Saint-Gobain’s Construction Products Sector Moves into Japan
June 6th, 2008
Saint-Gobain’s Construction Products Sector has taken an important position in Japan in insulation through the acquisition of a stake in the company MAG, matching that of the Japanese group Taiheiyo Cement.
MAG is Japan’s leading glass wool manufacturer with consolidated sales of 20.219 billion yen (125.4 million euros) in 2007, and about 440 employees. It operates four plants located in Ibaraki (Akeno and Tsuchiura), Gifu (Tarui) and Hokkaido (Sunagawa).
The company has been an Isover licensee for many years, has been using the TEL process since 1974, and recently signed a development agreement for ULTIMATE.
MAG is currently owned by Taiheiyo Cement (43.64%) and the Japanese glassmaker Nippon Sheet Glass (also 43.64%). This operation involves the acquisition of the shares held by Nippon Sheet Glass for a share value of 1.750 billion yen (11 million euros).
Saint-Gobain and Taiheiyo Cement have concluded a joint-venture agreement for the management of MAG. Francois-Xavier Lienhart will be appointed President-Representative Director of MAG.
Japan is one of the world’s leading construction products markets: the building industry employs nine percent of the country’s active population, and 1.2 million new dwellings are built each year. New building standards with greater emphasis on insulation should become effective this year. They aim to address the growing concern of Government and consumers for environment protection (reduction of CO2), energy efficiency and comfort.
With this acquisition, the Construction Products Sector has gained an ideal position to successfully build a strong position on the Japanese market and become a significant stakeholder in the Japanese housing industry.