Opening the Brazilian Market toward the Second Round of Globalization

The concept of a second round of globalization is presented in the AGC Group’s management policy, Grow Beyond, and the Group has made further business expansion in fast-growing markets one of the pillars of its future growth strategy. As specific goals, the “Aspirations for 2020” include Group sales of over 2 trillion yen, with sales from fast-growing markets making up more than 30%. At present, the AGC Group’s presence in fast-growing countries is increasing steadily: it holds the top share in architectural and automotive glass in Russia, and is also expanding its share in India and China with a focus on the automotive market. However, business expansion must not be limited to these markets if the Aspirations for 2020 are to be realized: the opening of new growth markets is vital. To that end, for the past few years, the AGC Group has been considering a move into Brazil, a blank area on its business map.Brazil has a population of approximately 200 million – the fifth largest in the world – and in 2010 the country had achieved high economic growth of 7.5%. Future plans include hosting a succession of international sporting events, and as a result, increased demand in the construction market is expected. Growth in the automotive sector is also remarkable: more than 3.6 million new cars were sold in 2011, making Brazil the fourth largest consumer in the world, and the number manufactured in 2015 is predicted to reach 4 million. In addition, young people, who comprise a high percentage of the current Brazilian population, will constitute the future mainstream of consumers, and so economic growth can be expected to continue over the medium and long-term.Of course there are risks, economic instability among them. However, the country holds abundant potential above and beyond its current growth. The Group decided that the time was finally right to advance, and construction of the plant was given the go-ahead. 01.08.2012, AGC Brasil/agc.com