AGC Inc. concluded a memorandum of understanding on December 9, 2019 with Central Glass Co. Ltd. concerning the integration of their architectural glass businesses in Japan. The companies aim to complete the integration at the end of December 2020.
According to a statement by AGC, the architectural glass business in Japan is facing changes in the demand structure associated with declining new housing starts and dissemination of multi-layered glass. As a result, the business environment has continued to be sluggish despite continued streamlining efforts and restructuring of the distribution system. According to the company, a drastic reform for the entire industry is required as the falling birthrate and other factors are expected to further shrink the demand while manufacturers need to cover the maintenance cost for their aging facilities to ensure stable supply.
Under such a business environment, AGC and Central Glass have determined that, through the integration of their businesses, their pursuit of further improving operational and capital efficiency, increasing profitability and strengthening the companies’ foundation will contribute to the growth of both companies. Going forward, AGC and Central Glass will discuss the concrete details of the business integration.