Mexico“s trade balance for flat glass has swung from a surplus of USD 215.6 million in 1995 to a deficit of USD 45.5 million in 2002 as a result of higher imports. As a result of increasing competiti…
Mexico“s trade balance for flat glass has swung from a surplus of USD 215.6 million in 1995 to a deficit of USD 45.5 million in 2002 as a result of higher imports. As a result of increasing competition in the sector, in 2002 Mexico posted a negative balance in flat glass exports, the first time this has happened in recent history. In 1995, the country imported flat glass worth USD 98 million; in 2002 the figure was up to USD 223 million. And the trend in flat glass continues in 2003 with deficit of USD 63.3 million for the year to May. Imports of flat glass are gaining a foothold in both the building and automotive sectors. In 1995 only 4% of flat glass for building was imported, with the remaining 96% supplied by Vitro. In 2002, 15% of glass for building was imported, 57% was manufactured by Vitro, 22% by Saint-Gobain and the remaining 6% by other producers. The same trend is evident in autoglass: in 1997 Vitro had 77% of the market while the remaining 23% was imported. In 2002, imports were up to 46%. Vitro“s share was down to 43%, Saint-Gobain supplied 11% and the rest of the market was accounted for by imports, which were divided between PPG with 20% of the market, Asahi with 11% and others making up the remainder. Nevertheless, Vitro has maintained its presence in the USA, which accounted for 62% of the company“s total flat glass sales in 2002. This is reflected in the USD 262.2 million surplus in glass trade with the USA in 2002 and the USD 41.6 million surplus for the year to May 2003. The major glass manufacturers have arrived in Mexico in search of a slice of the attractive flat glass market, presenting a challenge to the domination of Vitro. Guardian has been selling flat glass in Mexico for over 20 years from its plants in California and Texas, and for the last three years has had a sales center in Veracruz for imports and sales in Mexico. It recently announced the construction of a plant in Queretaro. French Saint-Gobain has invested USD 400 million in Mexico. Since 1997 it has operated two plants, one for flat glass and the other for autoglass, in Cuautla.