-Africa Development Fund to establish Muyang Egypt in the China-Egypt Suez Economic and Trade Cooperation Zone. Together, they made an investment of $74 million.

The first phase of the project went into operation in

asianglass AG 16-2

December. Annually, Muyang Egypt aims to produce 5 million tons of silo storage units, 6,000 tons of steel structures and 50 units of feed machines, a combined sales value of $150 million.

Li Xiangdong, manager of Muyang Egypt, said the factory is in answer to the Belt and Road Initiative, which is an ambitious strategy aimed at better connecting Asia, Europe, the Middle East and Africa through infrastructure projects.

“The Chinese government’s preferential policies have provided us with a very good investment environment,” he said, adding that the Egyptian subsidiary’s products can easily be shipped to markets in the Middle East and Africa via the Gulf of Suez, while cheap labor costs had reduced overheads.

Muyang Egypt will initially concentrate on making silos that reduce the risk of food wastage during storage and transportation, a common problem in Africa, Li said.

Brilliance Auto Group, a Chinese carmaker, has announced plans to restart its assembly line in Egypt this year. The facility ran from 2006 until it was suspended in 2009.

The move is part of efforts to expand into other North African markets and further south. Egypt has the highest per capital GDP in Africa, and its auto market is larger than that of many nations on the continent.

The company has continued selling its cars in Egypt, and has sold about 30,000 since 2009, mostly imports from China, said Zhang Xuecheng, managing director of Brilliance Bavarian Auto, a joint venture of Brilliance and Bavarian Auto Group.

The Egypt facility’s output capacity will initially be 10,000, increasing to 30,000 in five to 10 years, he says, adding that, as spare parts are limited in Egypt, the company also plans to bring some suppliers to the country to reduce costs.

Zhang said the decision to restart the assembly line was made based on two years of market research and because Egypt is an important part of the Belt and Road Initiative.

Guangzhou Dayun Motorcycle Co Ltd purchased 200,000 square metres in the Suez Economic and Trade Cooperation Zone on Dec 3, said Shao Yuebo, head of product research and development at TEDA SEZone Development Co, which runs the zone.

China Glass Holdings Ltd is also considering investing $20 million in the zone. The project would create 400 jobs directly and 2,000 indirectly, and generate $70 million a year in foreign exchange through exports, Shao said.

If it goes ahead, the plant “will promote upstream and downstream industries (in the glass industry) such as mining, energy, hydroelectricity, logistics and glass processing,” he said.

However, Chinese companies face challenges in Egypt.

Although the North African nation has promised rebates for exporters, it is not easy to get them. Jushi Egypt, for example, has only managed to get rebates on two deals, receiving about 70,000 Egyptian pounds, Yang said.

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Window on

CHINA Chinese float glass prices by region Year

Month

China Total

North China

Northeast

Price***

Increase by*

Increase by**

Increase by*

Increase by**

Increase by*

Increase by**

2016

Jan

56.10

-1.3

-1.37

-1.94

3.71

-2.66

-26.78

2015

Dec

56.54

-1.32

0.2

-2.29

4.58

-22.61

-13.37

Nov

57.5

0.17

1.79

-0.3

5.72

-5.05

24.88

Oct

56.71

0.60

-0.10

2.34

5.19

1.76

14.77

Sept

55.79

1.71

-3.77

1.95

1.71

7.97

15.73

Aug

54.18

0.82

-1.78

1.01

2.02

-8.47

21.31

Jul

53.38

-1.83

-2.89

-0.19

0.91

13.35

24.48

Jun

55.30

-1.74

-0.98

-3.95

1.17

-4.73

11.12

May

56.55

2.02

-3.97

5.02

0.22

3.54

13.98

Apr

55.31

-0.42

-5.7

1.93

-5.15

3.86

31.53

Mar

55.68

-0.04

-6.81

0

-8.32

20.02

26.59

Feb

55.84

-1.64

-6.08

-0.05

-8.45

-23.29

7.17

Jan

57.47

0.73

-6.57

-1.01

-8.45

10.95

30.45

Chinese float glass prices by region continued Year

Month

East China

Central South

Southwest

Northwest

Increase by*

Increase by**

Increase by*

Increase by**

Increase by*

Increase by**

Increase by*

Increase by**

2016

Jan

0.99

-4.35

-4.76

-4.29

-0.15

-5.33

-1.48

-8.65

2015

Dec

-0.47

-1.62

0.21

-3.3

-2.6

-5.72

-1.39

-2.91

Nov

0.24

-2.18

1.12

0.64

-2.81

-3.65

-3.45

-2.95

Oct

-0.22

-6.25

-1.70

-4.34

0.90

-3.81

0.78

-1.06

Sept

0.28

-8.75

3.17

-9.06

2.36

-5.75

2.71

-0.01

Aug

1.39

-4.53

-0.66

-6.92

2.21

-3.69

-0.20

-4.15

Jul

-2.09

-4.49

-5.24

-7.36

-1.63

-9.87

0.58

-6.7

Jun

-0.84

-2.35

1.30

-1.88

-0.56

-8.24

-2.76

-7.28

May

0.27

-5.30

-0.71

-9.98

-0.94

-8.27

1.24

-6.91

Apr

-1.83

-5.64

-3.5

-6.98

-1.48

-7.28

0.45

-8.26

Mar

1.43

-6.72

-1.87

-5.76

-3.00

-4.66

-2.34

-11.15

Feb

-4.13

-5.23

1.41

-5.33

1.27

-1.41

-3.37

-5.11

Jan

3.91

-5.64

-0.38

-8.78

-0.34

-4.61

4.43

-2.64

86

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ADVERTISER FEATURE

Saint-Gobain tests HyGear’s Hy.REC® system Saint-Gobain Glass, one of the world leading glass production companies, is currently testing HyGear’s Hy.REC® system in its facility in Herzogenrath. The Hy.REC system is designed to recover the used hydrogen-nitrogen gas mixture so it can be reused in the glass production process.

Saint-Gobain is continuously seeking for innovative technologies to optimise the glass production process and improve the glass quality. One of these technologies is the Hy.REC® system, developed by HyGear. Saint-Gobain is testing the system in Herzogenrath on performance and reliability.

“It is great to work with such a leading company as Saint-Gobain”, says Mr. Niels Lanser, sales director at HyGear. “SaintGobain has provided us with valuable input during the design phase of the Hy.REC®.

Their feedback on the system performance is also of great relevance for the further improvement of the system”.

Advantages of gas recycling

The Hy.REC® system is developed to recover the gas mixtures from the tin bath in float glass production and metal industry. Currently, significant amounts of the hydrogen-nitrogen gas mixture are – in combination with pollutants – left at the exit of industrial processes and left unutilised. The Hy.REC® system can recover this used and polluted mixed gas atmosphere from the process in a very cost-effective way. By feeding the polluted gas mixture into HyGear’s Gas Recovery System, a significant fraction of the hydrogen and nitrogen can be recovered and reused as a new reductive gas mixture.

This reduces costs and improves the product quality due to the increased atmosphere refreshment rate.

and oxygen are removed from the main stream. The third gas recovery stage is the post-treatment module. Key part of the posttreatment is the Temperature Swing Adsorption (TSA) to dry the hydrogen-nitrogen stream. Optionally, the customer’s waste heat can be used for the regeneration phase to increase the energy efficiency even further.

About Saint-Gobain Glass

Saint-Gobain Glass is one of the world’s leading flat glass manufacturers with 30 float glass lines and 17 coating facilities. The company is involved in the world flat glass industry through the Innovative Materials division, which operations include the development, manufacture, and sale of flat glass and high performance materials.

Products of Saint-Gobain Glass offer high added value and are primarily used in residential housing, construction, and industrial Fig. 1 : Saint-Gobain flat glass production facility applications and combine energy efficiency, comfort and respect for the environment.

Among the glass products made by the division are safety glass, solar energy glass, low emissivity and self-cleaning glass. Energy efficiency and advanced product development are key topics on the company’s agenda. www.saint-gobain-glass.com

Fig. 2 : Molten float glass

About HyGear

HyGear supplies industrial hydrogen, nitrogen and oxygen gas in small bulk quantities.

By combining advanced on-site generation technologies with conventional gas distribution Other gas recovery systems methods, we offer the most cost-effective and HyGear is not the first company that offers a reliable gas supply for the glass industry. gas recovery system. The reason for the limited Lead product is the supply of cost-effective market penetration of the formerly launched hydrogen by installing on-site Hy.GEN® systems is the low internal rate of return, caused technology. The Hy.GEN® generates hydrogen by the high capital investment and high-energy Fig. 3 : Process and working principle of the advanced Hy.REC technology from natural gas by using proprietary Steam consumption. Since the economical viability of Methane Reforming technology. HyGear industrial gas recycling systems depends on the also supplies nitrogen and oxygen by on-site value of the recovered gas in relation to the energy consumption of PSA-technology. HyGear’s highly efficient on-site generators are the system, the Hy.REC®mix is designed to consume the lowest based on HyGear’s extensive experience in PSA gas separation possible electricity, which results in the highest economical rate technology and gas processing systems. of return. Key part of the integrated post-treatment module is the To further reduce costs, the Hy.REC® gas recycling technology advanced Temperature Swing Adsorption (TSA) with ultralow can be installed to recover the spent gases from the process. pressure drop to further reduce operational expenses.

The opportunities lie in the reduction of the operational costs of utilities and therefore fit well with the industry’s aim of energy Working principle and cost savings.

In the first section of the Hy.REC, dust and contaminants are www.hygear.nl removed from the gaseous mixture. In the second stage, sulphur

88

asianglass AG 16-2

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Import/export of glass (2015, volume and value) Product

Code

Export Volume (Kg)

Rolled glass

Import

Value (USD)

Volume (Kg)

Surplus

Value (USD)

70031200

18,286,600

8,605,161

2,543,097

10,235,912

-1,630,751

Ordinary flat glass

7004

117,923,521

129,070,757

25,062,238

633,596,240

-504,525,483

Float glass

7005

1,904,359,354

614,923,683

175,079,773

543,892,248

71,031,435

Coated glass

70051000

478,840,797

153,270,000

7,689,943

13,167,446

140,102,554

Colored glass

70052100

229,478,578

68,102,693

15,860,397

23,452,094

44,650,599

Bent, edge-worked etc 7003 & 7005

7006

348,168,716

609,698,149

66,689,431

840,497,163

-230,799,014

Safety glass

7007

1,989,614,930

2,294,698,849

22,806,739

323,122,232

1,971,576,617

Insulated glass

7008

99,328,532

213,377,072

3,129,599

16,250,856

197,126,216

Glass mirror

7009

888,698,831

1,815,278,213

6,244,054

237,773,138

1.577.505.075

Decorative glass*

7016

428,831,319

669,906,014

4,387,926

23,921,775

645,984,239

Export of glass by volume (Kg) Product Rolled glass

Code

2010

2011

2012

2013

2014

2015

70031200

67,542,600

43,485,906

41,848,400

39,241,790

30,887,478

18,286,600

Ordinary flat glass

7004

107,108,296

108,354,592

109,428,482

118,129,288

123,927,782

117,923,521

Float glass

7005

1,431,111,911 1,711,819,989 1,521,238,619 1,615,388,912 1,839,148,262 1,904,359,354

Coated glass

70051000

732,423,565

300,702,976

327,625,185

433,546,617

485,392,926

478,840,797

Colored glass

70052100

239,601,874

393,428,624

318,418,337

269,257,613

231,034,534

229,478,578

na

na

na

282,380,855

288,848,989

348,168,716

Bent, edge-worked etc 7003 & 7005

7006

Safety glass

7007

Insulated glass

7008

692,862,711

55,278,188

60,996,573

83,011,882

98,346,197

99,328,532

Glass mirror

7009

435,990,192

781,173,713

780,209,364

835,386,060

925,655,043

888,698,831

Decorative glass*

7016

65,012,880

488,470,744

461,795,753

459,464,536

450,978,059

428,831,319

51,388,253 1,217,731,569 1,322,989,769 1,551,503,753 1,785,841,572 1,989,614,930

Daily glassware/container output (tonnes)

Export delivery value of flat glass in 2015Q1-Q3 Month

www.asianglass.com

The month

Cumulative

Value (RMBâ&#x20AC;&#x2122;000)

Growth rate (%)

Value (RMBâ&#x20AC;&#x2122;000)

Growth rate (%)

Jan-Feb

-

-

442,391

-11.18

Jan-Mar

237,786

-21.92

680,116

-15.74

Jan-Apr

239,430

-30.06

927,327

-21.3

Jan-May

258,648

-25.97

1,183,009

-22.61

Jan-Jun

285,664

-30.17

1,471,814

-24.04

Jan-Jul

247,734

-31.03

1,719,267

-25.14

Jan-Aug

227,264

-31.98

1,946,520

-26.01

Jan-Sept

218,894

-32.5

2,167,966

-26.64

AG 16-2 asianglass

89

Anaylsis

Refractory Zone Coping with turbulent situations In the latest of his exclusive articles for Asian Glass, P.Carlo Ratto discusses a need for glassmakers to be willing to fully embrace the financial benefits of low-cost manufacture.

It is, again, time for me to provide an update on the general situation of worldwide fused cast refractory, while in the west glass market is balancing between regions recovering some traction and areas of persisting stagnation and as most BRICS are at least slowing the expansion rate.

Meanwhile, the progressive revamping of glass technology in emerging countries and the organic improvement of western design/engineering of furnaces lead to stretching of furnaces campaign life, so as to compensate the moderate growth of the overall glass market. As a result, the fused cast refractory market is not significantly increasing on a global basis.

Due to a number of reasons, different in various geopolitical areas, there is strong resistance in shutting down capacity, so the overall strong overcapacity is persisting and greatly contributing to keep low the profitability of the fused cast business. Under this scenario, we see Chinese players still expanding capacity in front of a very problematic market growth, struggling to recover some business profitability between rapidly deteriorating labor cost advantage and the need to

still offer a great deal of price reduction (against world level), having not adequately revamped the quality of products and services.

Western manufacturers are trying hard to stay profitable (since in the west this is a pre-requisite for survival) and, to do so, some is still investing in low-cost de-localizations while facing great difficulties to balance volume through shutting down existing capacity (that has lost profitability); other western players, having no capability to efficiently delocalize, are in front of a hardly deferring need of capacity reduction.

As a matter of facts, in spite of a not significantly growing fused cast refractory market, we observe the paradox of new plants going online, typically in low-cost areas, from purely low-cost manufacturers (independent Chinese) or in terms of delocalized plants of western manufacturers.

Glassmakers are therefore in front of the necessity of procuring fused cast refractories from “different” sources, following modification of manufacturing structure of traditional suppliers, and/or accessing new “exotic” sources, under financial incentive.

Invariably, when this happens, glassmakers are

Decisional process of a glassmaker

90

asianglass AG 16-2

P. Carlo Ratto facing the dilemma of understanding the level of risk associated to procuring critical refractories from new independent low-cost factories or companies, or to understand the level of quality/ reliability of goods produced by global players that are delocalizing production in a given new lowcost location.

In this second case, very often the query is in term of “how much this product is different from the original western-manufactured or from a previous delocalization that is now not anymore the preferred source?”; while the legitimate stance of the western manufacturer (supplier) will tend to be “no differences at all”, it is also perfectly reasonable that a glassmaker (customer) will like to directly check how the situation is in case of an independent low-cost source and also in case of a new delocalization of a major western company.

Now, as stated in different occasions, fused cast technology (should say technologies) is very different to a better known sinter refractory production, and the relevant know-how is much less diffused and available.

Typically, glassmakers do not have the knowledge requested to evaluate the level of technology managed by a specific manufacturer, and specifically to infer the degree of associated risk for a given user, when those refractories are installed in a specific application.

In order to fulfill this particular exigency, independent services are now available, in order to perform a complete technical/technological audit covering the whole range of fused cast refractory (AZS, Aluminas, HZFC, Chromealumina, AZSCr, Al-Mg spinel), produced under different technological platforms by a given player.

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Anaylsis

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Anaylsis

This process can include benchmarking a specific manufacturer/plant against world level technology or even against a specific manufacturer, thanks to a wide experience accumulated in this activity.

A technical/technological audit of a given fused cast refractory manufacturer can be finalized to different purposes and therefore different emphasis will be attributed to certain details; for example, when a company is audited in view of a JV or acquisition by a third party that has requested the audit, a lot of importance will be attached to aspects like efficacy and efficiency of the processes consequent to the managed technology (that will be the base for a financial evaluation), and to the existing margin of revamping (and the associated costs) in order to reduce the observed bottlenecks, in other words to evaluate the value of a potential acquisition or partnership.

Conversely, in the case we are hereby considering (that is evaluating the technical risk, for a customer, relevant to utilize a given source of fused cast refractories), the situation is different and the investigation will have to be focused on the products and services intrinsic quality and on the manufacturer’s quality assurance network; the first point will provide to the potential customer clear information about goods quality and therefore capability to provide the needed performance in the specific application (durability, cession of defects, safety), the second point will give the most needed information about how much a manufacturer is reliable in what can provide, how much a manufacturer is capable of detecting non conformity in the process and products, and his ability to amend anomalies and bring back the process to normality.

Due to peculiar manufacturing technology, there are specific pivotal points dictating if a process and products control can be operated by the manufacturer: the capability of deploying a “chemistry on line” SOP, for example, is paramount and a single condition necessary to maintain under control the chemical composition of the products. This point, in fact, that is not really critical for the manufacturing of other refractories like sinter bricks, is getting very difficult here, when the finished products are considerably inhomogeneous bodies, making it impractical determining the chemical composition of a given block by means of a direct analysis of it. A chain of internal inspections by weight and attributes is also necessary in order to detect product’s

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Process Capability and Market demand - situations non-conformities and to do so as early as possible so as to reduce the reaction time (and the cost of non conformity) and therefore inflict to customers a minimum disservice when a block needs to be replaced (re-produced).

Tracking developments Another minimal condition to be respected is, for a prospect supplier, to have in place an effective tracking system that, among other functions, will be capable of connecting each specific item (block) with its own manufacturing story (being therefore capable of properly handling items produced under non standard conditions), and to know in real time where any item is in the long manufacturing cycle at any given time. This is paramount to follow-up any specific order, to respect delivery time and therefore to offer a proper service to customers.

Quality of blocks produced is the result of the technology mastered and the technique, equipments, materials and know-how utilized to support the technology. The final quality of blocks sent to the final stage of production (that is the set-up of assemblies and customer inspection) must be accordant to the technology/technique and the result of process’ yield; overhauling this compatibility is also matter for the audit. While from the perspective of a customer the situation of a bad process yield (to obtain the specified quality level) could be a secondary issue and only a major concern for the manufacturer, it is to be stressed that when the level of quality scrap rate is higher than normal (for example, more than 12% in AZS typical mix production), then also the average quality level of the “acceptable” portion of products is appreciably reduced.

Inspecting pro-forma a significant sample of finished product (approved by all the internal quality system steps), using world-level

technical specifications, will provide direct evidence of the average quality level versus generally approved quality criteria. This result will have also to be perused in comparison with the process yield relevant to the sample under scrutiny, and the result will provide information relevant to the standard process capability of the audited manufacturer.

Evaluating the a.m. “standard process capability” of a given producer is also a complex but critical investigation, since in comparison with the expectation/needs of a potential customer, is going to provide information about the degree of expected customer satisfaction in front of a specific set of requirements; for example, should a glassmaker utilize deep-refiner furnace design requiring refiner palisade blocks of at least 2,000 mm height RC sidewalls, and should the process capability be unable to produce RC blocks over 1,800 mm height, then there is a conflict and, in the audit process, you must inform the committing glassmaker that this specific manufacturer does not, without process revamping, satisfy one important technical requirement. It is to be stressed that, typically for certain independent lowcost manufacturers, the producer itself does not completely know its own standard (and non-standard) process capabilities, so that it might be necessary to collect, peruse and elaborate raw data (when available), to estimate the most important process capability parameters.

Auditing a fused cast manufacturer is a complex exercise, and requires an enormous amount of product and process know how in order to evaluate and benchmark a given manufacturer. This process is becoming more and more a necessity for glassmakers willing to access the financial advantage of procuring from old and new low cost sources, but with a reasonable and acceptable ratio risks/benefits.

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Typical low cost alpha-beta alumina, showing light blue discoloration and surface contamination from moulding components”

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