1 April 1999: Mexican glassmaker Vitro said it was planning to expand its US operations to offset domestic risk, according to recent press reports.
“If we stayed (only) in Mexico, we would run a risk…
1 April 1999: Mexican glassmaker Vitro said it was planning to expand its US operations to offset domestic risk, according to recent press reports. “If we stayed (only) in Mexico, we would run a risk, because the competition is everywhere in all industries,” Federico Sada, the general director of Vitro said. Sada said the plan included working through its US subsidiary, VVP America, to acquire marketing companies and fortify its distribution network. “The idea is to continue acquiring small or medium-sized groups or businesses with different sales points,” he said. VVP America posted sales of US$ 335 million last year and Sada said he hoped the US subsidiary would maintain its 1998 growth rate of 8%. The parent company had sales of Pso 24.843 billion in 1998. He said 70% of Vitro“s flat glass income was from foreign sources, from VVP America sales and other foreign businesses. At the end of 1998, Vitro“s debt totalled US$ 1.57 billion, with an average maturity of all liabilities at 4.1 years. Sada said the company was working to convert most of its peso debt into dollar debt with the expected increase in foreign sales.