3 December 1998: Japanese firm Asahi Glass Co. is investing US$ 40 million to build a new automobile glass plant in Jalisco State, Mexico, a recent press report has said. Construction work has been in…
3 December 1998: Japanese firm Asahi Glass Co. is investing US$ 40 million to build a new automobile glass plant in Jalisco State, Mexico, a recent press report has said. Construction work has been in progress since April, and the plan calls for volume production to commence from the third quarter of 1999 with an annual capacity of 400,000 car sets. After the creation of NAFTA, car manufacturers, including Japanese companies, have been actively investing in Mexico as a production base for the North American market, the report said. As a result, car production in Mexico is forecast to grow by 10% yearly, led by exports. While undertaking production of supplies for the local Honda subsidiary, so far supplied from the Ohio plant, Asahi also intends to supply the new Nissan Motor plant which will go into production from mid-1999, as well as GM“s local truck operation. An initial production scale of around 200,000 car sets is expected. The plan calls for base sheet stock to be purchased from Mexican glass manufacturers and Asahi“s granddaughter company AFG Industries (US). In addition, the company reportedly wants to boost its share of the 4.5 million cars-scale annual US repair glass sector, aiming for US$ 15 million annual sales within five years.