Guardian suspends investments in new plant

US glassmaker Guardian will suspend investments of US$ 120 million in the erection of a second flat glass plant in Brazil (Parana state). The new unit would double the production capacity in the Brazi…

US glassmaker Guardian will suspend investments of US$ 120 million in the erection of a second flat glass plant in Brazil (Parana state). The new unit would double the production capacity in the Brazilian market, where the company has 40% share. The aim was to sell between 20% and 30% of the production to Mercosul countries, but due to the crisis in Argentina, the shipments dropped from near 4,500 million tons to 1,500 million tons per month. The new plant would process 200,000 million tons of glass per year. Currently, the company produces 600 million tons of glass per day in its Rio de Janeiro state-based unit. In 2001,Guardian had a turnover of US$ 3.5 billion, exporting to Mexico and Venezuela through the Brazilian subsidiary. In Brazil, the expectation is to reach a turnover of R$ 90 million, similar to the posting in the previous fiscal year. Cebrace (joint venture between French Saint-Gobain and British Pilkington) is the leader in Brazilian flat glass market (estimated at 700,000 million tons per year), and started the erection of its fourth plant in Brazil, based in Santa Catarina in March 2002. The unit demanded investments of US$ 120 million and has the capacity to produce 200,000 in March 2002 tons per year.