AGC is to spend about US$60m on a laminated automotive glass factory in Mexico which is scheduled to start operations at the beginning of 2016.

The supplier said Mexico built 3m vehicles in 2012.

"Steady growth is expected to continue, and the production volume is forecast to reach 4m units by the late 2010s."

The Mexican plant will be the third in North America after the Bellefontaine and Elizabethtown plants run by AGC Automotive Americas. AGC currently exports US automotive glass to meet demand in Mexico.

The third plant - sized to supply 750,000 vehicles a year - would help more flexibly respond to the expected market growth.

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FOR IMMEDIATE RELEASE

AGC to Build Automotive Glass Plant in Mexico

Tokyo, November 12, 2013–AGC, a world-leading manufacturer of glass, chemicals and high-tech materials, announced today the establishment of a new manufacturing base in Mexico. With an investment of approximately 60 million USD, AGC will establish a new company and build manufacturing facility for laminated automotive glass, which is scheduled to start operations at the beginning of 2016.

Mexico’s automobile production, light vehicles in particular, is growing in the North American automobile industry. In 2012, the country’s automobile production marked a record high of three million units. Steady growth is expected to continue, and the production volume is forecast to reach four million units by the late 2010s.

AGC’s new subsidiary in Mexico will be served as its third manufacturing base in North America after the Bellefontaine and Elizabethtown plants run by AGC Automotive Americas Co. At present, AGC ships out products manufactured at the US plants to meet the automotive glass demand in Mexico. Going forward, AGC will have a more improved production system in the region to flexibly respond to the market growth in an effort to further expand its automobile glass business in North America.

Company profile

1. Company name: AGC Automotive Mexico S.A. de C.V. (tentative name)

2. Location: San Luis Potosí, Mexico

3. Capital: AGC Group 100%

4. Business: Production and sales of automotive glass

5. Production capacity : Laminated glass for approx. 750,000 vehicles/year

* As of 2016, and will be expanded in the future

Under the management policy, Grow Beyond, AGC has set the “Second Round of Globalization” as one of its growth strategies, and is devoted to business expansion in emerging markets. By capturing growing demand in fast-growing countries, AGC will make a turnaround in its business and build a solid base for further growth.

Original source: AGC

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