12 March 1998: Asahi Glass Co. of Japan recently announced its plan to acquire a major stake in a Brazilian automobile glass maker, to make the Brazilian firm its first production base in South Americ…
12 March 1998: Asahi Glass Co. of Japan recently announced its plan to acquire a major stake in a Brazilian automobile glass maker, to make the Brazilian firm its first production base in South America. The Brazilian firm produces glass mainly for buses and trucks, and is the third-biggest automobile glass maker in Brazil. It recorded sales of R$ 39 million in 1996 and expects sales of R$ 100 million in 2002. The Japanese glass maker plans to buy shares in April 1998 of Sao Paulo-based Fabrica Nationale de Vidoros de Seguranca Ltda, also known as Fanavid, the company said. Asahi also plans to gradually increase its stake in the Brazilian firm, reaching 50% by April next year, even though the company added it would not be taking over Fanavid“s management, and that the remaining stake would continue to be held by the family of the company“s founder. As part of the deal, Fanavid will expand its original equipment manufacturing business from its current customer Volkswagen AG to Japanese and other European companies, the company said, while also expanding its production of glass for passenger cars. Fanavid currently has a capacity to make automotive glass for about 500,000 vehicles per year. It plans to increase capacity in the future but the amount has not been decided yet, an Asahi Glass spokeswoman said. Asahi Glass expects passenger car production to grow at an annual rate of around 9% in Brazil, which has seen steady economic growth in the past few years. Honda Motor Co. started production in the country last year, following major US and European carmakers. As for automobile glass, affiliates of major British and French manufacturers currently dominate the market.