Business Profile
Global Reach
The NSG Group has a broad geographic reach. This broad presence enables the Group to take advantage of diversified sources of raw materials and to capitalise on the advantages of the best local labour forces available. It also enables the NSG Group to provide excellent responsiveness in terms of product range, quality and delivery times to its customers, who, in the case of Automotive OE, have themselves become increasingly global.
The NSG Group is one of only four companies in the flat glass industry that can claim to be true global players, the other three being AGC (Asahi), Saint-Gobain and Guardian. The Group is either established or is developing operations in emerging markets, with key target markets identified as China and India.
Strong Market Positions
The combination of the Pilkington and NSG business platforms has helped mitigate the effects of market cycles in the area of architectural glass and has given the Group a superior presence in developing markets such as South America, China, South East Asia, Russia and others. The integration with Pilkington has moved the NSG Group to a leading global position in the automotive glass market. The Group is well positioned to meet the overseas production needs of Japanese automakers.
Broad Manufacturing Base
The NSG Group operates an extensive network of 51 float lines, giving full coverage of the global market and providing the Group with advantages in terms of strategy, efficiency and effectiveness. The Group’s manufacturing base includes float glass lines operating in Europe, Japan, the Americas, Southeast Asia and China. The Group has Automotive operations covering all major markets worldwide.
Click here to enlarge image which shows NSG Group Float Manufacturing Operations
Strategic Direction
The NSG Group is implementing a 3-phase strategy, covering the 10-year period to FY17. A four year Medium-Term Plan, initiated in April 2007, represents Phase 1 and the Group’s current operational focus is firmly on achieving its objectives. Good progress has been achieved on integration and in the realization of operational synergies. The Group’s organisation has been simplified and management strengthened in all three business lines. The current operational focus is firmly on achieving the objectives of Phase 1: integrating the business and strengthening competitiveness, improving financial strength and preparing for future growth. In parallel, planning is already underway for Phases 2 and 3 in emerging markets – creating joint ventures and undertaking investment to ready the businesses for expansion in regions such as India and China.
Good progress has been achieved on integration and in the realization of operational synergies. The Group’s organisation has been simplified and management strengthened in all three business lines. In parallel, the Group is already preparing the ground in emerging markets – creating joint ventures and undertaking on-the-ground investment to ready the businesses for expansion. In Phase 2, the intention is to achieve strong growth in the Flat Glass sector, expanding geographically, particularly into emerging markets. The Group aims to improve competitiveness, launch major new products and foster its key technologies. In Phase 3, the Group will be exploring new areas for further growth, as well as exploring new businesses by leveraging both its customer base and its technical and operational competencies, in addition to pursuing acquisitions and alliances in adjacent areas.
To be the world leader means supplying quality products in all major markets at competitive prices. The Group aims to sustain its success in Europe and South America, improve profitability in North America, Japan and South East Asia, and develop a successful Building Products and Automotive business in China.
In the financial year 2007/2008, organisational improvements were made to capitalise on synergies in the Group’s supply chains, procurement, benchmarking, product range and R&D programmes. The current surge in energy and commodity costs is being addressed through more effective procurement, hedging strategies and the implementation of energy surcharges.
Attainment of Synergies
The attainment of ‘synergies’ in the conventional sense was not the prime purpose of the acquisition of Pilkington. One attraction of the acquisition of Pilkington was that the two companies represented a very good fit, with very little overlap either in geographies or technology. The main focus has been on integration, and most parts of the business no longer think in terms of synergies.
The expanded the NSG Group aims to grow by leveraging its leading position in products and markets. Sales of both companies’ architectural glass products has been expanded and global automotive glass operations further developed in order to achieve profitable growth. The target is to achieve synergistic effects totalling approximately JPY 19 billion (approximately euro 113 million) by the end of the fiscal year to March 31, 2015.