Leading glass manufacturers sell factories to increase profitability

To increase the profitability of the business, the leading international glass manufacturers Saint-Gobain and AGC have taken drastic measures and are selling their factories in different parts of the world. A fairly large number of transactions occurred in the summer of 2021, which makes industry experts speak out loud about the redistribution of market shares in the near future.

On July 31, an agreement was signed on the acquisition by the Swiss concern Arbonia of the architectural glass manufacturer Glasverarbeitungs-Gesellschaft Deggendorf (GVG) in Germany, owned by the Saint-Gobain group of companies. The completion of the transaction is scheduled for the third quarter of 2021. This acquisition will give Arbonia greater independence from glass suppliers. GVG Deggendorf's revenues in 2020 amounted to approximately 20 million euros. As a reminder, this year Arbonia is changing its product portfolio, the Swiss concern sold the window segment to Dovista.

In addition to GVG Deggendorf, Saint-Gobain also sold to its former manager the Aurys company from Carentan-le-Marais, France. The company specializes in the production of tempered glass, with revenues in 2020 of 20 million euros. Saint-Gobain explains that both deals are part of the company's portfolio optimization strategy. The aim of these activities is to increase the profitability of Saint-Gobain. In Portugal, however, the company has taken more drastic measures, closing its Saint-Gobain Sekurit plant as losses have increased in recent years.

In turn, in June this year, AGC also announced its intention to sell its plants for the production of flat glass in the United States of America. At the end of August, the company announced that the deal had been completed, with three businesses sold to Cardinal Glass. The deal is valued at $ 450 million. AGC explains that the sale of American factories will increase the company's profitability.

Source: https://tybet.ru