Saint-Gobain to finalise expansion location soon

Date: 29 May 2008
Source: Blonnet

Date: 29 May 2008

Chennai, May 22 Saint-Gobain Glass India Ltd will decide in the next four to six weeks the location for its planned expansion.

The company is looking at sites in Gujarat, Rajasthan, Uttarakhand and at its existing plant near Chennai for the expansion.



The decision will depend on a number of factors such as the product mix, logistics cost, proximity to markets, ease of exports and government support, according to Mr B. Santhanam, Managing Director, Saint-Gobain Glass India.



“I would say that there is a good possibility for multiple investments,” he told Business Line at the Saint-Gobain Glass India’s plant at Sriperumbudur, near Chennai.



The company, according to him, has fairly large investments planned over the next five years in a range of products — basic glass, advanced glass and automotive products.



Saint-Gobain’s plant has two float glass lines with a total capacity of about 5 lakh tonnes a year. It also makes laminated and tempered glass for the automotive industry. Mr Santhanam said the float glass industry was hugely capital intensive and hence the company’s programme entailed investments in excess of Rs 1,500 crore.



For basic products, it made sense for the company to have its plant close to the demand centres while for advanced glass products the benefits (from the government) that the company got and the skills available will determine the location.



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