IFC has approved over $900 million in the glass industry in developing countries around the world. Current commitments total more than $300 million. IFC’s expertise includes flat glass, glassware and tableware, containers, and glass fibers. Our clients supply several industries including automotive, construction, beverage and food packaging, catering, and leisure.
IFC has participated in major expansion of manufacturing capacity of individual and joint-venture investments in this sector. IFC’s clients include leading national and international glass companies, as well as important regional players with track records in the industry and the region.
The Worldwide glass industry:
Growing per capita glass consumption in emerging markets presents strong opportunities for private sector expansion. Critical infrastructure shortages in fast-growing emerging market economies are driving demand higher and creating additional market opportunities.
As industries such as automotive manufacturing expand in emerging markets, demand for glass suppliers also expands, since transporting glass across long distances is costly and inefficient. Modern glass production is capital-intensive and requires large up-front investments, a particular challenge in some emerging markets where limited financing options and higher borrowing costs can constrain promising projects.
The business is price-sensitive, competitive, and highly commoditized. Emerging market nations can offer a lower cost of doing business and skilled, productive workforces.
Updated technology, environmentally-friendly and energy-efficient processes, competitive labor, raw materials costs, proximity to market, and strong distribution channels are important to maintaining a competitive edge.
IFC’s investments in the glass sector:
Zhejiang Glass (China). IFC provided $70 million in loans and equity for this domestic market leader. The investment will improve the energy efficiency of glass production and enhance the company’s quality controls. In addition, IFC assistance helped restructure the company’s finances. The project establishes new best practice standards for the domestic glass industry.
Pilkington Glass (Russia). IFC’s two rounds of investment, totaling €60 million have reinforced the partnership with the world’s largest glass manufacturer. IFC financing has helped the company build and equip a state-of-the-art float glass plant to address a growing demand. The company is also improving its management practices with assistance from IFC.
Sisecam (Turkey). IFC commitments totaling $90 million have helped this global market leader reduce production costs and take advantage of export growth opportunities. By adopting IFC’s environmental standards, the company has improved its health and safety standards.
Owens Corning India Ltd. (India). IFC has invested $12 million in Owens Corning India Ltd., India's largest fiberglass manufacturer. The investment will support its expansion and modernization plans, while improving energy and production efficiencies.