Colombia-Based Tecnoglass Announces Joint Venture with Saint-Gobain, New Glass Factory

Today, Tecnoglass Inc. (NASDAQ: TGLS), the largest Colombian manufacturer of architectural glass, windows, and associated aluminum products for the global commercial and residential construction industries, announced that it has entered into a joint venture agreement with French glass manufacturer Saint-Gobain, through the planned purchase of a minority ownership interest in Vidrio Andino, a Colombia-based subsidiary of Saint-Gobain with annualized sales of approximately $100 million USD. 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 USD.

Vidrio Andino has been selling 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.

Vidrio Andino now plans to build a modern 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. Upon the expected completion of the new Galapa facility in 2021, Tecnoglass will benefit from the following factors:

• Access to ample float glass supply for anticipated growth, with Vidrio Andino more than doubling its float glass production nominal capacity.

• Reduced purchasing costs through expanded scale in its float glass procurement, elimination of raw material waste, and lower inbound transportation costs given Galapa’s closer proximity to Barranquilla.

• Control of nearly its entire production process, driving increased efficiency to provide enhanced service and improved lead times to customers.

José Manuel Daes, Chief Executive Officer of Tecnoglass, commented, “We are excited to partner with Saint-Gobain and to develop one of the most advanced and efficient glass production facilities in the world near our own plant network. This investment reinforces our vertical integration strategy and positions Tecnoglass to capture benefits from nearly the entire value chain of our high-quality architectural glass production. The joint venture secures our float glass supply and will generate significant synergies for years to come.”

Fuente: financecolombia.com

Ver articulo completo: http://www.financecolombia.com/colombia-based-tecnoglass-announces-joint-venture-with-saint-gobain-new-glass-factory/
Jose-Manuel-Daes | christian-daes | Yuyo-Daes