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PG Group invests to increase output, exports

The strong economy and the provision of support for its export operations are behind plans by South Africa“s PG Group to spend ZAR 1 billion on expanding output.
PG Group CEO Stewart Jennings said 2…

The strong economy and the provision of support for its export operations are behind plans by South Africa“s PG Group to spend ZAR 1 billion on expanding output. PG Group CEO Stewart Jennings said 21 June 2005 that strong growth in the building sector and demand for autoglass from car producers were behind the company“s decision to expand production. He said that apart from trying to facilitate the increase in demand, the company was also expanding to achieve greater economies of scale so it could compete with cheap imports from China. The group“s Springs plant, which produces 140,000 tons of flat glass a year, will double its capacity when the new production line is commissioned in two years“ time. Jennings said the expansion would create 65 jobs directly, with further growth in the downstream glass industry. PG Group will also expand production at its autoglass plants in Port Elizabeth and Garankuwa. “When both float lines are operating at full capacity, we will be able to meet the glass needs of the African continent and still have an additional 40,000 tons a year available for export to Europe and the US,” said chairman Ronnie Lubner. Exports have become a major part of operations: Jennings said that despite the strength of the rand, PG was increasing the volumes of building glass into Africa, and its automotive glass exports to the US and Europe remained significant. “We remain SA“s largest exporter of automotive components, including deliveries to the Belron Group, a former sister company,” Jennings said. He said the expansion would be financed through bank loans.

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