On August 29, the transfer ceremony of the property rights of Fuyao Glass Industry Group Co., Ltd. (hereinafter referred to as Fuyao Group) and PPG Industries of the United States on the Mt. Zion plant in Illinois, USA was held at Fuyao Group Headquarters, Fuqing City, Fujian Province. This move marks the full launch of the Fuyao Group's US automotive glass project. At this point, Fuyao Group's total investment in the US auto glass project and its supporting float glass project exceeded US$400 million, making it the largest investment by Chinese auto parts companies in the United States.
Previously, Fuyao Glass Co., Ltd., a wholly-owned subsidiary of Fuyao Group, signed an agreement with PPG in the United States on July 17, 2014 to purchase the assets of PPG's Mt.Zion plant in Illinois, USA for US$56 million. These include land, plant, building, two float glass production line equipment, intra-plant railway line assets and supporting facilities. After the transfer of assets, Fuyao America will upgrade it to become two automotive-grade high-quality float glass production lines with an annual output of 300,000 tons. The products will fully meet the Fuyao US company's automotive glass production project in Ohio. Raw material demand.
It is understood that Fuyao Group focuses on automotive glass production and is committed to building a "world's leading supplier of automotive glass" brand. Automotive glass sales account for about 20% of the global market. Two of every three cars in China use Fuyao Glass, which is a quality supplier to Bentley, Mercedes-Benz, BMW, Land Rover, Audi, General Motors, Toyota, Volkswagen, Ford and other automakers. . Its 43 subsidiaries are located in 8 cities in the country and in the United States, Japan, South Korea, Australia, Russia, Germany and so on. Fuyao Group began investing in the United States in 1995. Currently, it has small supporting factories and service centers in Alabama and Michigan, and has corresponding facilities for the auto parts market in South Carolina. At present, Fuyao Group exports nearly US$400 million to the US.
Cao Dewang, chairman of Fuyao Group, said that with the increasing recognition of Fuyao glass products in the US market, Fuyao's plan to achieve auto glass production in the United States in 2016 has been implemented ahead of schedule. Fuyao Group's US auto glass production project will be put into production at the end of 2015. Cao Dewang said that although the cost of wages and benefits of American companies is relatively high, accounting for more than 40% of the total cost, but because the US manufacturing industry only collects income tax, the tax is low, and the energy price is very low, this investment in float glass is An encouragement, therefore Fuyao has the ability to achieve profitability of US auto projects by strengthening cost management. Cao Dewang further stated that Fuyao's US auto glass project will become the second large-scale enterprise in Fuyao China in the future.
Information shows that PPG is the world's leading paint and specialty materials company. Founded in 1983, PPG provides customers with platform support in the industrial, transportation, consumer goods, construction and automotive parts markets. It is a leader in the industry with 2013 net sales of more than $15 billion. PPG began working with Fuyao Group 12 years ago with technology output. For the PPG to transfer the assets of the Mt.Zion factory to Fuyao, Cao Dewang said that this is PPG's help and support for Fuyao's US investment in the snow. Richard Beuke, vice president of PPG Company of the United States, said that the cooperation with Fuyao in the past 12 years has turned PPG and Fuyao into old friends. PPG will further give Fuyao all-round support in technology and R&D. I believe Fuyao can give Mt. The .Zion factory brings a bright future.
Lola Gulomova, deputy consul of the US Consulate in Guangzhou, who attended the pre-existing property transfer ceremony, expressed his pleasure for Fuyao’s success in the United States. I hope that the cooperation between China and the United States will reach a higher level.
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