Asahi Glass: 3 year plan aiming at 10% ROE

The principle target of the Asahi Glass three-year mid-term business plan due to start in April 2003 is to achieve a return of equity of 10%. The company is still involved in working out the detailed …

The principle target of the Asahi Glass three-year mid-term business plan due to start in April 2003 is to achieve a return of equity of 10%. The company is still involved in working out the detailed figures including targets for each business unit. Asahi Glass has almost completed structuring of its global network, including gaining full control of Belgium“s Glaverbel SA. Amongst other objectives, the company will push ahead with rebuilding its domestic business through measures such as increasing the ratio of high added value products. The company has been struggling to improve its profitability in Japan. Meanwhile in the automotive glass sector, Asahi Glass plans to increase efforts to follow the offshore production shift of Japanese vehiclemakers as well as increase supply to foreign automakers. Restructuring of its domestic and overseas manufacturing operations has not been ruled out from a cost standpoint. In the display field, the company will continue the shift from CRTs to flat panel displays. The company is aiming to secure a top competitive position in new market areas such as plasma display panels (PDPs) and organic electroluminescent (EL) displays. In its chemicals business, Asahi Glass plans to expand its fluorochemicals activities in Europe, the U.S., and Asia, including China, as well as realigning its domestic chlor-alkali business in response to changes in the domestic chemicals market.