Thanks to an agreement with Induver Holding, AGC Automotive Europe will be setting up a joint venture for manufacturing automotive glass destined both for Europe and for North African markets.
AGC Automotive Europe has reached a basic agreement with Induver Holding, a glass manufacturer in Morocco, to set up a joint venture for manufacturing automotive glass destined both for Europe and for North African markets. This move marks the AGC Group’s first operations in Africa. In parallel, AGC will acquire a stake in Induver which specialises in automotive glass for the aftermarket and commercial vehicles as well as glass for building applications. This latest deal is subject to approval by the relevant local authorities.
The new joint venture will produce tempered glass for backlites and sidelites, and laminated glass for windshields. It will have sufficient capacity to supply around 1,100,000 carsets annually. The facility will be built in Kenitra province in the northern coastal area of Morocco and is expected to start commercial production in 2019. It should then employ around 600 qualified people.
The new plant is ideally situated to capture demand for automotive glass in southern Europe and Africa. Morocco has been enjoying the highest economic growth in North Africa, reflecting its position in recent years as an automotive production base for Europe. “Various western carmakers have already established or announced operations in Morocco. This investment is in line with our strategic willingness to accompany our customers in their expansion and respond to their demand for high value added products and services,” declared Jean-Marc Meunier, General Manager of AGC Automotive Europe. On the other hand, southern Europe is expected to continue driving demand in the automobile market in Europe where the production exceeds 20 million units annually and is forecast to continue growing at approximately 2% a year.
The AGC Group has been working to expand its operations for the automotive glass business by positioning it as a growth business. Through expansion into Africa, the Group aims to increase its corporate value.