Asian Glass AG19-1

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EURASIA GLASS 2019 ISTANBUL, TURKEY Inside:

Sri Lanka in focus Innovation in Uttar Pradesh IGU in ASEAN China: the Dragon returns

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news, views, analysis and much, much more!

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Contents: AG 19-1 Regulars

Features

4 Welcome

30 IGU in ASEAN

UK glass sector faces no-deal Brexit.

6 Headline News

Jahir Ahmed looks at how the insulated glass market across the South East Asian region has gathered momentum in the last few years and how continued technological developments, coupled with regional atmospheric needs, are driving up demand.

18 Global View

44 The innovators of Uttar Pradesh

Openings, closures and industry moves from across Asia.

Our eye on the international arena.

22 People and Places Movers and shakers, ups and downs.

25 Batch Raw material news and views.

Despite all its demographic and geographic advantages, there is something about the glass industry of Uttar Pradesh that makes it considerably less successful than many of its counterparts. Although investment continues to climb, it seems as if the State cannot shake off a “smalltime” tag, as Yogender Malik finds out…

52 Sri Lanka processors look forward

26 Refractory Zone

Rohan Gunasekera looks over the country’s rooftops and assesses how the constantly evolving skyline of all the towns and cities is becoming indicative of a rapidly expanding glass processing sector…

28 Comment & Analysis

58 Return of the Dragon…

Updates from the hot end

Firzobad: history with a modern challenge.

30 Your favourite magazine is now available at the App Store… download today to see your first sample issue!

Asian Glass: now for mobiles, ipads and androids

As 2019 gets into full swing, we look back in conjunction with the China Glass Network at what state the pressures of the previous 12 months have left the Chinese glass market in.

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Anaylsis 62 In Focus

Glass-glass modules are built to survive the toughest conditions and can deliver module lifetimes far exceeding the 20-30 years expected of glass-foil. The module concept is ideally positioned to catch the building bifacial wave, but only if quality concerns are addressed, warn some experts in the field.

66 Window

Analysis and insight into Brazil.

2

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AG19-1

SEE US AT: s the prospect of a no-deal Brexit looms large, there is a very real threat to the continued harmonious operation of the UK’s glass industry, and its interaction with Europe. Speaking in ISTAN BU L, TU RK EY January, the Glass and Glazing Federation highlighted some of the major concerns on the horizon.

Inside: The current free circulation of goods between the UK and Sri Lanka in focu s Innovation in Utt ar Pradesh EU will completely cease in a no-deal scenario and trade IGU in ASEAN China: the Dragon returns will be governed by WTO rules. Under this regime, GGF PLUS! news, views, ana lysis and much, muc h more! members who source materials or products from EU countries could be classed as importers and could be liable for extra costs responsibilities such as additional VAT and import duties. According to the Confederation of British Industry (CBI), EU exports to Britain could face a trade-weighted average tariff of around 5.7% the day after a no-deal Brexit. Goods going the other way would face tariffs of 4.3%.

In the case of a no-deal outcome, free movement from the EU’s 27 countries into the UK would end.

However it is very likely that even in the event of no Agreement, the UK authorities will continue to roll out their scheme to issue residence documents to EU citizens already in the UK. The UK would need to have new immigration arrangements in place to allow EU migrants to enter the country. In this situation, intracompany transfers across EU borders would be governed by the rules of each individual member state.

The glass and glazing sector currently rely on skilled overseas workers to fill the widening generational and skills gap, particularly in the case of installations. Most of these skilled workers come from within the EU, usually Eastern European countries. Eastern European migrant workers are hugely important for filling non-qualified support and semi-skilled roles (such as labourers) across the sector.

Due to the uncertain political and economic environment, these migrant workers are increasingly choosing to return home, exacerbating the existing skills shortage. This could have a negative impact on the domestic homes market, making it harder for ordinary consumers to find competent installers for new and replacement windows. The shortage could also impact the Government’s ambition to build one million more homes to help resolve the housing crisis.

On the positive side, the UK Government is in the process of introducing its own version of CPR (via statutory instrument) if a no-deal situation arises. This is expected to have the same requirements as the existing EU standards and will ensure: • Construction products already on the market can continue to circulate in the UK • Existing European harmonised standards will become UK ‘designated standards’ – meaning that immediately after Brexit day, both the UK and EU standards will be the same. Going forward, new UK standards will be decided by the Secretary of State • If a UK body has undertaken the third-party conformity assessment processes, as required by the UK ‘designated standard’, the manufacturer must add a new UK mark. Construction products which meet the harmonised European standard and have a ‘CE’ mark can continue to be sold in the UK without requiring re-testing or additional marking • During the time-limited period, where the product marking is added based on self-declaration, the manufacturer will be able to choose to use either the UK or CE mark (or both) • For products not fully covered by a designated standard, there will be an optional route available to enable products to be UK marked • GGF manufacturing members should note that new products which are assessed by a UKbased notified body will need to also be assessed by an EU-based body for them to be sold in the EU market.

As the clock ticks down, the fear grows and the insecurity continues….dare I say….Happy Reading?!

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HEADLINE NEWS ASIA CSG executives under investigation China Several former senior executives of Shenzhen-listed CSG Holding Co. Ltd., one of China’s leading manufacturers of industrial glass, have been placed under criminal investigation, two years after conglomerate Shenzhen Baoneng Investment Group Co. Ltd. took over control of the company, an exchange filing showed, underlining Baoneng’s ongoing fight against the former management team.

CSG Holding said that the former senior executives — including former Chairman Zeng Nan — have been accused of offenses such as breach of trust that have damaged the interests of the listed company, according to its January announcement.

Local police have taken criminal enforcement measures against the people involved.

The police investigation came after CSG Holding’s current management team, which Baoneng installed, alleged

that 171 million yuan ($25.33 million) had been transferred to a company controlled by Zeng and other former executives, multiple sources within and outside CSG Holding told Caixin. Only two of them have recently been investigated, they said.

Based in Shenzhen, CSG Holding was founded in 1984 and went public in 1992, making it one of the earliest listed companies in China, according to its website.

The company’s electronic glass products held more than 50% of the domestic market, it said in its 2018 semiannual report.

CSG Holding made headlines when Baoneng took control of the company in November 2016. As of the end of September 2016, Baoneng held a 25.72% stake in the company through three subsidiaries, including Foresea Life Insurance Co. Ltd. and Shenzhen Jushenghua Co. Ltd. After the takeover, the conflicts between the new personnel

sent by Baoneng and the thenmanagement team led by Zeng grew more and more heated. In November 2016, Zeng resigned from the company, along with several other executives.

Baoneng’s executives then took over CSG Holding’s management.

The turmoil didn’t stop with the old management team’s departure. In March, CSG Holding changed its auditor from PricewaterhouseCoopers to a local accountant firm in a bid to “ensure the independence and objectivity of the auditing work,” the company said in an exchange filing at the time. A former manager at CSG Holding told Caixin that the new management team started to review the financial records of former executives after they left.

While auditing CSG Holding’s 2017 annual report, the new auditor, Asia-Pacific (Group) Certified Public Accountants Co. Ltd., discovered that Zeng’s team might have transferred 170

Local auto glass improves profitability Pakistan At a time when foreign currency reserves of the country are standing at a critical point, the use of local auto parts in vehicle assembly is saving the outflow of millions of dollars from the national economy, however, weakening auto sales for the past few months are a cause for concern, said auto vendors. The vendors, who contributed over 60% of auto parts to locally manufactured cars, complained that they were looking for encouragement in the Auto Industry Development Policy (AIDP) 2016-21 as the use of local parts was beneficial for the consumers and the government alike because the

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impact of rupee depreciation and the global economic slowdown was minimised. At present, according to them, 400 vendors from across Pakistan provide auto parts worth more than Rs300 million every day. “This has not been possible without the transfer of technology from Japan; the domestic vendors have 45 different technical assistance agreements with Japanese companies,” a vendor told a group of journalists. Sales of cars and light commercial vehicles in the country are expected to reach around 260,000 units in the current financial year.

Annual installed capacity of the auto manufacturers is around 300,000 units. The vendors were of the view that true growth and benefits of technology transfer, job creation and value addition could be fully realised by providing incentives to the domestic auto parts manufacturers, besides the new players, but it had not been considered in the new policy.

Ahmed Glass Industries CEO Ejaz Alam said the parts they produced complied with the international standards as they were approved by Japanese headquarters of the domestic car manufacturing companies after thorough quality tests.

million yuan to a company that it controlled that was unrelated to the listed company. CSG Holding then reported the case to the local securities watchdog in Shenzhen, which referred the matter to the police, according to the company’s exchange filing.

Baoneng has been on an acquisition spree over the past few years. Its chairman, Yao Zhenhua, who ranked the 12th richest person in China in the 2018 Hurun Report, had for a time eyed a takeover of one of the country’s largest homebuilders, China Vanke Co. Ltd. In 2015, Baoneng set up asset management products through its subsidiaries to fund its hostile takeover bid of Vanke.

Although the bid failed, Baoneng still held a 25.4% stake in Vanke as of July 2016. However, it later began to offload its Vanke shares after running afoul of regulators cracking down on highly leveraged transactions.

News, views and analysis

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Crowd-fund route for auto glass user Malaysia AUTOMOTO Glass, a windscreen repair ser vice, is raising US$24,230 (RM100,000) in its first equity crowdfunding (ECF) campaign on ECF platform, Ata Plus.

The fundraising exercise is aimed at expanding its inexpensive mobile windscreen repair services across Malaysia and eventually the Asean region.

Automoto Glass offers customers quality services via highly-trained professionals equipped with the latest technology to perform mobile windscreen repairs so that a simple crack or minor chips on a car windscreen can be fixed in just 45 minutes or less, without compromising the condition of the original windscreen.

The company has an exclusive partnership with a company that produces windscreen repair kits, using a patent pending technology.

With over 13 million vehicles actively registered in Malaysia, it can be conservatively estimated that at any one time, approximately 5% of vehicles would have some issues with their windscreen, amounting to 700,000 repairable windscreens.

Approximately 15 million windscreens are replaced annually in the United States, amounting about 600 million pounds of glass and plastic filling up the landfills, a definite contributor to the pollution of the environment.

Currently, the windscreen replacement service is dominating the auto glass industry. Many auto glass workshops only provide windscreen replacement services due to the lack of skilled technicians and equipment for windscreen repair.

Additionally it is also due to motorists being unaware of the convenience and affordability of

repair services.

To address this, Automoto Glass is developing a mobile app to meet the increasing demand for windscreen repair and to scale up its business.

The mobile app will allow car owners to conveniently find a skilled technician when faced with windscreen problems.

Since its establishment, Automoto Glass has secured partnerships with over 10 auto repair workshops in the Klang Valley. The company also plans to partner insurance companies to offer a cost-efficient alternative for windscreen coverage.

“We are determined to make windscreen repair a viable alternative for car owners and insurance companies. We aim to be a dominant windscreen repair player in Malaysia and the region,” said Automoto Glass

founder and chief executive officer Raymond Tan (pic).

The company is now seeking funds for marketing, the launch of their mobile application,working capital and operations for the next three years.

“Not only does equity crowdfunding provide alternative funding, but it can also be a tool for small companies such as Automoto Glass to create brand visibility and awareness of solutions that also have greater societal benefits ” said Ata Plus director and co-founder Kyri Andreou.

“Equity crowdfunding is primarily aimed at greater financial inclusion, and as such we will continue to help smaller business, like Automoto Glass, have that opportunity to obtain funding from the crowd,” added Ata Plus director and co-founder Elain Lockman.

Saint Gobain float plant “open for business” India In January, glassmaker Saint Gobain opened its third float glass manufacturing plant at the World Glass Complex, Sriperumbudur, Chennai. The plant was built at a cost of Rs 1200 crore and will cater to both domestic and international markets. With this, the company's cumulative investment in the Glass Complex?at Sriperumbudur has crossed Rs 3,000 crore, the single largest investment destination of Saint Gobain globally. Since its entry into India in 1996, the company has invested about Rs 7,500 crore.

In 2018, the company had reported a net sales of over Rs 7000 crore. "India is one of the fastest growing markets for Saint Gobian and is a very profitable market. Indian sales account for close to 2 per cent of our global

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sales," said Pierre-Andre de Chalendar, Chairman and Chief Executive Officer, Saint Gobain group to Business Today. "However we have very low penetration in India since glass penetration in the country is low -- 1.65 kg per head compared to China which is 30 kg per head."

The company is planning to triple its sales revenue in next 10 years. "In last few years, the Indian market has been self funding itself as investments made here are funded from the profit we make here. The brand recall of SaintGobain in India is as good as it is in France. Indeed, we are as much an Indian company as we are French," Chalender said adding that the primary investment in India is for the local market and vast majority of the products the

company manufactures will be sold here . On an average, 15 per cent of overall products are being exported.

The company that started Indian operations in 1996 had recorded an average growth rate of about 19 per cent YoY till few years back. "Currently we are having a growth average of 10 per cent. The new facility adds around 400 new jobs, which takes the employee strength of the company to 6500," said B Santhanam, managing director, Saint-Gobain India. "The third float glass plant will be the largest in India in terms of capacity and will manufacture a wide range of complex products that cater to the needs of sustainable habitats and affordable luxury," Santhanam?added. The plant,

according to the company, is also highly energy efficient and generates 1.2 MW of power from waste heat of the furnace and 3.5 MW from rooftop solar facility.

"This will meet more than 80 per cent of energy for the plant," said Santhanam.

The company also opened its second advanced magnetoron coater facility and glass solutions' lines. With this, the world glass complex will have a capacity to manufacture 140 million square ft of high performance energy efficient glass catering to businesses across Africa, MiddleEast and ASEAN region.

The company also had signed an MoU worth Rs 720 crore with Tamil Nadu government in the recently concluded global investors meet.

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News

Gauzy unveils new film facility plans Israel/Germany Research Frontiers Inc. and Israelbased material science company Gauzy Ltd have announced Gauzy's second production facility in Stuttgart, Germany to produce SPD-Smart light control film for the entire SPD-SmartGlass industry, including automotive and architectural applications. To commemorate this new factory, Research Frontiers CEO Joseph M. Harary, and Gauzy CEO Eyal Peso will ring the opening bell today at the Nasdaq Market Site in Times Square. Also joining the two executives on the stage to ring the opening bell will be Steven M. Slovak to commemorate his recent promotion to the position of Vice President and Chief Technology Officer of Research Frontiers.

"Our new manufacturing facility will be strategically located in Stuttgart, Germany near our key automotive customers," noted Eyal Peso, CEO of Gauzy. "We have already completed five months of design work and have acquired the production site. We are investing millions of euros to build this state-of-the-art facility with specially-designed coating and curing areas that will give Gauzy the capacity to coat over one million square meters of SPD film per year."

Gauzy expects the new facility to be in production within the next six months. The company will host a special invitation-only event for industry professionals, key customers, and media later this year to launch the new production site. It can coat SPD light-control film as wide as 1.8 meters.

This follows the inauguration of Gauzy's previously announced SPD film production line in Tel Aviv this past October. That facility has the capacity to produce up to 364 thousand square meters of film per year per shift.

SPD-Smart light control film, invented and patented by Research Frontiers, is a key component in SPD-SmartGlass products. This film allows users to instantly, precisely and uniformly control the shading of glass or plastic products, either manually or automatically. Products using Research Frontiers' smart glass technology are being used in tens

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of thousands of cars, aircraft, yachts, trains, homes, offices, museums and other buildings.

Joseph M. Harary, President of Research Frontiers noted: "Gauzy is not only a key licensee of ours, but they are also a strategic investor in Research Frontiers.

Gauzy has consistently shown their ability through innovation and investment to bring the best quality products to the smart glass industry. Their new SPD film production line will have special in-line production capabilities that do not currently exist anywhere in our industry. These capabilities address beautifully the needs of our licensees and their customers in the automotive, train, aircraft, boat and architectural industries."

The markets for SPD-Smart film are already well-established.

Research Frontiers has licensed over 40 chemical, film, and glass companies which are selling products for the automotive, aircraft, marine, train, museum, train and consumer electronics industries. Gauzy's established and growing network of over 55 glass fabricators worldwide brings additional synergies, infrastructure, and growth opportunities to the smart glass industry.

Research Frontiers patented SPD-SmartGlass technology is the same best-selling smart window technology that can be found on various car models from Daimler. The MAGIC SKY CONTROL feature, which is now in use on tens of thousands of Mercedes-Benz SLs, SLC/SLKs, Maybach and S-Class models around the world, uses patented SPD-SmartGlass technology developed by Research Frontiers to turn the roof transparent by electrically aligning tiny particles in a thin film within the glass. With the touch of a button, drivers and passengers can instantly change the tint of their roof to help keep out harsh sunlight and heat, and create an open-air feeling even when the sunroof is closed. Glass or plastic using Research Frontiers' patented SPD-SmartGlass technology effectively blocks UV and infrared rays in both clear and darkly tinted modes,

helping keep the cabin cooler, and protecting passengers and interiors while also enhancing security inside the vehicle.

These benefits become even more important when a car uses large surface areas of glass, especially in warm climates.

Some of the other benefits of SPD-SmartGlass include significant heat reduction inside the vehicle (by up to 18ºF/10ºC), UV protection, glare control, reduced noise and reduced fuel consumption. Independent calculations also show that use of SPD-SmartGlass can reduce CO2 emissions by four grams per kilometer, and increase the driving range of electric vehicles by approximately 5.5 percent.

Shortly after its introduction into serial production in the automotive industry, SPDSmartGlass has become standard equipment on many different aircraft, and is also used in residential and commercial architectural applications, in trains, yachts and other marine vehicles, in display applications, and to protect light-sensitive artwork and documents in major museums around the world.

Gauzy is currently focused on LCG® (Light Control Glass) technology, including Liquid Crystal formulations and SPDSmartGlass emulsions. The company has a dedicated R&D team that focuses on each technology, multiple laboratories, and an on-site production line with custom machinery for high quality products with on time delivery.

Through strategic partnerships with certified partners, Gauzy's distribution network ranges over 40 countries. Gauzy's technology offers diverse applications to the glass industry including solar/energy control, shading, privacy, and transparent displays. Gauzy LCG® is featured in notable projects worldwide, including automotive collaborations with leading OEMs and Tier 1 suppliers, hotels, corporate offices, luxury residences, retail chains and consumer electronics.

Vendanta sees future in glass business India Undeterred by the Tuticorin crisis in Tamil Nadu or the mining ban in Goa, Vendanta’s top boss Anil Agarwal is marching ahead with a Rs 60,000 crore CapEx plan for India. That includes a brand new business for Vedanta in India— an integrated plant in Nagpur to manufacture glass for laptops, smartphones and TVs entailing an investment of nearly $4-5 billion.

Anil Agarwal decided to skip the World Economic Forum’s annual meeting in Davos this year to be a part of the delegation accompanying the South African president.

In a recent Interview with local media, Vedanta Chairman Anil Agarwal talked about Vedanta's future business plans and company's plan to enter the glass industry. Agarwal revealed that Vedanta is talking about setting up a complete glass plant in Nagpur for TVs, computers and cell phones.

Agarwal also said that the group is looking to invest Rs 55,000 to Rs 60,000 crore in India in three years. He further said, "I can promise you no oil will be exported but people want the door to open to allow them. That is what we are looking at. We are producing 2,50,000 barrels, 26% of oil production in the country.

We are going to produce 50% and I have a vision to produce a million barrels."

He also talked about the plant of entering glass business. Agarwal said, "In India electronic is very important. We produce glass in Japan, Korea and Taiwan. We had a talk whether we can set up a complete glass plant in Nagpur for TVs, computers and cell phones.

It is a high-class technology and there is no raw material. It is silica and hydrogen. It is a large project and we need a lot of technology inbuilt. If this project comes up, at least 50 companies of the world -- Taiwanese and Japanese companies -- will come and open their shop here."

Talking about the company's highest ever dividend two years ago, Agarwal said that Vedanta is very governance-oriented and that they always do tax planning.

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News

Piramal hit by rising fuel prices Sri Lanka Piramal Glass Ceylon PLC reported its nine month ended results of December 31, 2018 with a turnover of Rs. 5,485 Million & PAT of 154 Million but the PAT (profit after tax) for the nine months was down to Rs. 154 Million against Rs. 251 Million, a year earlier.

The turnover for nine months at Rs. 5,485 Million showed an 8% growth against the previous year sale of Rs. 5,067 Million.

Export sales grew by 31% from Rs. 1,627 Million to 2,123 Million whilst a drop of 3% was seen in the domestic market from Rs. 3,440 Million in F18 to Rs. 3,362Million in F19.

The third quarter ending December 31, 2018, has always been a very positive quarter for domestic sale each year due to the festival season. Yet these positive sentiments were not seen this year especially due to the unstable political climate in the country and the uncertainty

towards policies, a company news release said.

The Domestic sale of F19 Q3 was Rs. 1,226 Million against Rs. 1,256 Million of F18 Q3 which showed a drop of 3%. Food, Beverage & Liquor segments continued to show a decline during the quarter as well as for the nine-month period when compared with the similar periods of the previous financial year, it added.

During the quarter export sale was stable at Rs. 733 Million as against Rs. 729 Million of previous year similar period.

For the nine months ended December 31, 2019 the gross profit margin has decreased from 21% to 16%.

"The gross profit during the period under review was severely impacted by the fuel price increase to the extent of 35% in LPG & 15% in Furnace oil which in turn has a directly impacted the prices of raw material, packing

material & transportation costs, the release said.

"We regret to note that the relevant authorities have reduced the prices of petrol and diesel but have not addressed the price of furnace oil price in spite of drastic reduction of international crude oil prices. Our appeals to the authorities has gone unheard, heavily impacting the company profitability and sustainability of exports," Piramal said.

"It is very concerning to note the mixed approaches of the authorities towards exports.

Much focus is made on exports, by encouraging business to promote their products, yet the government does not create a conducive environment by creating a level playing field.

Whilst all neighboring countries have linked the furnace oil price to the global crude oil rates, we regret to note that we in Sri Lanka are yet to implement same."

The release said the company

is continuously developing new bottle designs & markets for exports and accordingly investing in high tech infrastructure.

"Our efforts have resulted to increased presence in the developed markets such as USA, Canada, Australia etc. Current investment in infrastructure is to the tune of Rs. 1.35 Billion which is mainly to cater international demand."

The government decisions to increase certain levies & taxes has impacted in the final products becoming more expensive. This has resulted in the consumer shifting towards cheaper and illicit products. This turn of events has impacted several manufacturing industries including packaging. Thus we feel this decision has neither benefited the industry nor added any additional revenue to the government. If this continues, domestic industry would be in trouble, Piramal said.

Xinyi extends Ontario search China/Canada A Chinese-based glass manufacturing company is considering Amherstburg as a possible location for its Ontario production plant.

Xinyi Glass Canada is in the midst of a protracted location search for an anticipated $450-million plant that would employ 400 workers.

Details emerged in January in the media that Stratford, London, Welland and Amherstburg were in the running.

“I can confirm that WEEDC has met with the company and the Ontario Investment Office,” Stephen MacKenzie, CEO of the Windsor-Essex Economic Development Corporation, said in an email Monday. “I can make no further comment at this time.”

Xinyi supplies glass to over 100 countries for automotive, solar and construction purposes. The company was founded in 1988 and has facilities in Germany and Japan. The company’s North

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American headquarters are i n Markham.

A story appeared in the London Free Press on Jan. 4 and detailed the company’s struggle to find a suitable location for the approximately 186,000-squaremetre plant.

The Free Press stated Xinyi would use more than 1.2 million litres of water daily, require a tremendous amount of energy and need to build a 100-metre smokestack.

Amherstburg Mayor Aldo DiCarlo could say little about the opportunity.

“There isn’t really anything I can say other than to confirm we were a consideration for a location,” DiCarlo said in an email.

In a recent interview, DiCarlo said often a private developer will request secrecy during the negotiation process.

“If a company or developer is looking to do something and wants to do it privately,

you either agree or you give up the opportunity,” DiCarlo said.

“This isn’t the first development opportunity we’ve had over the last four years. We’ve had two or three others where I’ve been personally involved. If this doesn’t work out, I have faith that more opportunities will come along.”

DiCarlo would like to see the plant locate on the site of the former Honeywell plant.

“It’s a big industrial property, not something that’s easily sold,” he said.

The Free Press said the community of Guelph-Eramosa voted in July not to approve a Xinyi plant there over concerns about water consumption.

“Glass manufacturing requires a lot of water for production purposes and the groundwater in the Guelph/Eramosa area is not as abundant as in, say, Windsor or Essex county,” said Michael Batu, a professor in economic development at the University of

Windsor. “I was not surprised when the municipal government in Guelph denied Xinyi the permit to set up a manufacturing facility there. It’s all about water.

What happened in Guelph is a story where environmental conservation prevailed over the prospects of having 400 or so manufacturing jobs.”

Xinyi committed in 2017 to opening its first North American facility in Ontario.

DiCarlo was surprised to read details about the company’s search.

“Usually with a private business, no one ever hears about it unless it comes to fruition,” he said. “We’re doing our darndest to respect the wishes of the company and we can only hope now we are still in the running. We are available for any questions.”

Xinyi’s Ontario plant would manufacture float glass used by the building sector.

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News

Glass to be considered a “mandatory” product Philippines Trade and Industry Secretary Ramon M. Lopez has hinted of a possible return of glass in the list of mandatory product standards as he vowed to safeguard the growth of domestic manufacturing.

“We are also reviewing the inclusion of [flat] glass in the mandatory listing,” Lopez said at the Manufacturing Summit 2018 where he urged domestic industries to expand capacities to meet growing demand.

The 2-day manufacturing summit gathered stakeholders from government, industry and academe to discuss the state if the manufacturing sector, consider ways to maximize opportunities and address current challenges faced by the country’s industries.

Once included, all glass, whether imported or locally manufactured, will be subject to mandatory standards for safety and quality.

Lopez said the need to expand and boost capacities of local industries such as steel and cement because of the huge local demand, which insufficient local supply is being augmented by imports.

In his speech, Lopez cited the manufacturing sector’s contribution to the resurgence of the Philippine economy, which has been growing an annual 6.4 percent from 2010-2017.

A key driver of this growth is our manufacturing sector, which grew at an average quarterly growth rate of 7.6 percent in the same period.

In the first three quarters of 2018, the country’s GDP still grew above at 6.3 keeping the Philippines among the top economies in the region in recent years.

With the formulation and implementation of policies and

programs that support industry development, he expressed confidence of sustained economic growth.

It could be recalled that the domestic flat glass industry has urged government to place flat glass under the mandatory product standard to stem the influx of substandard imports which have managed to penetrate the local construction sector and posing dangers to people and environment.

Pioneer Float Glass Manufacturing Inc. (PFGMI), formerly AGC Flat Glass Philippines, Inc. (AGPH) and one of the founding members of Flat Glass Alliance of the Philippines, Inc. (FGAPI), has already sought an audience with Lopez to discuss their situation.

In its letter to Lopez, PFGMI Executive Vice-President Nonie B. Galpa said the industry

association would like to directly express their intention to address public safety and risk reduction on glass and glazing materials through specific regulations.

Galpa said the industry would like to share their recommendation to the DTI Secretary “better and safer glass, glazing and its related applications anchored on the existing safety and quality requirements provided for in the Philippine National Standard No. 193 Series of 2005, as amended.”

Jesus Arranza, chairman of the Federation of Philippine Industries, said they are endorsing the industry association’s position to place the float glass under mandatory standards.

Arranza stressed that placing flat glass under mandatory standards can help stop the importation of this substandard product.

Schott unveils “substantial” investment China/India SCHOTT AG has announced a successful fiscal year 2017/2018 (October 1, 2017, to September 30, 2018), as all its key financial figures continued to develop positively or remained at the good level of the previous year. Globally, a record net profit of EUR 208 million (approximately INR 1687 crores) was achieved, which resulted in a return on sales of 13%. Important impetus was provided to achieve future growth, with special focus on Asian markets such as India and China.

(Asia represented a 25% share in the group’s global market.)

“We are very satisfied with the past fiscal year. Despite unfavorable currency influences, we achieved the targets we had set for ourselves, especially in terms of profitability,” emphasized Dr. Frank Heinricht, Chairman of the Board of Management, at the annual results press conference.

India alone saw sales of approximately INR 341 crores – an increase of 32.6% which converted into 26.2% after currency effects. Key growth driver

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segments for India were SCHOTT’s Tubing, Pharma-Packaging and Flat Glass for Cooking.

Murali Viswanathan, Managing Director SCHOTT India, shared his views on the growth of the Tubing and pharma packaging segment, “According to a government owned report, the Indian pharma industry is expected to grow over 15% till 2020, to outperform the global pharma industry, which is set to grow at an annual rate of 5%. Responsible pharmaceutical companies as well as the end users are increasingly emphasizing on the need of highquality packaging that ensures drug safety. This, clubbed with the conducive environment for manufacturing industry enhanced via ‘Make in India’, has been a driving factor for our exemplary growth.”

Next to organic growth, SCHOTT also plans to further enhance its offerings through focused, strategic acquisitions.

Seven M&A transactions took place in the past fiscal year, with a strong focus in the fields of big

data and artificial intelligence.

This expansion of the innovation pipeline also led to introduction of unprecedented 100% inspection systems in SCHOTT’s plant in Jambusar, Gujarat.

The largest foreign investment was the expansion of production capacity for pharmaceutical packaging at the St. Gallen site in Switzerland. One of key offerings from this plant, the syriQ® BioPure prefillable staked-needle syringe (PFS) was introduced in the Indian market last month.

Looking ahead, the company will invest around EUR 300 million in property, plant and equipment. Apart from expanding production capacities in Europe, the investment focus will remain on expanding the existing Indian plant and the construction of a new plant in China.

One of most growing division for SCHOTT Group in India is its tubing division, which completed 20 years of India operations last year. Its VP- Sales and Marketing, Sundeep Prabhu stated, “SCHOTT intends to continue its course of

sustainable, profitable growth in the current fiscal year. The new tank facility being set up in Jambusar is expected to be complete by 2020 and will increase our production capacity by an additional 50%. This will be help us to address the expanding client demands for our high-quality offerings in India as well as other foreign markets.”

The planned growth will be achieved with both proven and new products. “SCHOTT offers key components for global megatrends such as health care, mobility and energy. Our broad portfolio opens up good prospects for the current fiscal year and beyond,” said CEO Dr. Heinricht.

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MCGI undertakes furnace investment Syria Syrian container glassmaker Modern Company for Glass Industries (MCGI) has invested in a new furnace and equipment.

The 145-ton furnace is due for commissioning at the end of April and will increase the glassmaker’s capacity to 255 tons per day.

The investment also includes two new complete production lines, palletizing solutions and latest technology inspection machines to enhance the plant’s production facility.

The glassmaker is located in the Hasyaa Industrial Zone near the city of Homs, Syria.

The glassmaker continuously produced glass despite the horrific conflict in the country in previous years.

MCGI chairman Mr.Aiman Raslan said the glassmaker never stopped production despite the conflict.

“Not once did we consider stopping production. It has been very tough, particularly about three or four years ago, but we

are all very passionate about our glassmaking.”

Mr Raslan said that the investment will see MCGI reduce its production costs.

He believes the expansion will also allow the company to meet its clients’ high demands and keep them happy with prices and quality of glass packaging containers with various volumes in green, amber and transparent colour.

Its products include olive oil & beverage bottles, food jars and

medicine bottles.

Syria and consequently MCGI has a strategic location allowing it to export final products to its clients easily and smoothly.

MCGI’s clients are located in the Middle East, North Africa, Southern European countries and the Gulf Region.

Mr Raslan believes that the company will continue to be a regional leader in glass packaging especially now that the border between Syria and Jordan has recently reopened.

Plans for domestic auto glass Uzbekistan Uzavtosanoat, the country’s leading car manufacturer, intends to reduce imports of automotive components by 10 percent this year, according to the company.

To achieve this, a special roadmap has been developed and approved by the government.

One of the main tasks in this direction is the maximum involvement of local entrepreneurs in mastering the production of necessar y details.

“When the Asaka automobile

plant started its activity, there were only four local enterprises operating in the countr y that supplied 12 types of components for the plant. Today there are more than 100 local suppliers, and the number of components produced by them exceeds 2,500,” the company said.

“As a result of the first months of the year, we have already managed to reduce the import of components by 4.5 percent. It is important to understand that this is a difficult job, there are many nuances.

Now we are negotiating with “Uzstroymaterialy” to develop the production of flat glass in the countr y, which is completely imported from Russia. Uzavtosanoat Joint Stock Company produces light vehicles and commercial techniques in Central Asia.

The passenger car production in Uzbekistan amounted to 64,190 units in Januar y-May 2018, thus showing an increase of 22.4 percent compared to the same period in 2017 Car industr y occupies

one of the leading places in the economy of Uzbekistan.

A significant number of the countr y's population is employed in this sector of industr y.

The vast majority of automotive enterprises in Uzbekistan are joint ventures with foreign partners. This shows that the countr y is successfully working to create a favorable investment climate.

French companies are also rumoured to be looking at investing in specialist autoglass facilities in the countr y.

Solar glass duty sought against Malaysia India The government may impose anti-dumping duty of $114.58 per tonne on tempered solar glass imports to provide a level playing field to domestic manufacturers.

The Directorate General of Trade Remedies (DGTR), part of India’s Ministry of Commerce & Industry, recommended the duty on ‘textured, tempered – coated or uncoated – solar glass’ imported from Malaysia after Borosil Glass, the only domestic producer of solar glass, filed an application with the government body for the imposition of anti-dumping duty.

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In 2017, tempered glass from China attracted an antidumping duty in the range of $64.04-136.21 per metric tonne, after a similar petition was filed by Borosil.

Solar glass is a component in PV panels and solar thermal applications.

“The authority recommends imposition of definitive antidumping duty on the [solar glass] imports [from Malaysia] for five years,” the DGTR said in a notification after an investigation.

The final decision to impose the duty will be taken by the

Finance Ministry.

The DGTR, on the basis of evidence submitted by Borosil, investigated to determine the impact of alleged dumping of Malaysian solar glass, and to recommend anti-dumping duty to remove the alleged injury to domestic manufacturers.

The DGTR found solar glass produced in India was comparable to that imported from Malaysia in terms of physical characteristics; production technology and manufacturing process; functions and uses; product specifications; distribution;

and marketing. The two could be substituted technically and commercially, concluded investigators.

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New processed glass unit commissioned Oman Al Tasnim Group has become the first company in the Sultanate to indigenously process glass on a massive scale at its premises in Misfah. On January 23, 2019, renowned and prominent dignitaries, industry leaders, entrepreneurs, customers and well-wishers from across the Sultanate gathered at the Crowne Plaza Muscat, Al Qurum, to mark the launch of “first in Oman, glass processing unit with jumbo size full convection tempering line”.

This unit has been certified by all the leading glass manufacturers such as Emirates Glass, Guardian Glass, Pilkington Northern America & Saint Gobain Glass. Dedicated and independent function lines such as glass tempering, insulated glass, cutting line with autoloader, edge-polishing machines and others have been put in place to achieve international standards and the best quality output.

Devaki Khimji, Executive Director, Al Tasnim Group, said, “We chose to construct the unit in Misfah, as the Group is committed to the Sultanate’s In-Country Value (ICV) initiative. The venture into glass processing will contribute to contemporary architecture in Oman. The Group is passionate about making innovative inroads into world class technology through exciting opportunities like this.”

The evening also witnessed the launch of another venture by Al Tasnim Group, “Tquall”. The exclusive and high-profile event brought together Basam Adappa, Managing Director, Consolidated Contractors Co Oman, along with the management of the Al Tasnim Group, Devaki Khimji; Dhiren Chaitanya Khimji, CEO, Group Corporate Services; Mohit Chaitanya Khimji, CEO, Group Divisions; and Farrokh Masani, Director Operations &

Procurement, for the launch of the product manufactured at the Group's unit.

“This day would be added to my list of the most memorable and cherished days of my career.

Building Finishes Division is a conglomerate of various subdivisions which include marble and stones, GRC/GRP/GRG, carpentry and joinery, aluminium fabrication, steel fabrication, landscaping and irrigation, precast concrete, and adding another vertical today with the official launch of the glass processing facility in Misfah,” said, SK Borse, Director Building Finishes.

Shahji Kumar, Divisional Manager, said: “The next generation technology of glass processing has been sourced from the leaders in the industry such as Bavelloni, Italy; Glaston, Finland; and Lisec, Austria. This newest venture aims to fulfil the

local industrial requirements that previously had to be imported from other countries. The unit structure has the capacity to engineer tailormade applications to cater to the requirements of valued clientele across the world.”

The evening featured four presentations from industry experts as well. Representatives from various industry leaders such as APT, Glaston, Lisec and Saint Gobain travelled from various parts of the world to provide insights into the latest technologies, which have been implemented at the state-of-theart glass processing facility.

“Al Tasnim’s Glass Processing Division has literally broken the glass ceiling by becoming the first in the Sultanate to indigenously process glass on a massive scale.” said Krishna Prasad Shenoy, Manager, Glass Manufacturing Unit.

GPD2019 Open for Business Finland The Organizing Committee is currently building up the program for the 18th Glass Performance Days June 26-29.2019 in Finland.

A record number of 180 proposed abstracts have been received.

This is up some 30 percent from the previous conference in 2017. Future trends, R & D focus, new product innovations and applications such as smart glass and thin glass applications are at the focus of attention. Abstracts approved by the Program Committee will be posted on the GPD web page www.gpd.fi within the next few weeks.

The Organizing Committee is currently building up the program for the 18th Glass Performance Days June 26-29.2019 in Finland.

The organizers have received a record number of abstracts totaling 180 and up some 30 per cent from the previous conference. In total the number of abstracts and workshops including the special high-rise seminar reaches 220230. The high-rise event will be arranged in conjunction with the

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Aalto University in Helsinki. Future trends, R & D focus, new product innovations and applications such as smart glass and thin glass applications are at the focus of attention. The concepts of Smart Buildings and Smart Cities invite exciting new contributions and visions from glass developers and providers.

The Final Program will be put together and ready for publication by early March 2019. Abstracts approved by the Program Committee will be posted on the GPD web page www.gpd.fi within the next few weeks.

The 18th GPD Conference will continue in its world-leading practices and spectacular new format. The successful concept of 2017 brought sessions together in one arena with audiovisual points of focus and “no-closed-doors” policies. This format was highly appreciated by participants and will continue.

Easy transfer between sessions, one venue and a compact program support an entirely

new type of togetherness and involvement. As Conference Chairman Jorma Vitkala puts it: - The engaging format received very favorable feedback in 2017.

It prevents normal conference or exhibition practices of taking time off for side activities.

Such deviations would be time badly spent at a summit like this anyway. After all, this is the leading conference in its field and it runs an intense but effective program saving on executive time and travel expenses, Vitkala says. It is a hub and a melting point for the global glass industry that anyone who is anybody in the business just cannot afford to miss.

With the benefit of experience from 17 past GPD Conferences Chairman Jorma Vitkala offers participants some special pointers: - Early registration opens opportunities for first class accommodation and savings in travelling expenses at this summit for the world´s foremost glass

experts. Much of the Conference benefit is derived in personal contacts and interaction between formal sessions. Creating the right prerequisites for this may be the best the Conference can provide. We have seen that our high level decision makers really want to make the best out of this unique opportunity to meet their peers and we urge you to do the same. Perhaps the finest contribution of the GPD is its dedication to information sharing within the industry and through the professional media.

Speeches, reports and papers are freely available and thus accessible for all who have an interest in promoting the global glass industry.

For additional information, contact: Jorma Vitkala, GPD Chairman Phone +359 10 500 6216 Mobile +358 40 553 2042 E-mail: jorma.vitkala@gpd web site: http://www.gpd.fi

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Global View

Glass industry grinding to a halt?

KENYA The blazing, churning automatic machines inside Kenya’s oldest glass manufacturing company could grind to a halt and with it hundreds of jobs lost.

This is attributed to unfavourable business environment that has exposed Kenya’s only two glass manufacturers, Milly Glass Works and Consol Glass Kenya, to stiff at times unfair - competition from foreign firms.

The two are among only three glass manufacturing companies in East Africa, the third being Kioo Limited in Tanzania.

Companies that use glass for packaging are bypassing the local manufacturers and sourcing from other countries, thus forcing the local firms to find market elsewhere. Most of the imports are from Egypt.

Between August and December last year, 499 40-foot containers with empty bottles entered the country through Mombasa port.

Most of it was imported by Kenya’s largest bottlers, Coca Cola Company - through Almasi, Equator and Nairobi Bottlers - and East African Breweries through UDV (Kenya) Limited.

Between July and December last

year, the two companies imported 288 40-foot containers from Misr Glass Manufacturing Company, an Egyptian firm.

Close to three quarters of the total imports into Kenya were actually from Misr Glass with some containers being brought in by other spirit packers such as Patialla and Crywan.

While local manufacturers do not blame firms for bypassing their products, they say the move is driving them out of business. They argue that they have the capacity and have been supplying the companies for years.

Milly Glass Managing Director Mohamed Rashid says one of the main reasons why local bottlers are going for foreign bottles is the high cost of doing business.

“Most of these industries are going outside the country because with rising cost of production, prices have to increase to cover overheads,” he says.

For the past 18 months, Mr Rashid says, Coca Cola, which was a regular customer, has not bought a single bottle from the company.

It must not be lost that the cost of production in Egypt is lower mainly

because of cheaper energy costs and direct government subsidies given to the glass manufacturers.

The Oxford Business Group reports that in 2016, the Egyptian government announced a fouryear, five-pillar strategy to help transition the country into a major regional industrial centre and export hub.

“The strategy sets specific targets to support this, including increasing the annual industrial growth rate to eight per cent, the industrial contribution to GDP to 21 per cent and non-oil exports by an annual rate of 10 per cent through to 2020,” says the report.

Local companies also imported bottles from Pragati Glass Gulf LLC and Al Zain both of Oman.

“We produce most glass products used in Kenya but now we do not have the market which makes it untenable and if factors do not change then we shall have to make a decision,” says Rashid.

The sentiments have been echoed by Consol Managing Director Joe Mureithi, who argues that the glass manufacturers are facing an uncertain future.

“All we ask for is for the Government to protect the

British Glass fears “no deal” Brexit UNITED KINGDOM British Glass, the UK glass manufacturing industry’s trade body, has echoed other established heavy industries and called on government to ensure stability for its members in the event of a no-deal Brexit.

CEO Dave Dalton said: “Alongside iron, steel, chemicals, cement and ceramics, glass manufacturing is an important pillar of the UK economy. It provides food and drinks containers, glazing for housing, offices, and motor vehicles, and glass fibre for windturbines and electronic circuitry.

These are all materials that our society is built upon, as well as important elements of hi-tech sectors like aerospace, biomedical and defence.

“Over 6,000 jobs directly in the manufacture of glass and more

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than 100,000 more in the supply chain, are dependent on a thriving glass manufacturing sector, and uncertainty over investment is a threat the government needs to address quickly.

“Many of our major plants have headquarters in the EU or elsewhere in the world and stability is key to group investment being made in the UK. Uncertainty threatens that stability and so starves investment.

“British Glass maintains good relationships in Westminster and Whitehall and will continue to monitor the situation, advising government and our members in manufacturing of the evolving situation.

“Parliament must now commit to work in these extremely challenging times to ensure the

maintenance and growth of our foundation industries, including glass, to foster a higher and more visible degree of certainty and so stimulate overseas investment in UK manufacturing.”

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manufacturing industry so that local companies that use glass can buy from local producers,” says Mr Mureithi.

If glass manufacturers close down, the ripple effect will be felt far and wide, first among them being job losses.

Milly Glass employs 550 workers with suppliers of raw materials to the factory including Kenya Power, Tata Magadi Soda Company, fuel and liquified gas companies. Local firms have stock of up to 8months.

Alongside this would be loss of tax revenue running into millions of shillings.

Rashid says the solution is simple. “President Uhuru Kenyatta has named manufacturing as one of the key pillars of his Big Four Agenda; reducing the cost of doing business is one sure way of achieving this agenda.”

He says over the past four years, the cost of electricity has risen by 45 per cent while costs of fuel and liquified gas have also risen by 45 per cent and 30 per cent respectively.

NEWS IN BRIEF Fives has secured an order with a US container glassmaker for a complete forehearth system.

The glassmaker is based on the east coast and is a producer of soda lime glass for the container market.

The system will be standard BH-F technology, known to be reliable, energy efficient, and that produces high standard quality glass. The works should take place this summer, the benefits of this technology is the reliability of the proven design, that fits the high glass homogeneity requirements of the customer, with a good energy efficiency.

It is the first time Fives has worked with the customer.

Fives will manage the Design, Engineering, Procurement, Supervision of Construction and Commissioning of the forehearth system. The work will take place this summer.

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Glaston to acquire Bystronic glass WORLD Glaston Corporation has signed an agreement to acquire the Bystronic glass Group. The globally operating high-end machinery, systems and services provider for the processing of flat glass is currently owned by Swiss industrial holding company Conzzeta AG. Bystronic glass has a comprehensive range of products, highly complementary to Glaston’s, for the Architectural, Automotive and Display markets.

Bystronic glass has a strong brand recognition based on 50+ years of industry expertise and is a market leader with an unrivalled reputation for innovation and quality.

Technology frontrunner Glaston provides glass processing technologies and services for the architectural, solar, appliance and automotive industries globally.

It is committed to serve clients with both the best know-how and the latest technologies in glass processing.

Through the combination Glaston will become a significant player in the glass machinery business providing a comprehensive product

range offering from tempering, bending and laminating through insulating glass manufacturing and glass handling to automotive and display glass pre-processing as well as services. As a result of this transformational acquisition, Glaston will have a unique and value adding offering benefitting its customers.

Arto Metsänen, President & CEO of Glaston, comments: “I am very pleased to welcome Bystronic glass’s highly professional team to Glaston. We have followed the company for years and we are very impressed by the quality of its products and its transformation when it comes to both operational and financial performance.

Together we will become a leading player in the glass processing technology market for the benefit of our customers. With our combined capabilities and expertise, we will be able to offer customers equipment, services and solutions from one supplier optimizing customer operations and driving customer value.”

Dr. Burghard Schneider, CEO

of Bystronic glass, adds: “We are proud of our employees for delivering significant improvements over recent years. The transaction will open a new chapter to the benefit of all stakeholders. With an enhanced systems-thinking and strengthened R&D capabilities we will shape the industry trends towards energy efficient solutions and digital integration, jointly with our new colleagues from Glaston.

Together we can serve our broad, global client base even better and we remain committed to deliver flat glass processing at its best in terms of productivity, quality and cost.”

The closing of the transaction is expected by the end of the first quarter 2019, subject to regulatory approval. Glaston has secured committed debt and equity financing, subject to customary conditions and support of an extraordinary general meeting, respectively. Until the closing of the transaction, Bystronic glass and Glaston will continue to operate as two independent companies and the legal structure will remain

unchanged.

Glaston is a frontrunner in glass processing technologies and services. It responds globally to the most demanding glass processing needs of the architectural, solar, appliance and automotive industries. It utilizes emerging technologies that integrate intelligence and sustainability to glass. Glaston is committed to providing clients with both the best know-how and the latest technologies in glass processing. Glaston’s shares (GLA1V) are listed on NASDAQ Helsinki Ltd. Bystronic glass symbolizes innovation with machinery, systems and services for the processing of architectural, automotive and display glass focussed on tomorrow’s market.

From basic requirements through to entire, customized installations Bystronic glass provides pioneering solutions.

Bystronic glass is an international brand with globally operating companies that support their customers on site and through own sales and service companies.

Tecnoglass to construct float glass plant COLOMBIA Tecnoglass Inc. a leading manufacturer of architectural glass, windows, and associated aluminum products for the global commercial and residential construction industries, has entered into a joint venture agreement with Saint-Gobain, through the planned purchase of a minority ownership interest in Vidrio Andino, a Colombiabased subsidiary of SaintGobain with annualized sales of approximately $100 million.

Saint-Gobain, headquartered in Courbevoie, France, is a worldwide manufacturer and distributor of high performance materials and solutions in the building, transportation, infrastructure and industry markets with 2017 sales of $46.1 billion.

Vidrio Andino has been selling

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glass in Colombia and the region since 1997 and began production at its manufacturing facility located near Bogotá, Colombia in 2013, becoming the main supplier of float glass to Tecnoglass since that time.

The joint venture will significantly augment Tecnoglass’ vertical integration strategy by allowing it to acquire an ownership interest in one of the first stages of its production supply chain, guaranteeing stable long-term float glass supply and improving purchasing economics for a significant portion of its float glass sourcing over time.

Building on more than 20 years of success, Vidrio Andino also plans to build a new state-ofthe-art, technologically-advanced glass manufacturing facility in Galapa (nearby Barranquilla),

which is located approximately 12 miles from Tecnoglass’ existing production facilities.

The new facility will have

nominal production capacity of approximately 750 metric tons per day of float glass.

Ardagh to close Illinois factory UNITED STATES Ardagh Group has decided to close its Lincoln, Illinois, USA glass container production facility with the loss of 150 jobs.

The site will close on or after April 30, 2019. Its customers will be serviced from other Glass - North America facilities.

It described the closure as a 'footprint adjustment' and said that, combined with its ongoing focus on cost reduction, it aims to enhance

its competitiveness, as well as optimise the effectiveness of its capital investments.

The container glass manufactrer closed its Milford, MA, facility in March last year while its Ruston, LA plant furnace was placed on a six-month down time in July last year.

It said it would focus its efforts on pursuing growth opportunities in stronger performing end markets, such as wine, spirits and food.

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Bottle shortage pushing up wine prices UNITED KINGDOM The UK wine industry is running out of glass, creating unprecedented price hikes for bottlers - and the situation is unlikely to be resolved before 2020.

Mark Lansley, chief executive at Broadland Wineries, said demand for glass bottles had been “building up over the last few years as the spirits market, in particular gin, boomed and then grew again as drinks consumption boomed during the hot 2018 summer.

There is also evidence that quite a few UK bottlers have been building stocks ahead of Brexit and some brand owners have been switching from plastic bottles to glass.

These all combine to form a perfect storm".

And while “demand has been growing, bottle manufacturing capacity has stayed static, or even declined when furnaces have to go down for periodic maintenance.

So demand has started to exceed production capacity. And when this happens, the bottle manufacturers prioritise the production of spirits bottles as they make more profit margin on these than wine bottles”.

Trevor Lloyd, director of planning

and procurement at Greencroft Bottling Company, said there has been a “massive increase in the demand for glass over the past 18 months and hence a shortage of supply across Europe. Some earlier furnace closures and a number of planned and unplanned furnace rebuilds have only exacerbated the issue. Manufacturers are working to resolve the issue, however a glass furnace can take several months to rebuild and even longer to construct new furnaces and production lines".

He added that “despite our strong relationships with a number of glass producers across the UK and Europe, we are still finding supply tight. It is important to remember bottle manufacturing is run in campaigns and that a furnace may be required to undergo a colour change to produce the bottle required, hence lead times on certain bottles may be months, even in times of low demand”.

As well as furnace closures or rebuilds, Lloyd also pointed to the “demonisation” of plastic packaging, whereas glass is “easy to recycle with a long established infrastructure for recycling”, the

“renaissance in gin and premium mixers” in glass bottles, and the combination of last summer’s heatwave and the World Cup, which “helped increase an already healthy demand for glass".

He also said if there is “another hot summer we can expect the current issues to persist throughout 2019 and into 2020.

Investment is happening across Europe but it is too early to predict if capacity will catch up with the current increases in demand”.

Lansley also predicted shortages in supermarkets as demand for wine consumption "ramps up towards summer. We could see quite a few gaps on the supermarket shelves then”.

Brexit is also contributing to the shortage he added. “Broadland increased its UK bottle and finished goods stocks because of Brexit. I imagine others have done similarly and that will have only worsened the shortage.” He also predicted Brexit-related disruption at the ports could “worsen the situation”.

To combat the shortage, Lansley said “bag-in-box and pouch is looking like an attractive and safer option for new product

development. As is PET for single serve. Sourcing from Europe, where suppliers may also be nearing or at full capacity, is fraught with the difficulties of Brexit. Bottles could be sourced from China but this is a long way to ship bottles in terms of cost and is not sustainable for the environment".

He added the “only way to resolve the issue is to create more production capacity, but this will take at least one and two years to happen".

To pile further pressure on the situation, UK bottle prices increased on 1 January 2019 from anywhere between 10%40%,” said Lansley. “Green is harder hit than flint. I have not seen increases like this before in my 13 years in the wine trade.”

But Lloyd suggested the shortage of glass “isn’t itself necessarily causing prices to increase. The rise in energy costs, especially gas, has driven the price increase; as you’d imagine, a lot of energy is required to run a furnace. The strength of the pound and the increase in transportation rates are also contributory factors".

People and Places Management changes at PSR United Kingdom Halifax based ParkinsonSpencer Refractories Ltd has announced some management changes that came into effect at the beginning of this year.

After 44 years at PSR, 33 of them as Managing Director, David Parkinson has decided to stand down in favour of his son Simon Parkinson who has now taken over as Managing Director from 01/01/2019.

PSR has always been a family business with a long histor y stretching back as far as 1800 and this sense of stewardship for the benefit

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of future generations has ensured its continuity to date.

With David’s daughter Joanne Parkinson also in the business as Commercial Director and Company Secretar y, and with a strong and suppor tive management team, Simon and Joanne become the eighth generation to manage the company since it was founded in 1800 by Caleb Spencer.

David Parkinson retains a par t time position as Chairman.

AG wishes the new incumbents success in their new positions, and hopes that

Simon Parkinson Director

Joanne Parkinson Director & Company Secretary

David’s par t-time role still will enable him to make the

occasional appearance at the industr y’s largest exhibitions.

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News

People and Places

GPD issues Call for 2019 Special Award Finland The next Glass Performance Conference in June 2019 will announce the recipient of the second Jorma Vitkala Award of Merit (JVAM) at its Opening Ceremony. For this purpose, the international Nomination Committee has established a nomination path that starts in January 2019, results in a screening of candidates by March 17, 2019 and ends with the Award Ceremony on June 26th, 2019. The JVAM prize was established at GPDs 25th Anniversary Conference in 2017 and will now be awarded for the second time.

This special Award was

introduced to honor and reward individuals who have made outstanding personal contributions to the progress and development of the international glass industry over the years. Such contributions may represent e.g. product /process development, new innovations, systems, construction, design, architecture, ambitious research initiatives and advanced learning.

The Prize offers an opportunity to extend both recognition and visibility for achievements that enjoy broad-based appreciation within the industry.

The candidates nominated for the Award through an Open Call

(https://events.gpd.fi/event/ m0k2E) will be screened by the Nomination Committee by the end of the First Quarter 2019. A listing of top candidates will follow and be made subject to a public vote in the Second Quarter 2019.

The recipient of the Award will be published at GPD in June 2019.

While the highlighting and personification of the Award is a very concrete and effective publicity step we wish to underline that it is for the common good and progress of the glass industry that the Award is instituted, says JeanPaul Hautekeer of Dow Europe, Chairman of the Nomination Committee. Continued innovative

progress and bold new solutions will keep the applications of glass at the forefront for designers, industries and research institutions and provide us with effective competitiveness in the choices of materials and solutions for building, automotive and interior decorating. The Award is our special tribute to leading contributors to the development of the glass industry.

For additional information about the Award and the selection process, please contact the coordinator of the nomination procedure Jorma Vitkala at jormavitkala@gpd.fi, mobile +358 40 553 2042.

British Glass appoints Ciner appoints new director at UK-subsidiary new president United Kingdom Saint-Gobain Glass UK’s Managing Director Steve Severs has been appointed as the new president of British Glass.

Steve began his two-year term on January 1 taking over from Encirc’s Adrian Curry, who served as president from 2017.

He has been Managing Director at Saint-Gobain since 2013 and is currently a member of the board at British Glass.

British Glass CEO Dave Dalton said: “Steve’s dedication to the glass industry is exemplary and I’m sure his character and commitment will continue in the footsteps of Adrian Curry to help us guide our industry’s needs through these uncertain times for

Turkey the UK manufacturing sector.

“I would also like to sincerely thank Adrian for his tireless work and dedication to the role for the past two years.

"He’s been a fantastic support to me and the whole team at British Glass and a real source of inspiration.”

Steve Severs said: “I am proud and honoured to take up the role as President of British Glass and to combine with them to continue to promote the exceptional contribution of the glass industry to the UK manufacturing scene, and help represent the industry at national level in order to further promote its success and contribution.”

One of the UK’s best-known investment bankers, who spent more than a decade at Goldman Sachs and Deutsche Bank before leaving the City last May, has re-emerged at a Turkish soda ash producer.

Alasdair Warren, the Goldman partner hired by former Deutsche Bank boss John Cryan to turn around its investment bank in Europe, the Middle East and Africa, has become a director at We Soda in London.

A spokesman for We Soda said Warren was hired earlier in January but declined to give further details.

We Soda is wholly owned by Ciner Group, a Turkish industrial

AGR appoints regional director South America Agr International has named Ms. Marta de la Torre as Regional Director of Sales and Service for Latin America.

Ms. de la Torre (pictured right) has worked for Agr for 20 years and has vast experience in the region with her former role as Sales Regional Manager.

She has successfully provided knowledge of quality assurance and process

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control to the glass, plastic and packaging industries in the region.

Latin America continues to offer development in the packaging markets, evident with growth in Agr’s customer base within this area.

Agr made the decision to advance the role of Ms. de la Torre as well as expand the sales force in the region with

the addition of Mr. Sergio Ruiz.

Mr. Ruiz comes to Agr following 10 years in process, project and sales engineering in the region.

Mr. Israel Hernandez and his team of factory-trained service engineers also continue to provide installation, service support and training to meet the needs of the customers within the area.

conglomerate that mines 2.8 million tonnes of soda ash each year from its facility in Green River, Wyoming in the US. Soda ash is used in the production of glass, as well as household detergents.

Warren joined Goldman in 2005 and rose through the ranks of its equity capital markets division before eventually leading the bank’s financial sponsors group — which serves private equity firms — in Emea.

He switched to Deutsche 10 years later with a mandate to help revive the fortunes of the German lender’s European investment bank, which had slipped behind US rivals Goldman Sachs and JPMorgan in the region’s banking league tables.

During his time at Deutsche, Warren turned to his former employer for some big-name recruits including Robin Rousseau, who arrived as head of Emea mergers and acquisitions, and Thomas Piquemal, who joined to lead its French business but has since left the bank.

Warren left Deutsche in June 2017, shortly after new chief executive Christian Sewing unveiled a series of cost-cutting measures at the investment bank. Warren’s responsibilities were taken on by Mark Fedorcik.

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News

Batch

Prices rise as supply tightens United States // Soda ash US 2019 soda ash prices have been assessed upward by $10/short ton, based on market feedback.

Persistently tight global supply pressured US annual contract prices higher. The market generally accepted price increase initiatives, separately announced by producers.

Prices were assessed at $212-232/short ton.

Market fundamentals are largely unchanged, as worldwide demand continues to exceed global supply inventories.

Aside from meeting domestic contractual obligations, US producers have looked to export material to Latin America and Asia, where the market is

"Scaled-back production at some Chinese synthetic soda ash facilities may also put pressure on global soda ash supply in the medium term. " underserved, as China has pulled back on exports.

Domestic demand for US material in 2019 is expected to be "fairly stable, with a slight pullback from 2018 demand," according to one market participant.

While US material was sufficient to meet domestic

demand, producers of US material focused on growing export opportunities as the global supply situation remains tight.

Global supply was tight throughout 2018 as the Kazan Soda Elektrik plant in Turkey, which did not relieve the worldwide shortage as was

initially thought, was slow to ramp up.

All five lines were heard to be up and running by end-2018, though it is unclear whether the facility is at full capacity.

Scaled-back production at some Chinese synthetic soda ash facilities may also put pressure on global soda ash supply in the medium term.

Wyoming trona mines account for about 90% of the US production of soda ash (sodium carbonate).

Downstream, about 50% of soda ash goes into glass making.

Producers of US soda ash include Genesis Alkali, Solvay, Tata, Ciner and Searles Valley Minerals.

Annual contract pricing sees slight rise Europe // Soda ash Participants in the European soda ash market have settled 2019 annual contracts with increases of â‚Ź15/tonne compared with 2018 business, depending on the account, starting point and region, sources have said.

Although contract negotiations began earlier than last year, with some annual business discussions starting in October 2018, many buyers

did not settle all business until later in Januar y 2019.

There were a number of factors for the increase in soda ash prices for 2019, but the main driver was ongoing strong demand and mostly tight supply dynamics throughout Q4 2018 and continuing into early 2019.

The global market was tighter than anticipated for 2018 due to production issues in some

Manufacturers seek tariff finale Japan/United States // Soda ash Wyoming's congressional delegation has urged U.S. Trade Representative Robert Lighthizer to prioritize eliminating the Japanese tariff on U.S. natural soda ash during the U.S.-Japan trade agreement negotiations.

U.S. Sens. Mike Enzi, John Barrasso and Rep. Liz Cheney noted in a letter to Lighthizer that eliminating the Japanese tariff of 3.3 percent on soda ash could help increase U.S.

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production and support more than 20,000 well-paying direct and indirect jobs in America.

The Republican delegation says eliminating the 3.3 percent duty would help U.S. soda ash exports to compete more fairly in Japan and prevent further market share erosion.

Also, they say greater soda ash exports would help reduce a nearly $70 billion trade deficit with Japan.

markets and environmental shutdowns limiting exports in China.

In early 2018, many participants in Europe expected new capacity that had just ramped up in Turkey would lead to a longer market.

However, one of the lines was wrought with delays, only starting up in September 2018, and according to the latest data from Turkstat, it is likely that the Kazan plant was not running at full rates, even with only four lines operating.

Upward price pressure was also said to have come from rising energy costs for producers, whether they were using gas or coal/coke for production purposes.

Prices rose over 2018 as well due to rising EU carbon credit costs needed to run CO2 emitting production facilities, which squeezed some producers' margins, according to sources.

Fundamentals have remained broadly tight this week with talk in previous weeks of there being scant spot material available in

Europe at this time with most sellers sold out for the year.

Stable-to-firm demand in most downstream sectors and the ramping up of new container and flat glass lines in some markets during 2019 is adding to the bullish sentiment.

Some sellers are not overly concerned that automotive sales slowing down in parts of Europe or Brexit would impact the market significantly, although a wider macroeconomic slowdown across key regions such as Europe or Asia could potentially weigh on buying interest in the longer term, if such events occur.

Asian Glass: mobiles, ipads & androids

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Anaylsis

Refractory Zone Dalmia purchases GBS Group India Dalmia OCL, the refractories business of the Rs 10,000-crore Dalmia Bharat Group, marked its firstever international acquisition with the takeover of GSB Group GmbH, a German-based speciality refractory maker and a global leader in lance production, which is essential for clean steel production.

According to the company, the takeover will provide Dalmia OCL access to customers in the heart of steel and refractory making belt in Europe and state-of-the-art technology to make cleaner steel. It will also provide an opportunity to work with newer talents trained in advanced steel-making processes.

“We are delighted as this acquisition marks our group’s first major step in Europe where

consolidation in the market has opened new doors for a company like ours. Dalmia-OCL’s end-to-end refractory portfolio and GSB’s access to European steel customers will make this combination a strong competitor in Europe”, Sameer Nagpal, CEO, Dalmia OCL said.

“This acquisition will also make us one of the specialized manufacturers of refractories, for cleaner steel production, a focus area for Indian steel makers too. It will give us newer resources and talents in Europe which will help strengthen our capability in India, which is the fastest growing market for refractories in the world”, Nagpal added.

Dalmia OCL is India’s second-largest

refractory company with a production capacity of 250,000 tonnes per annum. The company expects to close this financial year with a revenue of Rs 800 crore, of which, around 60 per cent is likely to be contributed by the steel segment.

Backed by four plants in India and one in China, Dalmia OCL offers end-to-end refractory products, solutions and services to customers in core manufacturing sectors such as iron & steel, cement, glass, non-ferrous metals and energy & petrochemicals. It is a leader and pioneer in several mission-critical refractory product categories including high alumina bricks for cement manufacturing.

IRMA urges import slowdown India “The refractory and steel sectors need to work closely with each other to reduce dependence on imports and cut production costs,” said a top official of the Indian Refractory Makers Association (IRMA). “If India wants to achieve its ambitious target of 300 million tonne of steel production by 2030, the only way forward is synergy between the two sectors,” said Head, Advocacy of IRMA, Sameer Nagpal.

“Though the Indian refractory industry was minuscule compared to its steel counterpart, it is critical in the production of the metal,’ he said, adding, the steel sector consumes about 65 to 70 per cent of refractories. ‘Unless the issues related to the refractory industry are addressed, the government’s steel production target might get hampered,” Nagpal, who is also the CEO

(Refractory Business) of the Dalmia Bharat Group, told PTI. Currently, the refractory sector is largely dependent on China for raw-material procurement, much like the steel industry that imports around 40 per cent of low-cost finished products from that country. Nagpal, however, said following the implementation of new environmental rules in China, the inflow of raw materials has been disrupted, affecting the refractory companies.

Batting for zero per cent duty on raw materials, he said domestic refractory companies are on expansion mode through the inorganic route, and the industry is expected to garner an investment of $ 100-150 million, mainly in the eastern part of the country in the next three to five years.

The IRMA functionary said most of the

acquisitions are likely to be in Europe, which will also help in latest technology transfers. Nagpal said that India can become a refractory hub if the right steps in favour of the sector are initiated, such as making it a part of the Steel Research and Technology Mission of India (SRTMI), which has already attracted an initial corpus of Rs 200 crore.

He also said that a proposal has been mooted to set up a refractory centre of excellence. On Dalmia Bharat Group’s expansion plans for the refractory business, Nagpal said it is eyeing overseas acquisitions, too, particularly in Europe and Egypt. ‘Our negotiations are underway with three companies in Europe and Egypt. At least one of them will be finalised by the next quarter,’ he said. India’s current refractory capacity stands at 1.5 million tonne per annum.

India to gain as duties bite?

China Carborundum Universal, the adhesives, electrominerals and ceramics manufacturing firm of Murugappa Group, has started the first shipment of standard electrominerals to the US. This comes as the opportunities open up with the deteriorating trade relations between China and the US. The US has imposed a 10 per cent duty on fused minerals from China, and is looking at alternatives. It is expected that it would increase the duty to 25 per cent, which would open up major opportunities for the company, said the company management.

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“We’ve always been making shipments of specialty electrominerals to the US. Now, we have started shipping the traditional standard electrominerals,” said K Srinivasan, managing director, CUMI. Currently, most of the products have a 10 per cent duty. But more than the cost benefit, customers there are looking at alternatives.

The opportunity in the US could be $1.5-2 billion.

“We have started making our first shipment of standard electrominerals to the US. If this 10 per

cent duty goes up to 25 per cent, then there will be a greater demand for shipments going to the US,” he told analysts in a recent earnings call.

While the company has shipped a few odd tonnes to begin with, more shipments are expected during the current quarter. Further, if the duties go up to 25 per cent, a significant quantity of supply would be shifted out of China.

While the opportunity is huge, there won’t be too much capacity to export considering that domestic sales are also good.

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WHEN QUALITY MATTERS www.parkinson-spencer.co.uk

News Anaylsis

News

28

Firzobad: history with a modern challenge

F

irozabad, a district in Uttar Pradesh, about 40km away from Agra and 255km from Delhi, is a home to many Jain temples but mostly it is known as glass making hub.

Famous for all sorts of glass work, not only in India but also globally, Firozabad glass industry has a fair share in the sector: in 2018, it was estimated to be around Rs 170 billion.

“This city is also known as Suhaag Nagri and is famous for its glass handicraft and mouth blown glass work. Now challenges are huge, plastic industry has almost made some of us shut shop, but we are fighting,” says Sanjay Agarwal of General Traders who also represent the UP Glass Manufacturers’ Syndicate as its secretary in Firozabad. City is home to at least 200 organised manufacturing units out of which 130 units are manufacturing bangles, about 40 are practicing mouth blown technique and rest are automated, either manufacturing bottle or glass tumblers, Agarwal tells us further.

Plastic, however, has had an effect.

A few decades earlier, when plastic was not popular it was labour, raw material, power, mismanagement issues that were the major challenges of the industry.

From year on year growth of 14% in the 1980s, it has now slowed to just 2-3%.

The industry faces crises due to the lack of capital funds, shortages of trained labour, shortage of raw material, shortage of power or energy, lack of energy conservation, lack of new technology, mismanagement of employees, tendency of labour turnover (mobility of labour), lack of education trainings and government apathy.

MSME development institute’s director RK Kapoor admits that Firozabad glass sector is going through a lot of difficulties.

“The biggest challenge for the market is to shift factories somewhere else as it falls in TTZ region. Second, there is a shortage of skilled workers and the third difficulty is that factory workers work in extreme conditions, high temperatures and toxic gas, which in turn cause various diseases.

Natural gas fuel price is another issue which businesses are fighting against.”

Agarwal talks about how plastic industry

asianglass AG 19-1

has spoiled it for the glass industry.

“Glass was the only material which is eco-friendly and was used for various purposes from kitchen to living room. But in the past 10 to 15 years, cheap plastic has taken over glass products. Consumers are buying plastic over glass as it is easily available and is not expensive and, most importantly, unbreakable,” added Agarwal.

As a member of the glass manufacturer association, Agarwal is concerned about the revenue loss that businesses are facing. “Despite the less demand, we are unable to cut down the production as it is continuous process industry. Here the process has a fixed cost involved whether it is raw material or labour cost. And due to over production we are selling at cheap prices too,” said Agarwal. Meanwhile, prices of raw materials have escalated too, as a result manufacturers are not being able to absorb the price difference created due to the over production and less demand.

Another blow came to the glass market in the form of Taj Trapezium Zone (TTZ) which includes Firozabad too. TTZ is a defined area of 10,400 sq km earmarked over the districts of Agra, Firozabad, Mathura, Hathras and Etah in Uttar Pradesh and Bharatpur in Rajasthan to protect Taj Mahal from pollution.

Understandably, glass makers are not happy over the situation. Due to ever increasing pollution level, the SC is only tightening its grip over the matter. “We are also environment lovers, but it seems that the state civic authorities do not want us to profit at all,” says an industrial source.

According to him, the authorities are again troubling manufacturers on account of elevated pollution levels. “We are using natural gas which is the best non polluting fuel available in India. Now authorities are reprimanding Firozabad units for pollution.

However, it’s been proved by recent report

by National Environmental Engineering Research Institute (NEERI) which states that city emissions do not even reach Taj Mahal,” he says.

Another major challenge for glass manufacturers is fuel price. Back in 2014, during elections, the fuel price and it’s

availability was the main agenda in the manifesto. But it was all promises which are yet to be fulfilled, say industry sources.

At present around 199 glass units are operating on natural gas, while at least 30 to 40 units are awaiting release of gas supply. Akash Jain, who is an exporter and manufacturer of glassware under the name Eagle Glassware, says, “Our plant runs on natural gas. But there are small bangle makers who are not able to pay huge amount for fuel. Government should lower the price and make the terms more lenient.” Like fuel availability, electricity shortage is another challenge.

On the bright side, today technology has taken over and a number of manufacturers have transformed their businesses. The government setup, Centre for development of Glass Industry, under MSME ministry, is lending businesses training and providing machines. “Earlier it was a manual process.

CDGI helped us with transformation. Their technicians provided us trainings and assisted us in purchasing machinery for our shop floor where at least 200 people work.” says Jain.

Machines though an asset for businesses, they come with their own rider too. Since machineries took over, many people have lost their jobs or have migrated to another field. This has become a double-edged sword, with people moving between jobs more easily than before. “It’s a challenge for us to retain workers, as it is a labour intensive industry. It is critical for a person to be well versed with working of the glass industry. Despite giving them trainings, its hard to maintain the workforce as nowadays, people are shifting to different professions,” says Rajendra Prasad Jain of Firozabad Ceramics.

Indeed, in past few years glass industry has transformed itself from cottage to fairly organised industrial sector, from rudimentary mouth blown and hand working process to modern techniques with assistance of government initiatives. first the sector needs lot more attention than it is getting. First and foremost, there is a pressing need to create awareness among people about the benefits of using glass over plastic.

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ANALYSIS: IGU

Windows on the ASEAN IGU shows growth Jahir Ahmed looks at how the insulated glass market across the South East Asian region has gathered momentum in the last few years and how continued technological developments, coupled with regional atmospheric needs, are driving up demand.

T

he production and market of insulated glass units (IGU) is steadily expanding in the ASEAN countries, which are experiencing a combined GDP growth of about 5 percent per year, since past several years, pushing ahead a significant expansion period of house building construction and renovation prompting a stable demand for building glasses. IGU productions are mostly limited to the float glass manufacturing countries of Indonesia, Malaysia, Philippines, Thailand and Vietnam.

As the regional IGU market is growing fast, the imports continue to remain as the major supply source catering over US$74 million worth of IGUs, shipped mostly from China, although, due to increasing ASEAN production, the official imports from China is gradually declining. Many of the expensive buildings used as office blocks and residential houses also use IGUs imported from the established sources of USA and West Europe.

ASEAN region’s two leading IGU manufacturers, Thailand-based ThaiGerman Specialty Glass Co Ltd (TGSG) and Vietnam’s SADO Group, have been beating the illegal alien goods considerably. They said they run global standard production lines to cater customers at home and abroad, being internationally known manufacturers of IGU by investing huge amounts on plant and machinery procured from renowned European suppliers.

“We operate a fully functional IGU line with foreign trained skilled workers and supported by own R&D lab and marketing department,” said Nguyen Cong Chinh, General Director of SADO Group. SADO entered in glass processing this decade, while TGSG is in IGU business for over a quarter century. TGSG said their operation is globally recognized since decades as they export worldwide.

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However, Industry sources estimate that China alone is supplying around US$100 million worth of IGUs, officially and non-officially, to the ASEAN markets. The bordering Vietnam absorbs a huge quantity of IGUs through unofficial channels as Vietnam has a higher demand and unofficial cross border trade is beyond control, according to the industry sources. IGU manufacturers in Philippines and Indonesia also allege about smuggling of cheaper Chinese products. Officially, China exported US$60.276 million worth of IGUs to the ASEAN countries in 2017, according to the Geneva based International Trade Centre (ITC). In the previous two years, 2016 and 2015, the official imports of IGUs from China to the ASEAN countries were of worth US$66.972 million and US$80.712 million, respectively.

Most of the IGUs used in the ASEAN region is double glazing units, commonly installed in the windows of residential, commercial and office buildings. Double glazing substantially increases the energy efficiency of any door or window product, and in turn significantly boosts the performance and energy star rating of the overall building, said Indonesia’s Bekasi based Abeglass that produces Argon gas filled double and triple glazing IGUs. Abeglass said it uses low-E in its IGUs. Low-E glass has a microscopically thin yet durable coating which controls flow of heat in and out of doors and windows, making home cooler throughout whole year, it said. “Actually,” said the manufacturer, “the best way to evaluate the result will be the savings one will enjoy from the energy bills.” The company said it produces a diverse range of IGUs with different glasses, including normal, tempered, clear float glasses.

Double-pane safety glass separated by an air vacuum is hermetically sealed, and is used mainly to reduce heat build-up during warmer days, lower condensation and prevent from sound penetration. It offers lower ultraviolet

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ANALYSIS: IGU

e world

IGUs installed in 188-metre Vattanac Capital Tower in Phnom Penh. Photocredit Vattanac

transmission than other types of glass. IGUs are becoming popular and ideal for facade, windows, facing direct sunlight or places where temperature, outside sound and outside view is a priority, said the IGU manufacturers.

Almost all of the landmark buildings in the ASEAN countries are using energy saving IGUs. Each building has huge installations in windows and facades. Bigger buildings have thousands of windows. The stainless steel and glass structure, 452-metres tall, Petronas Twin Towers in Kuala Lumpur, Malaysia, contains 32,000 windows. Green activists said all the cities and towns in the region are becoming jungles of multi-storied buildings. However, they added, such buildings are equipped with IGUs, which will save energy and lower emissions to some extent.

Extensive use of elevators has increased the opportunity of going high rise.

The emerging larger commercial buildings are now designed with glass curtains and the owners hardly debate on the economic and environmental benefits in

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use of IGU following rising trend in use of air-conditioning and pressure on saving energy.

Growth potential

The demand for IGU and its growth in the ASEAN countries are continuing parallel to the economic growth and construction of high-rise commercial buildings and residential apartments all over the ASEAN region. In the high per-capita GDP economies, such as, Brunei, Malaysia, Singapore and Thailand, the demand for IGU is much higher. Malaysia Glass Association president Woo Wan Zheng said Malaysia’s glass industry has been growing steadily with industry players leveraging further on their enhanced manufacturing facilities, especially, in production of energy saving and other diversified glasses. “Each segment in our glass industry has been growing as we are adopting numerous new technologies in glassmaking,� he said.

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ANALYSIS: IGU

Malaysia’s Crystal Safety Glass Sdn Bhd (CSG), established two decades ago, has been manufacturing high quality IGU. “Throughout the years,” the company said, “we have expanded from Malaysia to Singapore, Thailand, Cambodia, Vietnam and Indonesia.”

CSG adopts Austria’s LiSEC automatic insulating glass production line for multiple glazing insulating units, including double and triple glazing IGUs. The different pieces of glasses are separated with an aluminium tube and the inside is filled with desiccant. The hollow space is inflated with dry air or inert gas and sealed with butyl rubber, polysulphide sealant, or structural adhesive, to form glass with dry space. Using argon in the air space between the two panes of glass provides further insulation, as these gases are denser than air and less like to conduct heat through the IGU. According to CSG, combined with a low-e glass coating, these gases work to improve the window’s overall U-value. The lower the U-value, the better the insulating glass unit. When 90 percent Argon gas fill is used in a low-e IGU instead of air, the window’s U-value can be improved by up to 16 percent.

CSG Insulating Glass is the most effective way to reduce air-to-air heat

AGC IN FOCUS AGC Flat Glass (Thailand) PCL and AGC (Asahi Glass Co) Group South East Asia operations Location: AGC Group’s main Thai operator, AGC Flat Glass (Thailand) PCL, has factories in three places of Thailand. Samut Prakan Factory at Pak Khlong Bang Pla Kod, Phra Samut Chedi, Samut Prakan; Chon Buri Factory at Amata Nakorn Industrial Estate, Nong Mai Daeng, Mueang Chon Buri, Chon Buri; and Rayong Factory at Amata City Industrial Estate, Map Yang Phon, Pluak Daeng, Rayong.

Headquartered in Japan with IGU production lines in AGC float and processed glass plants in different Asian countries, such as, Thailand, Indonesia, Malaysia. Philippines, Japan, China, South Korea and India, AGC Group has major manufacturing operations in the Thai locations for marketing in the South East Asia region, specially, in the ASEAN countries.

IGU (Insulated Glass Unit) productions: Product name: AGC PairTAG (application: to save energy and protect heat transfer).

Product description: PairTAG consists of two or more sheets of glasses with the aluminum spacer frame in between. This makes PairTAG effectively save energy and protect the heat transfer into the premises that would like to control the temperature, such as, hospital, hotel, airport, office, residential buildings. etc, and specially, those who require energy saving and cost control.

Exterior ‘lite’ of PairTAG is made from clear float glass, tinted float glass, tempered glass, heat reflective glass, etc. Available in total thickness ranging from 12mm to 52mm. Also available on AGC PairTAG Argon, which is an IGU that consists of argon between 2 panes of glass. Argon works as a heat insulator, retards the emissivity, and has no colour, no smell, and no pollution to harm human health and environment, AGC claims.

Product name: AGC PairTAG LOW-E (application: low emissivity and energy. conservation).

Product description: AGC PairTAG LOW-E IGU provides low reflection, low emissivity enhanced neutral and energy conservations.

It is a high quality insulating glass which is normally made up from 2 sheets of glass with the aluminum spacer frame between. A feature

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asianglass AG 19-1

SADO GROUP Vietnam IGU. Photo-credit SADO

of it is low-emissivity material coating on the layer side of the inner glass pane (surface No.2). Consequently, it is a wise election for low emissivity and energy conservation. Available thickness ranges from 12mm to 52mm. Also available on AGC PairTAG LOW-E Argon that consists of argon between 2 panes of glass to work as a heat insulator and retard the emissivity, while it has no color, no smell, and no pollution to harm human health and environment.

Product name: Pairglass™ and MyMute™ (application: noise reduction).

Product description: Glass with dried air enclosed between 2 pieces of float glass. Effective in heat insulation, energy conservation and dew condensation prevention.

Low-E IGU productions/Product name: Sun Balance™ and Pairplus™ (application: renovations) Product description: Glass with special metalized coating inside one of the double glazing to improve heat insulation or heat reflection effect.

Markets: Japan based AGC Group, with the world’s largest glass manufacturing and marketing networks, is a leading operator with major market shares in the domestic markets in its manufacturing countries, including, Thailand, and in the South East Asian region, as well as the world markets.

Others: AGC Group has several float, processed and specialty glassmaking plants in Thailand making this location as the leading hub in South East Asia. Its AGC Flat Glass (Thailand) operation is the first flat glass manufacturer in Thailand and this plant, manufacturing float and various processed glass, was established in 1963 under the former name of “Thai Asahi Glass” as the joint venture between Thai investors and Japan’s Asahi Glass Co. This manufacturing operation expanded gradually by setting up other plants.

For half a century, AGC Flat Glass (Thailand) is the leading glass manufacturer in Thailand, producing quality flat glass, such as, clear float glass, tinted float glass, heat reflective glass, mirror, figured glass, tempered safety glass, insulating glass, laminated safety glass and several kinds of specialty glass to supply to construction (housing and building) sector, glass processors and fabrication industry and automobile glass manufacturers, both domestic and export customers, in the region and around the world.

www.asianglass.com

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ANALYSIS: IGU

NSG Group South East Asia operations

(Mother company: Nippon Sheet Glass Co Ltd) Location: South East Asian float and processed glass production plants in Malaysia and Vietnam with headquarters in Sumitomo Fudosan Mita Twin Bldg, West Wing, 3-Chome, Mita Minato-ku Tokyo, Japan. Beyond South East Asia, NSG has float and processed glass production plants worldwide, including, Japan, China and India.

Products: IGU and other processed glass, including, float glass for manufacturing IGU and processed glass by others.

Markets: Domestic and export markets all over the world.

Guardian Industries Corp Ltd and Guardian Industries Rayong Co Ltd

CSG Malaysia production line. Photocredit SCG

transfer through the glazing. When used in conjunction with low-e and or reflective glass, the IGUs become an effective mean to conserve energy and comply to green building requirement, said the company. The most common architectural insulating glass unit configuration it offers is 6mmx6mm glass with 12mm airspace.

Equipped with state-of-the-art production facilities, located in Telok Gong industrial area, near Port Klang in Selangor state, West Malaysia, CSG keeps up with market demands by providing quality services and products of high standards as most reliable and cost-effective environment-friendly green glass processing and supplying company in Malaysia, claimed the IGU manufacturer.

Thai TGSG offers a diverse range of IGUs for energy saving-heat insulation and noise protection. It started its operation with three state-of-the-art production lines, tempered glass, laminated glass, and insulating glass on a turnkey basis under the supervision of its suppliers then included other bent glass and silk-screen printed glass as its standard products.

To meet the growth of IGU demand, TGSG with over years of experience in its effort is providing services to customers by expanding its two production lines IGU unit and tempered glass sections with upgraded computerized machinery and equipment. It produces quality IGU and specialty glass for Thailand and other ASEAN countries and also for others in the world markets.

TGSG said it has realized the recent increasing demand for acoustic glass with noise becoming a serious issue, particularly city-living in an area with high levels of air traffic or busy roads. It introduced noise control glass (NCG), which is a solution for insuring exceptional levels of sound insulation.

NCG thickness ranges from 12mm to 40mm with STC 37-50. NCG can be functional to both commercial and residential buildings when applied to products, such as, glass roofs, skylights, windows, conservatories, patio doors, partitions and internal screens.

NCG in construction of laminated glass and laminated IGU are thoroughly compatible with acoustic control as façade elements and provide multiattribute functionalities for safety, security and property protection. The acoustic glass within a double-glazed unit comprises an interlayer which acts as a dampening core to prevent sound frequencies from vibrating from one pane of glass to the other. This absorbs and weakens sound energy, helping to act as a barrier to noise.

Acoustical benefits

Both NCG laminated glass and insulated glass units can provide significant acoustical benefits. Acoustic glass can be combined with many other

34

asianglass AG 19-1

Location: Two plants in Thailand; in Nongplamoh Sub-District, Nong Khae, Saraburi 18140, and in Tambon Nonglalok, Amphur Bankhai, Rayong 21120.

Products: Window and curtain wall IGU and other processed glass, and float glass.

Markets: Domestic and export markets.

Others: In production of its IGU it uses its own safety glass manufactured from its primary float glass products that include extra clear and green tinted glass.

Saint-Gobain Asia-Pacific’s South East Asia operations

Location: Saint-Gobain General Delegation Asia Pacific for South East Asia headquarter is based in Bangkok, Thailand, with Thai manufacturing location in Tumbol Pluakdaeng, Amphur Pluakdaeng, and Rayong 21140.

Products: IGU and Saint-Gobain’s all core products manufactured in Thailand and other regional countries.

Markets: Thailand and the South East Asia region, and others mainly in Asia Pacific.

Others: Thailand is Saint-Gobain’s largest market in South East Asia, and Thailand is its regional hub for supplies to the Asia Pacific countries, specially, to the ASEAN bloc markets. Saint-Gobain has operations with more than 10 plants in Thailand, Singapore, Malaysia, Indonesia and Vietnam.

Thai-German Specialty Glass Co Ltd (TGSG)

(A Thai-German joint venture) Location: Bangna-Trad, Road-KM32, Bannrakard Bangbor, Samuth Prakarn, Thailand.

Products: IGU and other processed glass.

Markets: Domestic and export markets.

Others: 3 decades old IGU manufacturer TGSG is a leading IGU and other specialty glass manufacturers in Thailand. It was established through a joint venture between Thai and German investors with the promotional privileges of Thailand‘s Board of Investment (BOI).

It started operation with three state-of-the-art production lines for window and curtain wall IGU, insulating glass panels, tempered glass, and laminated glass on a turnkey basis under the supervision of its suppliers. Soon its IGU lines were upgraded with computerized machinery. Its products are exported to Asian countries, Australia, Canada, South Africa, and European Union.

TGSG claims it is the first company in South East Asia to have the certification license AS 2208 for safety glass, and obtained standard certificates, including TIS 965-3537, TIS 1222-2537, DIN 1286 (Sealed Insulating Glass Manufacturing Association (IGCC), and compliant to product standard JIS3206:1996, JIS3205:1998, and ANSI Z97.1.

www.asianglass.com

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ANALYSIS: IGU

NCG type IGU of Thai TGSG. Photocredit TGSG

Viglacera DapCau Sheet Glass Joint-Stock Company

(A unit of state-owned Glass and Ceramics for Construction Corporation (Viglacera) Established in 1990.

Location: Ward Vu Ninh, Bac Ninh city, Bac Ninh province, Vietnam.

Products: IGU and other processed glass.

Markets: Domestic and export markets Others: Viglacera DapCau has joined with Facade Treatment Engineering (Malaysia) in 2008 for obtaining cooperation in producing and installing curtain wall systems, which gave the way for setting up of VinaFacade JSC in Vietnam. Malaysia based Facade Treatment Engineering provide the design while Viglacera DapCau provide glass and installation for any project under the name of VinaFacade. Available products include, stick system curtain wall, semi unitised system curtain wall, fully unitised system curtain wall and spider fittings glass wall. DapCau’s other glazing products includes low-e IGU.

Viglacera Corporation/Viglacera Float Glass (VIFG) Location: Tan Dong Hiep Production Area, Di An, Binh Duong, Vietnam Products: IGU and other processed glass and float glass.

Markets: Domestic and export markets Others: In addition to manufacturing normal float glass, Viglacera Corporation and its production unit Viglacera Float Glass (VIFG), operates glass processing utilizing processing plants in subsidiary units.

SADO Group JSC products for multi-functional glazing such as thermal insulation, solar control, low-maintenance and decorative glass, said TGSG. Its sound transmission class (STC) is a single number rating of the effectiveness of glass, other construction material or construction assembly to resist the transmission of airborne sound at the frequencies 125-4000 Hz. The higher STC rating blocks more noise from transmitting through a partition.

It offers a profiled ‘U’ shape glass, which is a self-supporting cast channel glass in primary annealed form which obscures vision for privacy but allows transparent light transmission. This specialty glass could be single glazed or double glazed in perimeter frame depending on different and versatile applications. The dual glazed glass is energy efficient and provides excellent sound reduction, TGSG claims.

TSGS’s linear channel glass is available in a wide range of options starting from clear, standard texture, new surface finishes, amethyst coated, low-e coated, solar control coated, low iron, wired and in variety of widths. This glass could be cut to sizes and supplied in tempered, tempered with heatsoaked test, opal design and color enameled.

TSGS also has a “SPACE-LITE”, insulated glass, which is hermetically sealed combinations of two or more lites of glass separated by a dry airspace. The spacer is filled with desiccant to absorb moisture inside the unit. By combining Low-E coatings, standard and high-performance tinted glasses, reflective coatings, silk-screened patterns, laminated glass products as well as filling the air space with heavy gas can substantially improve the insulating properties. A wide variety of insulating glass configurations is available to satisfy a wide range of performance and aesthetic requirements.

Location: Tam Phuoc Commune, Bien Hoa City, Dong Nai Province, Vietnam Commissioned: Started commercial operation in mid-2014 Products: IGU and other processed glass.

Markets: Domestic and export markets, including, USA, EU, Australia, Cuba, etc.

Others: IGU is one of the core products of SADO Group. It will also substitute imported high-end IGU. SADO has been using technologies and machineries from global industry leaders including LiSEC, Glaston and Benteler. It uses float glass from Pilkington, Saint-Gobain, Viglacera, VFG, and AGC. Low-e glass from Saint-Gobain and Pilkington. Silicone sealant from Dow Corning. The company claims, its customers at the domestic and export markets include high-end building project developers and manufacturers involved in production of automobile, trains, ships, etc.

Scale matters

Vietnam’s SADO Group has developed a standard glass processing factory with an investment of over VND500-billion, providing facilities for quality

36

asianglass AG 19-1

SADO GROUP Vietnam IGU. photocredit SADO

www.asianglass.com

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ANALYSIS: IGU

Intra-Asean IGU exports (tonnes) ASEAN Exporters, IGU (Quantity)

World

2013

2014

2015

2016

Exported quantity, Tons

Exported quantity, Tons

Exported quantity, Tons

Exported quantity, Tons

No Quantity

Association of SouthEast Asian Nations (ASEAN) Aggregation

No Quantity

No Quantity

No Quantity

2017 Exported quantity No Quantity

Unit No Quantity

1,156

1,524

4,438

2,361

NA

Mixed

Singapore

568

915

3,968

1,343

1,757

Tons

Indonesia

68

68

75

128

223

Tons

Thailand

240

186

110

228

164

Tons

Malaysia

236

167

130

124

135

Tons

Philippines

6

38

0

7

105

Tons

Brunei Darussalam

0

0

3

7

0

0

1000 square meters

Cambodia Viet Nam

0 38

0 150

0 152

0 524

No Quantity

No Quantity

Sources: ITC calculations based on UN COMTRADE and ITC statistics.

production of IGU. SADO glass factory is the sole unit in Vietnam to manufacture glass with absolute standard heat and insulation. The products that make the name of SADO Group include tempered glass, laminated glass, sound-insulated glass, heat-insulated glass, digitally printed ceramic colour glass, decorative glass, and fire-resistant glass. All products with premium quality are tempered by advanced machinery and technologies transferred

by LiSEC, Glaston, Dip-Tech, RAPID and Benteler, among others.

SADO has become one of the largest of its kind in Southeast Asia and is one of the most modern glass processing factories in the ASEAN region.

With its current scale, quality and influence, SADO Group continues to invest in human capital, equipment system and laboratory system, to research and develop new products, said the company.

SADO has a substantial range of import substitute products that helps Vietnam reduce glass import. Currently, with an annual production capacity of 18 million square metres of glass, SADO has become a leading supplier of construction glass in both volume and quality in Vietnam. “SADO Group is committed to be sustainable with efficiency and competitiveness, constantly diversifying business activities and expanding the market at home and abroad,” said Nguyen Cong Chinh, the key executive in SADO Group, The high-quality double and triple glazing IGUs made by SADO are processed from quality float glass, tempered glass, ceramic printed glass, laminated glass, Low-E glass and light reflective glass. Special IGUs are made with up to 3 steps and gas-filled units, for specialist applications.

SADO’s glass thickness ranges from 12mm to 60 mm. Air space thicknesses are 6mm, 9mm, 12mm, 15mm, 19mm, and 24mm. Maximum size, 2900mmx5200mm, minimum 180mmx350mm. Used gas types are, Argon, Crypton or Xenon. The high-quality materials for processing insulating glass are, silicone, polysulfide, butyl, profile bars and desiccants are imported from the USA and European countries.

SADO Group is now an important ASEAN exporter of IGU making Vietnam as number one exporter of IGU in ASEAN. Three other important exporters, Thailand, Indonesia and Malaysia are yet pick up export sales as they are concentrating more on the deficit domestic markets.

Exports of IGU from the ASEAN countries to the world markets has greatly improved to US$12.4 million in 2017 from US$3.756 million in 2012.

Vietnam became the largest single exporter in 2017 with exports of worth about a half of the total exports from the ASEAN region, steadily rising from a paltry US$0.1 million in 2013. Main export markets are, ASEAN countries, New Zealand, USA, Canada, ASEAN countries, Qatar, Japan and Brazil.

Imports of IGU into the ASEAN countries from the world markets

38

asianglass AG 19-1

Vietnam Float Glass Co Ltd (VFG)

(Viglacera Corp’s joint venture with Japan’s NSG Group and Toyota Tsusho Corp) Location: Phuong Lieu Commune, Que Vo District, Bac Ninh Province, Vietnam Total investment: US$126 million (commercial commencement in 1999) Products: IGU and processed glass, in addition to core product of float glass. Markets: Domestic and export markets Others: In joint venture, the largest shareholder, NSG Group, owns 55 percent shares.

Pilkington PLC UK in association with Vietnam Float Glass Co Ltd Vietnam (Both are owned by NSG (Nippon Sheet Glass Co) Group) Location: Phuong Lieu (Que Vo District), in Bac Ninh Province Products: IGU and other processed glass.

Markets: Domestic and export markets Others: Pilkington uses its own float glass and that of VFG for production and supply of IGU to building projects.

Eurowindow

Location: BCD Ly Nam De Str., Hoan Kiem, Hanoi, Vietnam Products: IGU and other processed glass.

Markets: Domestic and export markets.

Others: Eurowidow has three glass processing centers in Hanoi, Da Nang and Binh Duong. Eurowindow’s factories are equipped with modern automated production lines imported from leading suppliers of Germany, Italy, Finland and Spain. The factories produce mainly building glass.

SADO GROUP Vietnam. Photo credit SADO

www.asianglass.com

ANALYSIS: IGU

ASEAN IGU imports (tonnes) ASEAN Importers, IGU (Quantity)

2013

2014

2015

2016

2017

Imported quantity, Tons

Imported quantity, Tons

Imported quantity, Tons

Imported quantity, Tons

Imported quantity, Tons

No Quantity

No Quantity

No Quantity

No Quantity

No Quantity

Association of South-East Asian Nations (ASEAN) Aggregation

29,305

39,023

43,383

46,978

NA

Indonesia

4,730

6,790

9,850

12,227

11,334

Philippines

3,511

9,737

9,663

9,774

9,225

Malaysia

3,750

5,401

6,648

6,948

7,040

Thailand

5,051

8,701

8,714

7,734

6,180

Singapore

8,613

5,009

5,335

4,831

1,216

Cambodia

7

96

15

555

998

Lao People’s Dem. Rep.

94

33

112

86

259

Brunei Darussalam

217

204

680

292

195

Myanmar

1,253

683

506

311

153

Viet Nam

2,079

2,369

1,860

4,220

No Quantity

World

Sources: ITC calculations based on UN COMTRADE and ITC statistics.

declined to US$74.166 million in 2017 from US$77.717 million in 2016, and from US$96.747 million of 2015, following increased supply from the domestic manufacturers.

However, ASEAN’s largest IGU importing country Malaysia’s import spending rose to US$18.851 million in 2017 from US$11.422 million in 2016, and US$13.556 million of 2015. The region’s second, third and fourth largest importers, Indonesia, Thailand and Philippines’ imports declined in 2017 to US$14.741 million, US$14.467 million and US$12.449 million, respectively, from US$15.140 million, US$14.486 million and US$14.833 million, respectively, of 2016.

Main import sources are China and non-ASEAN countries. China supplies over 80 of the ASEAN requirements. Other major suppliers are, USA, Germany, India and South Korea.

Intra-ASEAN trade in IGU is very limited, worth around US$2 million a year at present, gradually reduced from US$8 million of 2015.

Low-emissivity

In ASEAN’s building boom, the issue has emerged of how to improve energysaving efficiency on the back of increasing fuel imports and power supply shortages. The regional countries are promoting energy saving policies for the large sized buildings, including those air-conditioned throughout the year. The demand is surging for IGUs and low-emissivity coated glass as low-E features solar control performance with solution for improving airconditioning efficiency and reducing energy consumption.

ASEAN region’s largest flat and processed glass manufacturers AGC, NSG, Saint Gobain and Guardian Industries said they will expand the lineup of energy-saving products that feature improved solar control and insulation performance, while maintaining high transmissivity of visible light. With the new facility. AGC will provide customers, including the IGU manufacturers and other glass processors, with products that meet their diverse needs for the performance and design of buildings with facades, curtain walls and IGUs, making a significant contribution toward reducing energy consumption.

IGUs, facades and window coatings reduce the amount of heat that passes through glass. To have balance between aesthetic appeal and energy

40

asianglass AG 19-1

Sunglass Safety & Energy-Saving Glass Industries Co Ltd (SUNGLASS) Location: B-10 Industry My Phuoc II, Binh Duong, Vietnam Products: IGU and other processed glass.

Markets: Domestic and export markets.

Others: SUNGLASS manufactures IGU and energy-saving glasses for exterior and interior applications in architectural and construction industries. The products include PROCOMFORT (insulating glass), in addition to other insulating glass and various tempered and laminated safety glass. It also markets imported insulting glass, low-e glass and reflective glass,

Indevco-Chu Lai Float Glass JSC (Chu Lai Glass)

Location: North Chu Lai Ind. Zone, Tam Hiep, Nui Thanh, Quang Nam Province, Vietnam Products: IGU and other processed and float glass.

Markets: Domestic and export markets Others: Indevco-Chu Lai Float Glass’ products include low-e IGU, double glazed glass, solar control glass and others.

ThuanThanh Glass Joint Stock Company (TTG)

Location: Dien Bien Phu, Hai Duong city, Vietnam Products: IGU and other processed glass.

Markets: Domestic and export markets Others: Uses float glass from Guardian (USA), Asahi (AGC) Belgium, VFG-NSG Group (Japan and Vietnam).

Vietnam Glass Group Co Ltd

Location: An Dong-An Duong District, Hai Phong, Vietnam Products: IGU, and other processed building glass, including pattern glass.

Markets: Domestic and export market Others: Vietnam Glass Group exports to different countries.

www.asianglass.com

ANALYSIS: IGU

efficiency, architects are increasingly turning to IGU and glass curtain wall construction. Glass can be well combined with other materials, such as, metals, natural stones, plastic coated metals, etc. This development raises the prospect of larger consumption of IGUs, according to the IGU manufacturers.

Industry sources said, the architects in the ASIAN countries face an increasing array of choices in specifying and designing with glass for building facades, as glass manufacturers and processors propose a greater variety of colors, textures and patterns than ever before. A wider range of coatings and treatments has also been developed, allowing for a finer selection of glass panes with a combination of light transmittance, reflectance and absorption to meet the needs of outstanding architectural projects. These options affect the aesthetics and energy performance of the glass and overall building.

In line with ASEAN bloc policy for green building and use of energy saving glass, including single and double-glazing performance reflective glasses, the glass companies are introducing a wide selection of energy saving glasses to continuously market a series of latest green products in addition to the existing ones. The demand for energy saving glass used in IGU and facades is expected to continue to grow as the public awareness of green products for building and the implementation of green building regulation by the public works and public housing ministries of the regional governments have been intensified.

The AGC-marketed current lines of energy saving glass include new Stopsol Supersilver, reflective online glass produced by latest online coating technology that offers better energy saving performance. Also introduced is AGC’s Sunergy Sigma, online solar control low-E glass with 3-layer coating technology that offers great visual image and best energy saving performance among its peers and maintain comfortable temperatures inside buildings.

Energy efficient and energy cost saving Sunergy Sigma series is a range of high performance pyrolytic solar control low-E glass, in a variety of colours, has been developed anticipating current architectural trends

CSG Malaysia IGU used in Singapore. Photocredit SCG

and offering improved solar control properties and brighter appearance.

It delivers low emissivity properties and thermal insulation and offers multiple processing possibilities, including IGU, and available for single glazing and IGU usage, and also for easy handling and processing for processors (no edge deletion required), as AGC claims.

Hai Long Glass

(Halon Glass brand) Location: Khu Cn Ha Binh Phuong, Thuong Tin, Hanoi, Vietnam Products: IGU, reflective glass , tempered and laminated safety glass, colour glass, and car glass.

Markets: Domestic and export markets

Glaco Joint Stock Company

Location: Bac Ninh City, Bac Ninh, Vietnam Products: IGU and other processed glass.

Markets: Domestic and export markets

Saigon Technology Glass Co Ltd

Location: Tan Dong Hiep Zone, Di An District, Binh Duong Province, Vietnam Products: IGU and other specialty glasses Markets: Domestic and export markets Others: One of the leading processed glass manufacturers in Vietnam

PT Asahimas Flat Glass Tbk

(An Indonesia-Japan joint-venture unit of AGC Group, Japan) Location: Bukit Indah Industrial Park, Cikampek, West Java, Indonesia Products: IGU panels, float glass, and processed glasses for IGU manufacturers.

Markets: Domestic and export markets.

Others: Asahimas float glass and its specialty Optima brand IGU panels are widely used for making IGU in Indonesia by glass processing industries.

Abebersa Pratama

Location: Jl Raya Narogong, Bekasi, Jawa Barat, Indonesia.

Products: IGU and other processed glass.

Markets: Domestic and export markets.

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

Roxy Glass

Location: Pusat Niaga Roxy Mas, JL. K.H. Hasyim Ashari 125 B, Jakarta, Indonesia.

Products: IGU and other processed glass.

Markets: Domestic and export markets.

PT Sinar Rasa Kencana

Location: Tangerang, Indonesia.

Products: IGU and other processed glass.

Markets: Domestic and export markets.

www.asianglass.com

AG 19-1 asianglass

41

ANALYSIS: IGU

SADO Vietnam triple glazing IGU. Photocredit Sado Group

Malaysian Sheet Glass Sdn Bhd

Malaysia IGU exports (value) Importers, IGU, from Malaysia

Exported value in thousand US$ in 2015

Exported value in thousand US$ in 2016

Exported value in thousand US$ in 2017

World

492

364

358

Singapore

290

113

147

Viet Nam

0

34

91

Thailand

115

17

36

0

38

25

19

37

20

Philippines

8

40

14

China

3

0

13

Brunei Darussalam

0

4

5

India Australia

Sources: ITC calculations based on UN COMTRADE and ITC statistics.

Philippines IGU exports (value) Importers, IGU, from Philippines

Exported value in thousand US$ in 2015

Exported value in thousand US$ in 2016

Exported value in thousand US$ in 2017

World

1

32

379

Japan

0

32

375

United States of America

1

0

3

Sources: ITC calculations based on UN COMTRADE and ITC statistics.

Singapore IGU exports (value) Importers, IGU, from Singapore

Exported value in thousand US$ in 2015

Exported value in thousand US$ in 2016

Exported value in thousand US$ in 2017

11,060

4,269

4,554

3,796

2,931

3,487

0

0

562

3,307

1,035

97

Canada

0

0

86

Maldives

14

5

71

0

0

54

China

16

5

48

Indonesia

54

92

29

200

41

27

0

5

24

3,490

46

24

87

0

21

0

0

7

10

20

4

World New Zealand Qatar Thailand

United States of America

Japan Myanmar Malaysia Philippines Hong Kong, China Australia

(Float plant of Japan’s NSG Group and associate of NSG-owned Pilkington PLC) Location: Pasir Gudang Ind Estate, Pasir Gudang Johor Darul Takzim, Malaysia Products: IGU and other processed lass and float glass.

Markets: Domestic and export markets.

Others: Malaysian IGU manufacturers use its float glass.

Crystal Safety Glass Sdn Bhd (CSG)

Location: Telok Gong Ind.Area, near Port Klang, Selangor state, Malaysia, Products: IGU and other processed glass Markets: Domestic and export markets Others: IGU configuration is 6mmx6mm glass with 12mm airspace.

Innoverre

Location: Jalan Ampang, 50450 Kuala Lumpur, Malaysia Products: IGU and other processed glass.

Markets: Domestic and export markets Others: Innoverre manufactures window and curtain wall IGU, insulating glass panels, and heated glass products for the architectural, refrigeration, food display, automotive, and other industries, specially, those who require transparent heater solutions.

Kien Safety Glass Sdn Bhd (Ksg)

Location: Kampung Jaya Industrial Aream Selangor Darul Ehsan, Malaysia Products: IGU and other processed glass.

Markets: Domestic markets.

Ajiya Safety Glass Sdn Bhd

Location: Lebuh Raya Segamat-Kuantan, Segamat, Johor, Malaysia Products: IGU and other processed glass.

Markets: Domestic and export markets.

HBR Malaysian Safety Glass Sdn Bhd

Location: 06000 Jitra, Kedah Darul Aman, Malaysia Products: IGU and other processed glass.

Markets: Domestic and export markets.

AGC Flat Glass Philippines Inc

Location: AGC’s Insulating glass project, Muntinlupa City, Philippines (Float plant location: Bo Pinagbuhatan, Pasig City, Philippines 1600).

Products: IGU and other processed glass, and primary float glass.

Markets: Domestic and export markets.

Others: Product types include 6mm low-e reflective coated, 13mm airspace, 6mm clear float, etc.

Sources: ITC calculations based on UN COMTRADE and ITC statistics.

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www.asianglass.com

ANALYSIS: IGU

Chain Glass Enterprises Inc (CGEI)

Location: Manila and Cebu, Philippines Products: IGU and other glass, mainly, tempered and laminated safety glass.

Markets: Domestic markets.

Others: CGEI provides full services for IGU. Besides its own glass processing operations, it also markets glass from various other local and foreign manufacturers. It has a project service to attend to specific glass and aluminum needs of architects, interior designers and property owners. Made up of a team of engineers, architects and interior designers, it provides management and glazing consultancy for medium and high-rise building projects.

Nanyi Glass Philippines Inc

SADO GROUP Vietnam IGU. Photocredit SADO Thailand IGU exports (value) Importers, IGU, from Thailand

World Lao People’s Democratic Republic Hong Kong, China

Exported value in thousand US$ in 2015

Exported value in thousand US$ in 2016

Exported value in thousand US$ in 2017

327

654

652

68

79

155

8

35

151

Singapore

10

73

123

Japan

11

69

45

Myanmar

3

3

42

Viet Nam

1

67

37

Maldives

0

16

22

Brunei Darussalam

0

8

17

Bangladesh

41

18

16

Cambodia

15

12

10

0

205

8

16

2

7

101

0

7

27

50

4

9

16

3

New Zealand Malaysia Philippines United States of America Sri Lanka

Location: Mauban St, Quezon City, Manila, Philippines Products: IGUs and other processed glasses Markets: Domestic and export markets Others: Nanyi Glass manufacturers window and curtain wall IGUs, insulating glass panels and various curved glass, flat toughened glass, curved toughened glass, laminated glass, bullet resistant glass, cut glass, etc.

Singapore Safety Glass Pte Ltd

Location: Pioneer Road, Singapore 639593, Singapore Products: IGU and other processed glasses.

Markets: Domestic and export markets.

Others: Singapore Safety Glass is a manufacturer of window and curtain wall IGU, insulating glass panels and other architectural glass products e.g. tempered, heat-strengthened, tempered heat-soaked, laminated safety glass, ceramic frit patterned glass, decorative laminated glass, bullet resistant glass, anti-slip glass, etc.

Glasia Pte Ltd

Location: Benoi Road, 629908 Singapore.

Products: IGU and other processed glass.

Markets: Domestic and export markets.

Others: Glasia is a processing plant, with a comprehensive range of window and curtain wall IGU, insulating glass panels and other architectural glass products supplied to customers throughout the Asia Pacific region.

Sources: ITC calculations based on UN COMTRADE and ITC statistics.

Vietnam IGU exports Importers, IGU, from Vietnam

World Philippines Lao People’s Democratic Republic Cambodia

Exported value in thousand US$ in 2014

Exported value in thousand US$ in 2015

Exported value in thousand US$ in 2016

377

399

1,240

0

0

738

25

81

219

139

21

129

Area Nes

4

3

100

Sri Lanka

0

0

40

Myanmar

193

206

7

Sources: ITC calculations based on UN COMTRADE and ITC statistics.

www.asianglass.com

Saigon Technology Glass IGU. Photocredit Saigon Technology Glass

AG 19-1 asianglass

43

ANALYSIS: Uttar Pradesh

The slow bu U-P glass growth fails to ignite

Despite all its demographic and geographic advantages, there is something about the glass industry of Uttar Pradesh that makes it considerably less successful than many of its counterparts. Although investment continues to climb, it seems as if the State cannot shake off a “small-time” tag, as Yogender Malik finds out…

W

ith a total area of 243,290 square kilometers, Uttar Pradesh is India’s fourth-largest state in terms of land area and is roughly of same size as United Kingdom. The state is home to 220 million people, making it India’s most populous state by far, as well as the biggest state inside a country in the world. Accounting for about 17 % of India’s population, Uttar Pradesh is home to more people than Pakistan and Bangladesh, some of the most densely populated countries in South Asia.

Despite the mammoth size and a sizable home market, the state has not been able to realize the full potential in the glass industry for a number of reasons. Glass industry in the state is not as big as in some of the other states in the country. But, a number of mid and small sized producers in glass industry from the state has been able to make their mark in domestic and exports markets. Glass industry in the state comprises of about two dozen glass processors (mostly based in and around Noida) and about 400 small scale units in Firozabad.

In particular, Firozabad based glass producers have upgraded themselves over the past couple of decades. A number of these units are producing sizable number of glass table wares, art wares and containers for domestic and export markets. In financial year 2017-18, Firozabad based glass producers have reported sales turnover of more than INR 18 billion. Though, there are more than 400 units in the Firozabad glass cluster, but about two and a half dozen producers account for about 75 % of the turnover of the cluster. These units have grown multifold in the scale and scope in the last two decades.

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Firozabad Glass cluster

Located around 40 kilometres from Agra in the state of Uttar Pradesh, Firozabad glass cluster occupies a special position in Indian glass industry as it accounts for 70% of the total glass production in MSME (Micro Small and Medium Enterprises) sector. Firozabad is famous for its exquisite production of glass works for more than three centuries. Popularly known as the Glass City, the town is steeped deep in the culture of making utility and decorative items of glass. The population of this city has been engaged in this for generations and the city has become synonymous with glassware. Every road, nook and cranny of this town bears the mark of glass industry.

The Firozabad glass-making industry came into the limelight a couple of decades back, when the Supreme Court of India ordered 292 coalbased factories in the area known as the TTZ ( Tajmahal Trapezium Zone, including the Firozabad pot furnace units, to switch from coal to cleaner alternative fuels such as natural gas, or else to relocate or shut down.

Around that time, chimneys bellowing black smoke from dilapidated glass factories with little sign of industrial modernisation dotted the entire space of Firozabad. However situation has changed dramatically in the intervening years. Today, it is gradually moving towards becoming an important centre of glassware manufacturing in India. Some of the glass products manufactured are glass containers, table wares, glass toys, candle stand, Christmas hangings, flower vase glass, chandeliers, bangles, automobile ware, street ware, scientific lab products, etc.

Firozabad has an international reputation of being the world capital for beads manufacturing. These beads are exported outside India and are

www.asianglass.com

ANALYSIS: Uttar Pradesh

urn… used in clothing, shoes and other accessories. There are a huge number of glass units engaged in the production of different glass products such as glass container, table wares, art wares, automotive headlights, and railways signal glasses. Glass bangles (a type of ornament) in India are almost exclusively produced in this cluster. Apart from basic glass production units, there are a large number of tiny units at domestic level in surrounding villages that are involved in various finishing operations of these glass products.

Capacity increases

During last five years, Firozabad based producers have added a significant capacity in glass table wares and containers. In fact, last year’s ruling on imposition of anti-dumping duty of table ware glass from China and Indonesia was supported by glass table ware producers (Pooja Glass Works Pvt. Ltd., Meera Glass industries, Firozabad, Adarsh Kanch Udyog Pvt. Ltd., Uma Glass Works and New Bright Glass Works lndia Pvt. Ltd) from Firozabad cluster. Despite their modest scale of operations, collectively these (above mentioned) producers have become sizable producers of glass table ware products. Currently, another six (existing) producers are under planning and executing stages of setting up new production facilities for tableware and container glass in the town.

Exports of glass table ware and art ware from Firozabad has registered steady growth in recent years. Acquisition of modern technology by some of the existing producers have enabled them to compete with the established producers of glass tableware in the country. Glass products (mostly tableware and art ware) from Firozabad based producers can be

www.asianglass.com

seen at a number of shops in all the markets of Delhi and Northern India.

In fact, the focus market for a number of producers have been the small towns in the Northern part of the country, where consumers are very price conscious.

Mention of Firozabad cannot be complete without mentioning the glass bangles in the town. In fact, Firozabad got its tag of Glass Town because of the huge number of bangle making units. During 1980’s, about 80- 85 % of the output of Firozabad glass industry was in the form of bangles. Lower usage and entry of plastics and other materials in bangle making has decreased the volume of glass bangle production over the years. Changeover to natural gas as a fuel has reduced the total number of bangle units drastically in last two decades, but still more than 100 units are producing bangles in the town. Labour Associations in the town still claim that bangle making is the backbone of Firozabad’s glass industry.

These unions put the total workforce in bangle making units close to 200,000. According to Chemical & Allied Export Promotion Council of India (Capexil) data, Firozabad alone produced more than INR 2.8 billion worth of glass bangles in the financial year 2016-17.

Geeta Glass Works

Operating in container glass industry since 1970’s, Geeta Glass Works is a small sized container glass producer with an installed capacity of 80 tonnes per day of container glass. The company caters to container glass demand of mid-sized liquor and food producers. Located at Industrial Estate, Dholpura of Firozabad, the company achieved a capacity utilisation of 90 % and 92 % in financial years 2016-17 and 2017-18, respectively.

AG 19-1 asianglass

45

ANALYSIS: Uttar Pradesh

Major glassware producers based in Firozabad

Geeta Glass Works achieved a sales turnover of about INR 455.4 million in the financial year 2017-18. About 30 % of the company’s sales comes from the sale of container glass to two of the largest alcoholic beverage producers - United Spirits India and Pernod Ricard India Limited. According to the company’s management, “ Supply of container glass to the two of the most popular names in Indian liquor industry is testament to the fact that Firozabad based glass producers are second to none in terms of quality.”

According to Anurag Mittal, founder Chairman and CEO of Geeta Glass Works, “Glass producers based at Firozabad have been able to upgrade scale and scope of their operations in recent years. Availability of natural gas for the glass industry in last decade has played a key role in the faster development of industry in Firozabad. Though, many in the industry still associate Firozabad with glass bangles and low quality glass artefacts, but a number of producers in this town are producing high quality glass containers and tableware products.”

Girdharilal Manoharlal Glass Works

Established in 1977 to manufacture tableware glass, Girdharilal Manoharlal Glass Works, popularly known as GM Glass is one of the oldest and largest glass producers based in Firozabad. Company’s tableware and ancillary units produces a wide range of glass products that include tumblers, tableware, headlight covers, glass refills etc. Company’s sister concerns (Hilite Glass Industries, Okay Glass Industries, C.A. Glass Works and Alok Glass Works) market their products to corporate clients and are OEM suppliers of headlight covers to all renowned cos. Like Lumax, Autopal, Minda, Fiam, Hella and glass refills to Milton, Cello and Eagle etc.

In 2013, the company diversified in container glass industry by installing a 150 TPD container glass unit. Supported by five production lines, the container glass division produces glass containers for food and beverage industries. Currently, the company has a total installed capacity to produce 200 tonnes of container and tableware glass from its two units. In FY18, the company achieved an operating income of INR 590 million against INR 527 million in FY17.

Industrial & Building Glass Industries

Industrial & Building Glass Industries started with production of glass bangles and was in same production line till 2017.

The company installed a container glass production line with an installed capacity of 70 tonnes per day in the year 2018.

The firm has an arrangement with GAIL for supply of gas for its production process. The Company plans to sell its products to the bottling plants and breweries in India and Nepal. Some other companies in the town, such as Maheshwari Glass Industries, Mittal Ceramics, and Rachana Industries, who are all engaged in glass tableware and art ware production are sister concerns of Industrial & Building Glass Industries.

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Company

Location

Products

Installed capacity

Adarsh Kanch Udhyog Limited

Firozabad

Glass tubes

12 TPD

Advance Glass Works

Firozabad

Glass Tableware

15 TPD

Advance Lamp Component & Table Wares Pvt Ltd

Firozabad

Glass table ware

2000 MT/ annum

Alok Glass Works

Firozabad

Glass table wares

45 TPD

Crown Glass Industries

Firozabad

Glass art ware and flasks

12 TPD

Durgesh Block & China Glass Works

Firozabad

Glass tableware, containers for perfume & cosmetics

18 TPD

Farukhi Glass Industries

Firozabad

Glass containers and table wares

110 TPD

Firozabad Ceramics Pvt Ltd

Firozabad

Glass containers and table wares

120 TPD

Firozabad Glass Shell Industries

Firozabad

Geeta Glass Works

Firozabad

Glass containers

80 TPD

General traders

Firozabad

Glass handicrafts & art wares

16 TPD

Girdharilal Manoharlal Glass Works

Firozabad

Glass containers and table wares

150 TPD

Hilite Glass Industries

Firozabad

Jagdamba Glass Works

Firozabad

Kwality Glass Works

Firozabad

Meera Glass Industries

Firozabad

Glass table ware and bangles

23 TPD

Millenium Glass Industries

Firozabad

Glass table wares and glass handicrafts

16 TPD

Mittal Ceramics

Firozabad

Glass containers

70 TPD

New Bright Glass Works India Limited

Firozabad

Om Glass Works

Firozabad

Glass containers and vacuum glass refills

38 TPD

Pankaj Glass Works Limited

Firozabad

Glass table wares

25 TPD

Nannumal Glass Works

Firozabad

Glass containers and table wares

28 TPD

Om Glass Works

Firozabad

Glass containers and table wares

30 TPD

Okay Glass Industries

Firozabad

Glass Table wares

18 TPD

Pankaj Glass Works

Firozabad

Glass containers & table wares

24 TPD

Pooja Glass Works

Firozabad

Glass table wares

40 TPD

Pragati Glass Works

Firozabad

Glass table ware

42 TPD

Shri Sitaram Glass Works

Firozabad

Glass containers

30 TPD

Tiger Son Glass Industries

Firozabad

Bulb shells and glass tubes

18 TPD

Uma Glass Works

Firozabad

Glass table ware

22 TPD

Vaibhav Glass Industries

Firozabad

Glass Table ware

20 TPD

18 TPD Automotive headlights, silver vacuum flask and glass art wares

14 TPD

20 TPD

www.asianglass.com

ANALYSIS: Uttar Pradesh

Farukhi Glass Industries (FGI)

One of the older companies from Firozabad, which was engaged in bangle and art ware glass products, Farukhi Glass Industries ventured into container glass production by establishing a 110 tonnes per day plant at the start of this decade. Farukhi Glass acquired this turnkey plant from Mumbai based technology supplier, Shamvik Glasstech Private Limited. The company reported a sales turnover of INR 688 million in Financial Year 2017-18.

Pioneer Glass Industries (PGI)

Established in 1978, Pioneer Glass Industries (PGI) has been manufacturing double walled glass liners (glass refills) used in vacuum flasks. The company claims to have a total of 25% share of entire glass refills market in India.

Owner cum CEO of the company, Rohit Aggarwal says, “Pioneer Glass Industries (PGI) is spread over 600,000 sq. feet of land. The plant has top class glass refill manufacturing facilities along with tank furnace, silvering and vacuuming facilities that are up to the international standards. We have acquired German technology (Einedrucker) which has enabled us to produce high quality products. We serve about 25 % of the domestic demand of glass refills in thermos bottles. Our quality has enabled us to secure a number of customers in export markets.”

Role of government and authorities

In addition to the efforts of glass entrepreneurs based in Firozabad, various authorities and organisations have played a key role in enabling the town’s glass industry to become competitive. Till the mid of first decade, coal was the predominant source of fuel used by most of the glass units in Firozabad.

However, Supreme Court’s intervention made to possible for natural gas pipeline to be laid in and around Firozabad, which has enabled a number of glass producers to enhance their product quality in last one and a half decade.

Glass products exports from MSME segment Products

FY 2013-14

Electrical insulator of glass Glassware

FY 2014-15

FY 2015-16

FY 2016-17

1.64

2.00

1.07

1.08

258.98

291.29

276.29

241.06

2.91

1.75

1.30

2.29

20.12

20.47

21.35

27.70

9.61

6.99

11.50

20.75

Glass bangles Glass beads and false pearls Glass lampwares Glass phials/bottles

170.11

194.78

209.14

192.21

Opthalmic blanks & lenses

22.86

22.94

23.42

24.57

Scientific glassware

14.83

16.89

19.21

18.11

Signalling glassware

0.23

0.69

0.66

0.41

Table/kitchenware of glass

11.49

11.14

11.76

14.49

1.85

1.41

1.43

1.48

Vacuum flasks

Source- Chemical & Allied Export Promotion Council of India (CAPEXIL)

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asianglass AG 19-1

FIROZABAD HAS AN INTERNATIONAL REPUTATION IN GLASS BEARS Advance Glass Works

Location: Firozabad Markets: Domestic and Export Markets Others: Producer of glass tableware, art ware and glass handicrafts products.

Adarsh Kanch Udhyog Pvt Ltd

Location: Firozabad Markets: Domestic and exports Products: Glass tubes, containers and bulbs Others: The company is engaged in production of lead glass and soda glass tubing and glass containers since 1998. Adarsh Kanch Udhyog has an installed capacity of more than 10,000 TPA. The company operates three furnaces (2 regenerative and 1 cross fired) in total.

Meera Glass Industries

Location: Firozabad Products: Tableware glass Markets: Domestic & exports.

Others: Engaged in glass production since 1988, Meera Glass Industries produces glass tableware and bangles. The company has two regenerative tank furnaces and seven automatic machines at its plant.

Durgesh Block & China Glass Works

Location: Firozabad Products: Artware glass and tableware glass.

Markets: Domestic & export markets.

Firozabad Ceramics Private Limited

Location: Firozabad Products: Tableware and container glass Markets: Domestic and export markets.

Others: Firozabad Ceramics Private Limited is among the largest glass producers in the town with an installed capacity of 120 tons per day of container glass.

The company is engaged in the manufacture of glass ware, table ware, PET jars to name a few and caters to restaurants, pharma companies, cosmetic companies among others.

www.asianglass.com

XXI EDIZIONE

fieramilano 1 - 4 OTTOBRE 2019

ANALYSIS: Uttar Pradesh

Farukhi Glass Industries

Location: Firozabad Products: Tableware and container glass Markets: Domestic and export markets.

Others: One of the older companies from Firozabad, which was engaged in bangle and art ware glass products, Farukhi Glass Industries ventured into container glass production by establishing a 110 tonnes per day plant in 2011.

Geeta Glass Works United Nation’s agency, United Nations Industrial Development Organisation (UNIDO) and Centre for the Development of Glass Industry (It is joint venture project of Government of India, State Government of Uttar Pradesh and United Nations Development Program/United Nations Industries Development Organization) have helped Firozabad based glass producer to adopt to cleaner technologies.

According to Mukesh Kumar Bansal, CEO of Sitaram Glass Works, “There is no dearth of opportunities here. Firozabad’s glass industry has immense growth potential. Labour is cheap and raw material is easily available.

Roughly 50% of the industrial land is owned by Uttar Pradesh State Industrial Development Corporation (UPSIDC). Availability of private land is also not an issue for new entrepreneurs in the glass industry or towards expansion by existing producers. There has been a huge improvement in general infrastructure and fuel availability in last few years. All in all, government and authorities have been very supportive in the development of glass industry in the cluster.”

On the flip side, glass producers based in the town have often complained about the natural gas prices. Currently, around 214 glass units are operating on natural gas, while at least 30 to 40 units are awaiting release of gas supply. Akash Jain, producer of glassware under the name Eagle Glassware, says, “Our plant runs on natural gas. But there are a number of small producers who are not able to pay huge amount for fuel. Government should lower the price and make the terms more lenient.”

Processing on the rise

Proximity to national capital Delhi has enabled a number of glass processors set up their glass processing units in the areas adjoining Delhi. Noida, Greater Noida and Ghaziabad has seen at least two dozen new glass processing units in last ten years. These units are catering to processed glass demand in their respective areas and National capital.

GSC Glass

Greater Noida based GSC Glass is one of the largest glass processors based in India. The company also operates a processed glass manufacturing facility near Mumbai. Often credited with popularising the use of processed glass in India, the company has supplied processed and value added glass to a number of prestigious construction in India and overseas markets.

50

asianglass AG 19-1

Location: Firozabad Products: Container Glass Markets: Domestic & export markets.

Others: Geeta Glass Works is enagaged in glass production since 1971. Currently, the company has an installed capacity of 80 tonnes per day of container glass. The company supplies container glass to leading liquor producers in the country. Geeta Glass Works exports about 10 % of its output to the Middle East countries.

Girdharilal Manoharlal Glass Works

Location: Firozabad Products: Tableware and container glass Markets: Domestic & export markets.

Others: With an installed capacity of about 200 tonnesper day, Girdharilal Manoharlal Glass Works is among the largest glass producers in Firozabad. Prior to the company’s entry in container glass in 2013, company was producing tableware glass for domestic market. In 2013, the company diversified in container glass industry by installing a 150 TPD container glass unit. Supported by five production lines, the container glass division produces glass containers for food and beverage industries.

Company’s sister concerns :Hilite Glass Industries, Okay Glass Industries, C.A. Glass Works and Alok Glass Works: are OEM suppliers of headlight covers to major companies such as Lumax, Autopal, Minda, Fiam, Hella and glass refills to Milton, Cello and Eagle etc.

Mittal Ceramics

Location: Firozabad Products: Container glass Markets: Domestic and export market Others: Engaged in glass production since 1978, Mittal Ceramics is a container glass producer with an installed capacity of 87 tonnes per day. The company operates one furnace and five production lines.

According to company’s management, the company exports about 40 % of its output to different countries.

www.asianglass.com

ANALYSIS: Uttar Pradesh

Triveni Glass Limited

Allahabad (name of the city has been changed to Prayag Raj in November 2018) based Triveni Glass Limited is one of the three major figured glass producers in India. The company, which commenced commercial production of figured glass in 1976 at its Allahabad facility added two more vertical drawn sheet plants, a figured glass plant at this factory in later years and added two new factories-to manufacture neutral glass tubes at Meerut (U.P.). Subsequently, Triveni Glass set up two plants to produce figured glass at Rajahmundry (in the state of Andhra Pradesh).

In a bid to improve the profitability of the Company, Triveni has closed down its factory at Allahabad and hived off the factory at Meerut. Currently, Triveni Glass operates two plants at Rajahmundry manufacturing clear & coloured figured glass in over 25 patterns and seven tints.

In financial year 2017-18, the company achieved sales revenue of INR 656.8 million. The sales revenue declined by 12. 49 % in the financial year, against a sales figure of INR 750.1 million achieved in 2016-17.

Production during 2017-18 was 13.86 million square meters (based on 1 mm thickness) as against 17.82 million square meters registered in the previous year.

Om Glass Works

Location: Firozabad Products: Tableware and container glass. Silver coated vacuum glass refills.

Markets: Domestic and export markets.

Pooja Glass Works

Location: Firozabad Products: Tableware and art ware glass.

Markets: Domestic & export markets.

Others: The company produces one of the widest range of tableware glass in blue colours. Pooja Glass also produces candle holders, decanter, brassware with combination of glass ware and gift ware glass products.

In 2016:17, the company achieved a sales turnover of more than INR 300 million.

Glass processors based in Uttar Pradesh Company

Location

Products

Loni

Tempered Glass

Axis Glass

Sahibabad

Tempered glass

Birkan Engineering Industries Limited

Sahibabad

Tempered and insulating glass

Noida

Tempered and insulating glass

Greater Noida

Tempered, insulating, sun control, laminated and various value added glasses

Meerut

Tempered and insulating glass

Sahibabad

Tempered glass

Meerut

Tempered and insulating glass

Allahabad

Tempered , insulating and laminated glass

Kausar Glass

Meerut

Tempered glass

Mehr Image Private Limited

Noida

Tempered and insulating glass

Nanda Glass Industries

Noida

Tempered and insulating glass

Orotuff Glass Private Limited

Greater Noida

Tempered glass

Paragon Roofing Industries

Meerut

Tempered glass

Prolific Glasses Private Limited

Ghaziabad

Tempered glass

Rozy Glass

Moradabad

Tempered glass

SK Tuff Pvt Ltd

Greater Noida

Tempered and insulating glass

SS Industries

Noida

Tempered glass

Lukhnow

Tempered and insulating glass

Aditya Glass Industries

Bhagwati Glass Products GSC Glass Industries Glass and Glass Glow Shine Glass Industries Pvt Ltd Gudex Glass Industries Pvt Ltd Hindustan Glass Works

Structural Insulation & Glazing Private Limited

These glass processors cater to almost 70 % of the processed glass demand of National Capital Region.

www.asianglass.com

AG 19-1 asianglass

51

ANALYSIS: Sri Lanka

Changing outlooks

Sri Lankan processors cashing in…

Rohan Gunasekera looks over the country’s rooftops and assesses how the constantly evolving skyline of all the towns and cities is becoming indicative of a rapidly expanding glass processing sector…

T

he constantly changing skyline in Sri Lanka’s capital Colombo and its suburbs, as well as other cities on the coast and interior, with new high-rise buildings mushrooming almost overnight, along with increased urbanisation, should spell good business for the handful of flat glass processors on the island. Indeed, several of them have expanded in recent years, adding new machinery and processing capacity, and plan to expand even further with more investments.

The construction sector has been one of the main engines of growth for the island economy, in most of the 10 years after the end of its 30-year ethnic war, the Tamil Tiger separatist struggle. The peace has led to more prosperity, with the island elevated to lower middle income status, and real estate one of the fastest growing sectors.

A lot of investment, local and foreign, has flowed into high-rise hotels, both in Colombo and elsewhere, and office and apartment blocks, along with shopping malls. Sheets of glass, much of it tinted, now meets one’s eye wherever one turns in Colombo.

Ranjith Gunatilleke, President, Chamber of Construction Industry and managing director of Sanken, a construction firm, estimates there are more than 30 buildings being built going over 30-40 stories all of which will have facades.

Even tempered

Most of the demand is for conventional tempered glass but there is a steady and growing demand for smart glass, like low-e glass, given its energy and cost saving attractions, although price is a constraining factor. There is growing realisation of the energy saving potential of such types of glass, partly the outcome of outreach

52

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measures by a few multinational glass manufacturers. Architects and construction companies themselves are more aware of their potential and are making use of them in selected projects. While energy saving measures in new buildings is yet to be made mandatory by government regulation, there are both government and private sector initiatives to promote ‘green buildings’, given their obvious longterm advantages in a tropical country like Sri Lanka.

Environment Consultant Mahendra Jayalath says that sometimes it is very difficult to convince clients to use proper glass. “They always think glass is a secondary thing,” he says. “Investors don’t realise having proper glass, proper structure – not only reduces energy but also investment because equipment is more appropriate. Air-conditioning accounts for 60% of energy consumed in most high rise buildings. Energy efficient building codes are coming in the next 12 months. They will be voluntary for one year and then mandatory for all high-rises - light fittings, air-condottioning and glass.”

The market remains highly competitive given the large volumes of imports which puts pressure on pricing. Sri Lanka has a single container glass manufacturing plant, part of India’s Piramal group, but it does not have a float glass plant. There are six flat glass processors - Orient Gold Plus, Orient Gold Plus Projects, Globe Glass, Gurind Accor, SG industries and A.N.T. Glass & Fittings (Pvt) Ltd. There appear to be conflicting views about the prospects for a float glass plant. Some in the industry are enthusiastic about it, albeit with foreign investment – the Chinese have been approached. Others raise doubts about the commercial viability of a float glass plant given concerns over the availability of enough, high quality raw material, silica sand, and Sri Lanka’s very high electricity costs compared with competitors. Nevertheless, planned investments in property – hotels and office and apartment blocks,

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ANALYSIS: Sri Lanka

and shopping malls as well as industries - offer huge opportunities for glass processors and importers.

FDI shortfalls

Sri Lanka has been trying hard to attract foreign investments since the end of its ethnic war. But inflows have been below expectations. This is partly because of political instability, generated by infighting among major political parties that results in bouts of policy uncertainty and persistent delays in addressing minority Tamils concerns that originally triggered the fighting. Bureaucracy also deters investors, especially foreign ones, although the government is making vigorous efforts to remove quite a lot of red tape.

Most of the investments come through the Board of Investment, the investment promotion agency that grants concessions like tax holidays and import duty exemptions, the latter for long a serious bone of contention for local industrialists like glass processors. Much of the investment that has taken place since the war’s end and planned for the medium term is in hotels, office and apartment blocks, and shopping malls to meet demand arising from a sharp increase in tourist arrivals and for better working and living environments generated by an expanding business community and rising incomes.

Two of the biggest projects that will affect the property market, and in turn increase demand for glass façade by several orders of magnitude, are Colombo’s Port City project, an entirely Chinese-funded, planned and executed reclamation work, and the Colombo Western Region Megapolis project that will turn the capital and suburbs into a modern metropolis expected to house

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more than eight million people by 2040.

The Port City project will create a brand new, modern city just off Colombo’s existing Galle Face Green promenade and next to the expanded new Colombo South Harbour. Indeed, the reclamation project only takes advantage of the natural accumulation of sand created by the construction of the breakwater of the new harbour, an Asian development Bank-funded project which has elevated Colombo port’s status as a transhipment hub for South Asia, making it the only one yet capable of handling the mega-container carriers that need deep-draft. The project has added 269 hectares to the country’s landmass following completion of dredging by Chinese investor CHEC Port City Colombo Ltd., a unit of China Harbour Engineering Corporation.

Varying demand

Demand for glass comes from a wide range of sources - from apartment blocks and hotels, to residencies and industries. Yet despite the opportunities offered by the construction boom, which has slowed down more recently after the latest bout of political instability, glass processors continue to complain they are not getting enough business and their capacity is still not fully used.

This is because most big projects, especially the high-rise buildings, use glass imported duty free. Any building below 10 floors, the project developers will use locally supplier processed glass. But bigger projects, which usually get duty free benefits, tend to import all their requirements. There is also some leakage of duty free imports as some firms which apply for duty free imports tend to exaggerate their requirements and sell the surplus locally.

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ANALYSIS: Sri Lanka

Another problem faced by local glass processors is that Sri Lanka does not have the technical capacity for some of the services architects and construction firms need, like wind tunnel testing to check wind loads on glass facades in some of the taller high rise buildings. These tests have to be done overseas, so it is easier for project proponents to import their glass as well.

Ashad Hussain of Orient Gold Plus group has branched off from the parent Orient Gold Plus (Pvt) Ltd. where his father introduced the island’s first glass tempering machine and set up his own firm called Orient Gold Plus Projects (Pvt) Ltd. where he is managing director.

He has added three more lines to the group’s processing capacity with an investment of around Rs 250 million in new plant. A tempered glass manufacturing furnace that is bigger and of better quality now enables processing of coated glass like solar controlled glass, low-e glass, reflective glass, and hard coated and soft coated glass. This can also process lager size tempered flat glass and larger size bended glass. The company, which initially processed only 3.66 metre x 2.44 metre (12 feet x 8 feet) flat glass can now process 4.2 m x 2.44m (14 feet x 8 feet) glass.

“And we can now make larger curved glass - going up to 10 feet in height and eight feet in width,” he told Asian Glass. “This was our second factory. My forced convection furnace was required to start my lamination line. I needed a brand new machine to process laminated glass so I bought a lamination line, one of the best from China. We can do 4.2m x 2.4m (14 feet x 8 feet) glass on the lamination line.

For laminating glass we need good quality furnace to apply the PVB film interlayer used for the lamination process. My father started the first tempering plant in Sri Lanka. I started the first lamination line in Sri Lanka because that is the next thing in glazing after tempered glass.

“The third line we bought was a double glazing insulated glass line of 3m x 2 m. Earlier we had only a tempering plant with ancillary machines like heat soak furnace and shape edge machines. Now we are well equipped with all the machinery. So we can cater to complex building requirements.”

Orient Gold Plus has around 100,000 square metres a year capacity in the tempering plant. It also has lamination capacity of 70,000 sq m a year and double glazing capacity of about 50,000 sq m/ year.

Table 1 2014 2015 2015 2017

INFLOWS OF FDI HAVE BEEN BELOW EXPECTATIONS 100,320,094 43,588,099 7,752,219 6,322,675

Float glass imports (sq metres)

Political issues

Demand for glass slackened after the political uncertainty last year which culminated in President Maithripala Sirisena suddenly sacking his Prime Minister Ranil Wickremesinghe and replacing him with former president Mahinda Rajapaksa and then dissolved parliament in October 2018. Government and business slowed down drastically with two contenders for the premier’s post, triggering uncertainty and credit rating downgrades. The crisis was resolved in December 2018 when the supreme court declared Sirisena’s action illegal and restored the status quo.

“There was a huge drop in demand in the past six months due to the political situation,” Hussain says. “Currently, we see 60-70% drop in business. New projects are not taking off. What we see are only projects already approved that are being completed. Even housing projects have slowed down. The government is also limiting funding because they fear an oversupply of apartments.”

Orient Gold has seen a big drop in sales. “We’re currently running only 3040% of capacity in the tempering plant alone,” says Hussain. “We feel it cannot go any lower.”

The industry hs also taken a hit from the sharp depreciation of the rupee against the US dollar, which sent up prices of imported glass. “The rupee fell from 160 to the US dollar to 185,” says Hussain. “That was a huge hit because all our raw material is imported. We import float glass every month. There was a 20% increase in price in 2-3 months. But now the rupee is stabilising. However, we are still charging the same prices as we are competing with imported products. Our electricity and labour are very expensive.”

One of the main problems facing local glass processors is the large scale duty free import of glass for property projects that are approved by the BOI and get tax and other benefits. Such BOi projects, especially hotels and apartment blocks, enable their promoters to import most of their material requirements duty free with the result that most of the glass façade in these high-rise buildings are

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Table 1 2014 2015 2015 2017

89,305,552 14,351,524 3,629,623 1,471,639

Float glass imports from India (sq metres)

1

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ANALYSIS: Sri Lanka

imported either from China or India. Even labourers are Chinese, partly because of a Sri Lankan construction labour shortage.

Hussain says the glass processors are lobbying the government for protection against such duty free imports and suggest imposing a cess on such imports to safeguard local industry which has the capacity to supply glass to these buildings.

New machinery he has imported are now able to provide better quality product, he notes. “Now this industry is surviving only because of this retail business – homes, small businesses like shops.”

Orient Gold Plus group has supplied glass for a few big projects. It has contracted with John Keells Holdings, Sri Lanka’s biggest listed conglomerate, to supply shower cubicles - processed tempered glass - for its Waterfront Integrated Resort, a multi-million dollar mixed development property project, the biggest under construction. Orient Gold is also supplying shower cubicles to the Havelock City apartment complex.

Prospects for float?

Hussain is enthusiastic about the prospects for a float glass plant in Sri Lanka. His company even did a feasibility study as far back as 2010 when there was demand of 30 tonnes a day. “If we set up a float plant in Sri Lanka, we need government support for it to be viable – land for the factory and cess on imports to protect local industry, like they have done for mirror manufacturing firms all these years. We are asking for a cess on tempered, laminated glass.”

Hussain estimates a float glass plant will cost around Rs3 billion, an investment which local industrialists alone cannot make. He has held talks with Chinese suppliers for them to invest with their machinery in a float glass plant. Hussain believes there is potential to export flat glass to southern Africa and southern India, where there is huge demand for float glass. Although glass is a bulky and fragile material, freight costs are not that critical in overall costs. Even now Africa is importing glass from China. Studies have shown very good quality sand in Nattandiya on Sri Lanka’s west coast.

Silica sand of 80% to 99% SiO2 occurs as economic deposits at Marawila, Nattandiya, Madampe, Sinnapadu and Vallipuram in Jaffna peninsula. “The problem is the energy price,” Hussain says, noting that the island has one of the highest energy costs in the region.

Hussain says demand for smart glass like low-e glass is growing.

Manufacturers like Saint Gobain which has plants in India, have been reaching out to end-customers in Sri Lanka and educating architects and building contractors on the virtues of such glass. “People now understand the cost benefits of using coated glass.”

Orient Gold Plus Projects is now working on what it calls is the biggest curved façade in the island for a show room by No Limit, a clothing retailer.

Glass facades of 10 x 8 feet are required for the building with a height four storeys and 100 feet in width.

Nilanka Mendis, Quality Assurance Manager of Gurind Accor, describes the market as “bad” right now. Although there are signs of construction everywhere, “most of the processed glass is coming from India and China,” he told Asian Glass.

Gurind Accor, originally a unit of India’s Gurind, is now part of the Browns Group, one of the island’s oldest mercantile establishments under a deal which enables the original brand name to be used. Gurind Accord is certified for Guardian, Saint Gobain and Pilkington.

Mendis believes much of the imported glass is not up to international quality, either because the raw material, silica sand, is not the best, or float glass manufacturing standards that are not up to the mark. “Poor quality glass we cannot temper in our tempering plant. The green colour is more which means iron particles.”

Gurind Accor has a tempering capacity of 600 sq m a day or 14,000 sq m / month, although that depends on the thickness of the glass being processed.

It is also equipped with CNC cutting machine and CNC Water jet machine and fully automatic grinding machine to ensure the delivery of best quality.

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Table 1 2014 2015 2015 2017

874,508 2,186,822 2,088,400 1,776,467

Float glass imports from China (sq metres)

Table 1 2014 2015 2015 2017

46,735 385,139 191,896 1,067,055

IGU imports (Kg)

1

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ANALYSIS: Sri Lanka

Browns group, which has bought the plant, has plans to expand the factory by year-end and bring what will be the largest tempering plant to Sri Lanka with a capacity of 1,000-1,200 sq m a day capable of processing bigger sized glass. The supplier is China’s North Glass.

The present 10-year old plant has a bed size of 5100mm x 2050mm (16 feet x 6.75 feet). The new double convection system will be useful especially for tempering coated glass that cuts down UV radiation, allowing light while cutting heat, whose demand is growing.

“Now we temper solar reflective glass – the new trend because of energy saving attributes,” Mendis says. “There is demand from projects like five start hotels for solar reflective glasses. Also hotels going for renovation - every five years they change – they are now going for double glazed and coated glass which provide energy saving properties. They can cut down 60% of air-conditioning costs. In future there will be more demand for glass walls because of the view and ability to cut down solar UV.” Mendis anticipates demand will grow given the planned real estate projects like the Port City. “When the Port City and other projects come we may not be able to meet demand,” he says. “But existing processors can meet 75% of the requirement now. Unfortunately there is not enough government support to provide protection against cheaper, duty free imports.”

Mendis says that projects in the high end category like hotels and rich individuals tend to go for high end glass to ensure reputation is maintained while those at the low-end market use clear float glasses.

“But now the trend is for high rise buildings to convert to coated glass – the market is shifting from cheap, normal float glass to more expensive high end products. Tinted glass is going to be obsolete. The new trend is coated glass. Tinted glass when use for facades transmits heat while coated glass reduces heat transmission. Their initial cost is more but the long term benefit are better.”

Gurind Accor even exports some processed glass, mostly to the Maldives. Big projects to which it has supplied façade glasses and shower cubicles locally include cricket stadiums at Khettarama, Pallekele and Suriyawewa and the Nelum Pokuna state performance hall along with hotels like the Taj Samudra, Emerld Bay, Peacock, Citrus and the JW Marriot in Sri Lanka.

S.G. Industries, which started as an importer and wholesale and retail supplier of glass and mirror sheets, now boasts that it has the island’s only European made tempering machines – two made by Glasston in Finland. It has a bevelling machine from Italy.

S.G Industries director Gemunu Wanigasekera said the firm supplies contractors like construction firms, and not direct to projects. Tempering capacity is about 2,000 sq m/ day for glass of 4mm to 19mm. “The market has slowed down. Government payments to construction companies have slowed down, so our payments also get delayed.” He too blames large scale duty free imports from projects which enjoy tax concessions. The sharp depreciation of the rupee has hurt forcing glass processors to reduce margins as there is fierce price competition.

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ANALYSIS: Container glass

Return of the D Will China emerge from a long winter?

As 2019 gets into full swing, we look back in conjunction with the China Glass Network at what state the pressures of the previous 12 months have left the Chinese glass market in.

G

lass spot market in Eastern China inclines to be stable with steady production and sale ratio in recent. Some manufacturers in Eastern China adjust their quotations in different degrees, and some of them even increase twice.

Due to cold repairing of several production lines, general quotations ascend 20 yuan.

Influenced by environment protections in Shahe, glass flowing amounts to Shandong Province decline compared with last month. The glass transporting amounts from Hubei to Jiangsu Zhejiang Shanghai region maintain normal with slightly increasing from several manufacturers. Some manufacturers plan to adjust prices continuously in the near future.

Glass spot market in Southwestern region inclines to stay weak with descending production and sale ratio as well as low market confidence. The glass flowing amounts from nearby market start to increase in Northeastern and Central China, which impedes local manufacturers delivering speed, especially in Fujian.

Central keeps level

Central China market stays in average, which manufacturers mainly focus on pushing deliveries and retrieving payments. Glass quotations increase slightly for local purchasers, while manufacturers keep sales promotions for long-distance market.Deliveries from manufacturers maintain steady while quotations enhance. The coordination meetings held in Eastern and Northeastern China encourage market confidence. Analyzing from manufacturers’ inventories, storage amounts are cut down. Increasing glass rates in Northern and Central China certainly support glass market to run

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smoothly. The reason why processing companies accelerate to pick up goods is for some coming orders. Once glass prices raise, they will be more careful on payments and purchasing. Furthermore, Northeastern region enact winter policies and some of their glass products flow into Eastern China. Glass spot market in Northern China stays normal. The operation ratios of manufacturers in Northern China are varied with steady confidence. Due to environment protections, Shahe market gets impacted under controlled road transportation.

Quotations from some manufacturers start to raise around 10 yuan, yet others remain to observe. Orders received by processing companies are in average while rate of operation stays low. Deliveries in Beijing Tianjin and Hubei regions tend to be stable. With winter policies, glass flowing amounts from Northeastern region to Northern China increase compared with last month.

Some local manufacturers adopt sales promotions in order to protect their clients and push deliveries.

Winter Policies

Due to recent environment protections, deliveries and operations of manufacturers and processing companies in Shahe are influenced. Currently, raw materials transporting and finished products delivering are controlled, which all drag down the production and sale ratio and increase inventories.

The situations are same for mirror manufacturers. Regarding regions, Xingtai region faces even more strict controls when compared to others. Some manufacturers enact winter policies in Northeastern China, while others lower their quotations directly. Deliveries in Northern China are under big pressure.

With weather getting cold, demands from end market and orders from processing companies in Northern China decreases gradually. Situations in

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ANALYSIS: Container glass

Dragon Southern China are better than Northern China compared on week over week basis. Regarding glass flowing directions, glass amounts from Northern China increase, especially from Northeastern China. Analyzing from recent deliveries, the delivering speed in Northern China declines slowly but manufacturers continue to maintain current prices.

Due to low temperature, some regions are under heavy snow weather, which certainly impedes the demands from construction industry and drags down the orders numbers received by processing companies. Deliveries in Shahe also slow, which the situation is same to other regions. Quotations from several manufacturers in Southern China drop, yet others maintain to observe without any further actions. Deliveries in Central and Eastern China stay normal, while inventories remain to increase. With new year approaching, manufacturers stick to current prices due to steady capitals running.

Thin glass rates in Shahe are increasing while thick glass products are in big sales. In general, inventories in Shahe remain normal with few pressure. After seminars held in Southern China, manufacturers are reluctant to enhance rates in order to protect local market from other regions. Quotations from Eastern China are up a little bit for cheering up market. Northeastern China also enacts winter policies with sales promotions. Those manufacturers who do not enact policies, they just drop their rates directly. The winter policies are expected to stop till first quarter in 2019.

Approaching to holidays, glass spot market tends to be steady as well as manufacturers stick to current quotations. Since beginning of December, coordination meetings in Eastern China are held one by one. Facing lots of unfinished orders, quotations are up firstly, which provides good opportunities for manufacturers to push deliveries. However, along with order numbers declining, delivering speed reduces and inventories increase.

Delivering speed from Southern and Central China keeps a good pace due to end market demands are adequate. Due to cold weather in Northern China, glass demands decrease and some processing companies are preparing for holidays.

Soda Ash Market Data

Soda ash prices are stable in Northern China. Quotations of light soda ash

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range from 2,050 to2,150 yuan per ton, while heavy soda ash prices stay between 2,150 and 2,250 yuan per ton. Transaction prices are flexible and it is expected to last current status in following days.

Rates in Central China also keep steady. Prices of light soda ash vary from 1,900 to 1,950 yuan per ton, and rates of heavy soda ash keep between 2,050 and 2,050 yuan per ton. Overall quotations are flexible and rates fluctuations are going to be narrowed in the future.

Quotations in Eastern China keep stable maintaining between 1,950 and 2,050 yuan per ton and charges of heavy soda ash remaining between 2,050 and 2,150 yuan per ton. Downstream markets purchase goods based on their needs.

Capacity utilisation

Capacity utilization of float glass on 21st December reaches to 70.05 percents, which increases 0.54 percent compared with last month and 0.06 percent more than last year.

Regarding float glass capacity, it’s up to 928.5 million weight boxes, which has 7.2 million weight boxes more than last week and 22.26 million weight boxes more than last year. Inventory in float glass industry stays at 31.23 million weight boxes, which enhances 40,000 weight boxes compared with last week and has 260,000 weight boxes more than last year. Weekly inventory day attains to 12.18 days, which is up 0.11 day from last week and has extra 0.2 day compared with last year.

Capacity utilization of float glass on 28th December reaches to 70.04 percents, which drops 1.13 percents compared with last month and 0.03 percent less than last year.

Regarding float glass capacity, it’s up to 928.5 million weight boxes, which has 15 million weight boxes less than last month and 21.06 million weight boxes more than last year.

Inventory in float glass industry stays at 31.52 million weight boxes, which enhances 240,000 weight boxes compared with last week and has 630,000 weight boxes more than last year. Monthly inventory day attains to 12.39 days, which is up 0.29day from last week and has less 0.03 day compared with last year.

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ANALYSIS: Container glass

Mobile boost?

The mobile glass market keeps at a lower position since the decreasing from November. Based on profits gained and cost spent by flat pane factories, rates declining speed may slow down slightly. Moreover, influenced by recent Huaying things, if production lines are not able to be recovered as soon as possible, Asi pane for smart phones supplying may descend and LCD screens supplying amounts will also be tight, which attributes to the surging of mobile glass pane prices.

As for flat pane glass, market demands continue to stay at a low position and the driving force from end-market also reduces. Quotations of flat pane glass are estimated to drop.

Profitability increasing?

From January to October 2018, there are total 3,435 glass and ceramics manufacturing companies. The income of major business reaches to 388.812 billion yuan and increases 6.32 percents compared with last year, which revenue of glass manufacturing industry arrives at 133.912 billion yuan, enhancing 4.54 percents.

The income in daily-used glass products stays at 39.433 billion yuan, 2.62 percents less than last year; while Mirror’s revenue is 5.1 billion yuan, which also decreases 4.42 percents.

China Glass Composite Index

On 23rd November, 2018 China glass composite index reaches to 1,146.13 points and increases 1.02 points from last week, which descends 21.91 points compared with last year. China glass price index stays at 1,173.16 points and enhances 0.74 point more than last week, which drops 15.83 points compared with last year. China glass confidence index arrives at 1,038.01 points, raising 2.74 points compared on week over week basis and falling 46.24 points compared with last year. Glass spot market turns up in this week along with increasing deliveries from manufacturers and market confidence. After previous cutting down the inventories and some productions lines halting, spot quotations tend to be stable. Furthermore, coordination meetings held in Central China decide to encourage market by raising quotations. Analyzing from demanding end, current processing orders keep steady in both Northern and Southern China.

On 27th November, 2018 China glass composite index reaches to 1,145.59 points, dropping 0.36 point; China glass price index stays at 1,172.45 points, declining 0.36 point; China glass confidence index arrives at 1,038.15 points, falling 0.38 point, when all are compared on month over month basis. Glass spot market inclines to stay normal.

Manufacturers mainly focus on pushing deliveries and retrieving payments. Deliveries from some manufacturers slow due to low market confidence. Eastern and Northern coordination meeting are delayed, which also impacts the market confidence.

On 30th November, 2018 China glass composite index reaches to 1,144.98 points and drops 10.63 points from last month, which descends 27.15 points compared with last year. China glass price index stays at 1,171.92 points and falls 12.87 points more than last month, which descends 21.74 points compared with last year. China glass confidence index arrives at 1,037.23 points, dropping 1.68 points compared on month over month basis and falling

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XINGTAI REGION FACES EVEN MORE STRICT CONTROLS WHEN COMPARED TO OTHERS

Output of flat glass by month in 2018H1 Month Month

Cumulative

Output (k.cases) Growth rate (%) Output (k.cases) Growth rate (%)

Jun 2018

73,951

1.2

424,673

-0.9

May 2018

71,374

-0.7

344,971

-1.3

Apr 2018

70,995

1.4

273,595

-1.5

Mar 2018

68,751

-5.2

201,981

-2.8

Feb 2018

--

--

129,720

-1

Output of tempered glass by month in 2018H1 Month Month

Output (k. m2)

Cumulative

Growth rate (%)

Output (k. m2)

Growth rate (%)

Jun 2018

73,951

1.2

424,673

-0.9

May 2018

71,374

-0.7

344,971

-1.3

Apr 2018

70,995

1.4

273,595

-1.5

Mar 2018

68,751

-5.2

201,981

-2.8

Feb 2018

--

--

129,720

-1

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ANALYSIS: Container glass

48.80 points compared with last year. Although peak season already finished, glass spot market in November is better than expected with enhanced productions and sales ratio and steady spot quotations. Cutting inventories in Shahe processes smoothly and spot quotations also turn up, which also supports nearby market. Along with the spot market changing, due production lines also move forward as scheduled, which helps to alleviate the pressure between supplying and demanding. There will be more lines planned to be halted in following days and market confidence also get cheered up.

On 19th December, 2018 China glass composite index reaches to 1,143.84 points, increasing 2.16points; China glass price index stays at 1,171.31 points, ascending 2.39 points; China glass confidence index arrives at 1,033.94 points, enhancing 1.25 points, when all are compared on month over month basis. Glass spot market is going through some turbulence recently. Winter policies in Northeastern China starts to influence the market especially for nearby market. Production and sale ratio in Shahe also drops due to environment protections, which inventories raise for some manufacturers. There are two production lines halted for cold repairing, which eases the tension between supplying and demanding.

On 20th December, 2018 China glass composite index reaches to 1,143.43 points, increasing 0.59 point; China glass price index stays at 1,172.19 points, ascending 0.88 point; China glass confidence index arrives at 1,033.38 points, dropping 0.56 points, when all are compared on month over month basis. Glass spot market tends to be stable with normal delivering speed. Sales promotions incline to stop, while current processing companies and traders are purchasing based on needs. In general, inventories keep normal.

On 24th December, 2018 China glass composite index reaches to 1,144.63 points, increasing 0.11 point; China glass price index stays at 1,172.54 points, ascending 0.18 point; China glass confidence index arrives at 1,032.98 points, enhancing 0.16 point, when all are compared on month over month basis. Glass spot market stays normal during weekends, which manufacturers majorly push their deliveries and retrieve payments. Glass spot quotations retain relatively flexible while market confidence inclines to weaken. Recent price coordination is made by manufacturers based on upcoming orders and low inventories. Manufacturers enhance quotations firstly to prepare for future adjustments.

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Output of laminated glass by month in 2018H1 Month Month

Output (k. m2)

Cumulative

Growth rate (%)

Output (k. m2)

Growth rate (%)

Jun 2018

7,844

5.8

42,496

2.9

May 2018

7,420

4.6

34,393

2.2

Apr 2018

7,204

5

26,962

1

Mar 2018

7,354

6.7

19,656

0.8

Feb 2018

--

--

12,577

-1.2

Output of insulated glass by month in 2018H1 Month Month

Output (k. m2)

Cumulative

Growth rate (%)

Output (k. m2)

Growth rate (%)

Jun 2018

8,671

-7.1

46,982

-1.7

May 2018

8,314

-4.7

38,652

-0.2

Apr 2018

8,000

-4.8

30,457

1.7

Mar 2018

7,965

-1.1

22,807

5.2

Feb 2018

--

--

14,421

11.3

Output of flat glass by month during 1989-2018 Month Month

Cumulative

Output (k.cases) Growth rate (%) Output (k.cases) Growth rate (%)

Apr 2018

70,995

1.4

273,595

-1.5

Mar 2018

68,751

-5.2

201,981

-2.8

Feb 2018

--

--

129,720

-1

Dec 2017

60,622

-5.3

790,235

3.5

Nov 2017

60,927

-3.5

730,646

3.9

Oct 2017

64,235

-0.3

671,176

4.3

Sept 2017

63,239

0.5

609,594

5

Aug 2017

65,258

4

544,661

5.6

Jul 2017

66,616

3.2

479,019

4.6

Jun 2017

70,778

5.4

414,145

5.8

May 2017

73,055

8.9

341,560

6.4

Apr 2017

68,321

5.9

268,265

6.4

Mar 2017

69,891

5

199,935

5.1

Feb 2017

--

--

129,394

5.7

Dec 2016

63,629

15.4

774,028

5.8

Nov 2016

63,459

7.1

711,395

4.9

Oct 2017

64,495

8.8

648,167

4.7

Sept 2016

6,297

2.7

583,669

4.1

Aug 2016

6,200.

7

515,044

2.6

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SPECIAL REPORT

In focus

GLASS-GLASS MODULES UNDER PRESSURE? Glass-glass modules are built to survive the toughest conditions and can deliver module lifetimes far exceeding the 20-30 years expected of glass-foil. The module concept is ideally positioned to catch the building bifacial wave, but only if quality concerns are addressed, warn some experts in the field.

In 2018, DuPont added data from glass-glass installations to its Global Field Survey results for the first time. And in a way, the results undermine some long-held assumptions about glassglass modules.

DuPont has inspected close to 20 MW of glass-glass installations, with an average age of between three and four years, finding that in 13% of the modules inspected defects were present.

While 20 MW is only a drop in the ocean of the over 1.04 GW of installations, totaling some 4.2 million modules DuPont engineers have inspected as a part of its survey since 2011, that defects are being reported at a relatively high rate is worrying. By comparison, the overall defect rate in the survey in 2018 stood at 22.3%.

“Most of us are aware that a lot of PV modules do not show up defects in the early years of deployment,” elaborates DuPont’s Kaushik Roy Choudhury, who leads the reliability field program. “Looking at installations that are three to four years old, glass-glass defects were at 13%. At more than four years old, we have seen that the backsheet defect rate goes up to 35% – if the same was to occur with glass-glass it should make folks concerned.”

Bifacial driver

Bifacial technology was one of the most talked about technology trends within PV in 2018. With cell makers able to manufacture bifacial products at only a negligibly higher cost than monofacial, the incentive to add rear-side power output to a PV module becomes compelling.

Alongside technology, there have been market drivers of the bifacial ramp-up also. PV InfoLink calculates that bifacial modules were supplied to between 30% and 50% of successful projects under China’s Top Runner program, which incentivizes high efficiency solar technologies. Describing 2018 as “the first year for bifacial module development,” PV InfoLink analysts expect that bifacial module demand will “grow more significantly” as a result of Top Runner projects in 2019.

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Assembly issues

Given these drivers, the next question is: What is the best way to assemble bifacial cells into modules? The obvious answer is glass-glass. Highly transparent allowing power generation on both sides of the module, robust in some of the toughest elements, and able to remain in the field or on the roof for 30, 40, or even 50 years, dual-glass appears the ideal solution into which high efficiency bifacial cells can be incorporated.

However, if the DuPont data are to be believed, it may not be quite so simple.

Dealing with defects

“The defects we do see in glass a lot… are busbar and finger ribbon corrosion leading to power loss,” says DuPont’s Choudhury. “We have seen delamination of the glass, from both the front and back encapsulant. We have seen cracking on the rear glass – in localized places or in some cases extensive cracking as well.

The other issue is encapsulant browning in the front, which is very prevalent.”

Catastrophic module failures have also been observed by DuPont in the field, with modules bowing and eventually cracking and breaking into pieces under their own weight.

However, not all glass-glass modules are created equal. Proponents of the technology are quick to note that some of the failures observed by DuPont may have been in China, executed by developers and manufacturers unfamiliar with the technology. As with so much of the PV supply chain, there is high and lowquality glass-glass modules, and here attention to detail is important.

“At the moment, there is a lot of hype [about glassglass modules], but the reality is that with some of those products, especially OEM [produced], you might find quality issues later on, which also hits onto us, as glassglass will generally suffer,” says Bernhard Weilharter, the Managing Director of German module maker CS Wismar.

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At the moment, there is a lot of hype about glass-glass modules

CS Wismar markets its modules under the brand Sonnenstromfabrik in Germany and has a production capacity of 300 MW. The CS Wismar facility is the former Centrosolar fab, which was something of a glassglass pioneer, with its first product released onto the market in 2009.

Weilharter says that in 2018 about 60% of its sales were glass-glass, with key markets being the Benelux countries and France.

Handle with care

Installers, also, are not yet fully comfortable with glass-glass, with fears that handling and installation faults could occur. “People are not experienced [with glass-glass] and there is a high risk of module breakage in the field,” says Lars Podlowski, VP of Technical Services at independent technical and quality assurance provider PI Berlin. “You need special clamps, positioned at proper positions from a static load perspective. Then of course they are very heavy – the installation troops don’t like them.”

Podlowski says that while PI Berlin does not have significant experience in working on PV projects deploying bifacial technology, he equally has not seen a large number of faults.

The clamps to which Podlowski refers, relate to frameless glass-glass modules. Frameless glass-glass modules do present a number of advantages including ease of cleaning in dusty regions, and an aesthetic advantage in BIPV applications. Additionally, the cost of the aluminum frame is spared – which can be up to 13% of total module cost. However, there are significant potential downsides. In frameless glass-glass applications, three rather than two clamps are required to affix the module, and the clamps themselves must have a special rubber coating in order not to cause cracking under wind loads.

“The cost advantage on the frameless is only on paper, but in the field there are extra costs on the downside,” says Weilharter – specifically referring to the additional number of clamps and their more-costly rubber lining.

The materials used for glass-glass modules themselves also play a role in ensuring quality. While some glass thicknesses used for dual-glass in its early days made them prohibitively heavy – “our first glass-glass from Centrosolar…was a failure,” says Weilharter – 2 × 2 mm glass sheets deliver a module weight only slightly heavier than the corresponding glass-foil.

CS Wismar is currently moving towards a module with 2 × 0.8 mm in thickness, targeting applications such as roofs with weight limitations.

“With only 9 kg [in weight]…it can be bowed like a plastic,” says Weilharter. “And we did all kinds of mechanical stress, and the cells didn’t break.” The company currently deploys 2 × 2 mm as standard.

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However, very thin glass is expensive to produce and manufacturers are likely to have lower yields in production due to the extreme thinness. As a result of the additional cost of very thin glass, most mass production bifacial modules being produced today are described as using 2 × 2.5 mm glass. More often, this means 3.2 mm on the front and 2 mm backsheet glass, states Weilharter – which brings down costs but in turn introduces its own issues.

Lamination matters

Problems with glass-glass module lamination can result in compromised quality. The module can bow either after lamination or in the field, particularly when frameless. This can be a result of using different front and rear glass thicknesses, but it can also be because of the lamination process and tooling itself.

German lamination equipment supplier Bürkle supplies its Vacuum Flat Flat (VFF) laminator to glass-glass module producers. The laminator is available in both a single and multi-stack configuration, with a maximum number of stacks at six (or 12 modules) at present. Robert Gaiser is the Global Sales Manager PV for Bürkle and reports that some laminators use an upper membrane, and single heated plate at all stages for glass-glass lamination, which can lead to pinching at the edges, a less homogenous lamination, and bowing.

“With a membrane lamination and single side heating, the temperatures at the end will be at 120°C for the upper glass, and 150°C for the lower, which means the bottom glass will have expanded more. When cooling back to 25°C, the lower glass shrinks more and the EVA will be squeezed.” He reports that this will create tension within the EVA and potential bowing. “Especially with frameless you can see that the physical stability of the modules is reduced, because there is stress within the module,” says Gaiser.

Bürkle engineers are currently working on a prototype of its Inline Flat Lamination (IFL) tool for the PV industry. The tool employs a three-stage lamination process, in a membrane-less process: first vacuum evacuation phase with double sided heated flat press, second a double-sided heating lamination with a flat press, and finally a double-sided cold flat press for cooling. Gaiser says the tool could result in reduced replacement parts, a more homogeneous lamination.

Transparent backsheets

Last year DuPont introduced its transparent backsheet to the market at SNEC. A cynic might suggest that there is a certain coincidence in DuPont wanting to highlight the pitfalls of glassglass products just as it introduces a product that competes with glass in bifacial applications.

“We had been seeing glass-glass module failure before we released the transparent backsheet,” responds Mark Ma, the Global Marketing Manager, DuPont Photovoltaic Solutions.

“We launched the transparent backsheet because we believe it is a better solution for bifacial.”

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Beyond reliability, DuPont says that its transparent backsheet also delivers better yield rates for producers and easier installation due to its light weight. Bürkle’s Gaiser confirms that in the lamination company’s testing, a transparent backsheet can be deployed using a more or less standard process, albeit at slightly different temperatures. “I see it as the cheaper solution for bifacial products,” he notes.

At present, DuPont says that its transparent backsheet is competitive with a glass backsheet on cost, and almost identical from a total cost of ownership (TCO) perspective. However, DuPont’s inspection program lead Choudhury reports that a transparent backsheet requires “a higher level of technical complexity [than a white backsheet]. We have tested different transparent backsheets in the market – a lot are not performing beyond a 25 year lifetime.”

Floating solar: a push for glass-glass

Floating solar has quickly grown to more than 1 GW of installed capacity worldwide, and a source of great hope for the industry’s future, particularly in countries where space for solar is at a premium.

In the second half of 2018, a raft of announcements were made concerning planned floating PV (FPV) installations – a 47 MW project in Vietnam, 17 MW in the South of France, and as much as 300 MW being mulled over as part of a massive hybrid generation project in Ukraine., “We believe there will be continuous growth of about 500 MW per year, looking at tenders and projects being developed in various parts of the world,” says Thomas Reindl, Deputy CEO at the Solar Energy Research Institute of Singapore (SERIS). “This number, however, also depends on the future of the feed-in tariff regime in China, both at the national and provincial levels.”

India also announced strong support for floating solar at the end of 2017, with plans to tender as much as 10 GW of capacity from 2018 to 2021, and big demand coming from water utilities interested in the added benefit that floating solar installations are supposed to reduce evaporation and limit the growth of algae. Other countries, particularly in Asia, have also begun to put in place policy frameworks for growth in floating solar. “Even when not considering China for a moment, it seems that Asia will remain the fastest and largest growth region,” adds Reindl.

Both test installations have drawn similar conclusions regarding the heavy requirements on durability for all components that go out on the water. “It’s an environment that can be highly corrosive, there is a lot of vibration with the waves, and the whole thing is moving with waves and the wind,” says Sinapis. “The type of conditions we see in our test array go well beyond the current IEC standards. We think there

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should be reevaluation of these standards, and some parts added for floating PV systems specifically.”

The highly humid environment close to the water’s surface also means that modules may be at increased risk of potentialinduced degradation (PID), an area where more research is needed: “We don’t know what we will see in the future in terms of PID,” says Sinapis. “PID is a problem with long strings and high humidity in particular. Now we are in contact with TÜV Rheinland to try to establish a group to research this and determine if there is a need for an IEC standard here as well.”

Both researchers recommend the use of glass-glass modules in floating installations, thanks to their increased moisture resistance, though Reindl admits that a test bed in Singapore is too young for them to have observed any differences in performance between glass-glass and glassbacksheet modules.

With glass-glass, of course, comes the question of bifacial, as we have already discussed. And while these modules are often touted as performance boosters for floating PV, testing so far has revealed few advantages – since water has a low albedo, and the modules are typically installed at low angles. “We still have to evaluate our data, but we think that floating solar would not be the best use of bifacial panels,” says Sinapis. He notes that many of the mounting structures are completely closed at the bottom, and that the modules need to be as flat as possible, to prevent a ‘sail’ effect in high wind conditions. “Tilt angles have to be kept to a minimum, although tracking is possible, where there is an option to stow in a horizontal position during high winds,” he adds. all levels of a system. As installations grow and projects such as these continue to produce results, better knowledge and more optimizations will emerge alongside increased production volumes to further bring down system costs.

“It is important to always keep in mind that from the moment you put the FPV system on water it will never stand still again – which needs to be reflected in the system design,” concludes Reindl. “The overall effectiveness of a floating PV investment depends on multiple factors – for example ease of installation, the performance ratio (PR), specific energy yield, and also the O&M cost. One has to find the right balance, but typically the market decides which will be the best solution.”

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Window on

BRAZIL Table 1

Table 1

6,979,746 2,158,754 1,182,358 396,911 576,870 509,207 554,977 345,067

Argentina Colombia Paraguay Mexico Peru USA Turkey Bolivia

Major float glass export destinations (sq. metres)

Mexico Turkey Belgium USA France

990,191 673,780 420,196 364,068 104,516

Major float glass import sources (sq. metres)

Table 1 Table 1 2013 2014 2015 2016

5,708,935 9,485,998 13,632,527 15,713,982

Total float glass exports (sq metres)

2013 2014 2015 2016 2017

32,562,697 19,637,825 6,943,096 3,711,811

3,244,081

Total float glass imports (sq metres)

1

1

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Table 1

Table 1 Argentina Colombia Dominican Rep. Uruguay Angola Peru Guatemala Paraguay

7,577,166 834,601 2,776,658 2,269,434 2,597,519 395,532 431,078 1,035,818

Total float glass imports (sq metres)

Mexico China India France Italy Chile Colombia Peru Czechia

5,757,901 17,759,195 10,174,537 1,892,353 1,265,836 2,396,766 1,770,456 518,596 758,205

Major container glass import sources (Kg)

Table 1 2013 2014 2015 2016 2017

Table 1 8,579,527 7,977,839 9,576,180 14,145,064 18,986,496

Total container glass exports (Kg)

2013 2014 2015 2016 2017

141,569,260 121,867,910 52,582,989 34,868,272 43,805,221

Total container glass imports (Kg)

1

1 Table 1 Argentina USA Mexico France Chile Uruguay Paraguay Angola

Table 1

9,668,289 1,702,696 991,251 698,662 346,159 232,502 311,308 834,931

Major safety glass export destinations (Kg)

2013 2014 2015 2016 2017

15,081,469 12,943,318 15,027,026 16,475,229 16,132,192

Total safety glass exports (Kg)

1

1

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