Saint-Gobain and AGC join forces to accelerate the decarbonization of flat glass manufacturing – 02/06/2023 at 08:29


(AOF) – AGC and Saint-Gobain, global manufacturers of flat glass and leaders in sustainable development, announce their collaboration to design a pilot line of flat glass, a breakthrough innovation that should significantly reduce significant direct CO2 emissions.

As part of this Research and Development project, AGC’s patterned glass production line in Barevka, Czech Republic, will be completely renovated and converted into a high-performance, state-of-the-art production line, which will be supplied with 50% electricity and 50% with a combination of oxygen and gas.

This is a real step up from current technology used in natural gas-fired flat glass furnaces. This design of flat glass production lines will be the lowest carbon in the world and will contribute to both companies’ carbon neutral trajectory and the necessary acceleration of the decarbonization of the flat glass industry.

This innovation will pave the way for flat glass production lines to be converted to power primarily with low-carbon electricity, which is more efficient than any gas-based solution. Carbon emissions will be significantly reduced, to the benefit of customers. The new technology is expected to be implemented and operational on the printed glass production line by the second half of 2024.

Joana Arreguy, Industrial Director Glass at Saint-Gobain, comments: “At Saint-Gobain, we strongly believe in innovation through collaboration. This is why we are delighted to co-develop with AGC a new glass production technology flat, the most advanced in the world. This project is part of Saint-Gobain’s commitment to achieve carbon neutrality by 2050.

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Key points

– World leader in housing materials, created in 1665;

– Turnover of €44.2 billion divided into 5 branches, Northern Europe for 34%, Southern Europe & Africa (including France) for 32%, Americas for 13% and High performance for 15%;

– Activity 54% intended for renovation and infrastructure (52%), ahead of new residential (22%) or industrial (10%), mobility (7%) and other industries;

– Business model based on a complete portfolio of brands and a solution-based approach: productivity gains for construction professionals, well-being for the end user and tailor-made performance & innovation for the industrial client;

– Split capital (8.3% for employees), Pierre-André de Chalendar, chairing the 14-member board of directors, Benoît Bazin as general manager;

– Solid balance sheet with net debt of €8.3 billion, or 36% of shareholders’ equity, at the end of June.

Challenges

– “Grow & Impact” strategic plan launched in October 2021:

– growth superior to the markets

– offer of integrated, differentiated solutions for the decarbonization of construction,

– industrial investments of around €1.5 billion;.

– Innovation strategy with 3 principles, anticipation of standards, integration of digital in production and customer journeys and sustainable growth:

– structured by 20 platforms shared by the industrial and construction client businesses: smart materials, robotization, lightening of materials, reduction of the carbon footprint in manufacturing processes, etc.,

– customer experience with 90% of sales covered by PIM, “digital pricing” accelerating sales;

– internally, Open program in the form of a “Digital journey”, Datala, partnerships with start-ups led by NOVA, etc.,

– externally, partnerships with research or industrial centers, such as Ecocem, participation in EAGLE, WOOL2LOOP, etc. projects, and co-development with customers;

– Environmental strategy integrated into the product offer, 72% of the portfolio contributing to the reduction of CO2 emissions, aiming for total neutrality in 2050 and with 2030 objectives:

– 33% reduction in CO2 emissions vs 2017 via a €1 billion allocation,

– research in solid oxygen fuel cells,

– circular economy avoiding the extraction of solid raw materials,

– launch of green loans;

– Optimization of the group’s profile with disposals, mainly in distribution, and acquisitions, in construction chemicals with Chryso and GPC, wood construction systems with Panofrance and Rockwool India, exterior materials with the American company Kaycan …

Challenges

– Cyclical nature of the activity, with 4/5ths of sales in the construction sector;

– Inflation of raw materials, transport and energy, for a cost of €3 billion in 2022 more than offset by increases in selling prices and by hedging energy costs;

– Impact of the Russian-Ukrainian conflict on Russian gas supplies: plans to continue operations in Germany and the Czech Republic and manufacturing substitution between countries;

– Energy sobriety: additional savings in European factories, reuse and recycling, production of lighter products, etc.;

– After a 15.6% increase in turnover at the end of September, confirmation of the 2022 objective of sales growth exceeding that of the market, industrial investments of €1.8 billion and further growth in operating profit;

– Redemption of shares.

Learn more about the Building Materials sector

Lack of visibility

The National Union of Quarry and Building Materials Industries (Unicem) indicates that, after an initial downturn in the second quarter, activity continued to deteriorate in the third quarter and recorded a drop in both aggregates (-1.3 %) than on ready-mixed concrete (-0.9%). Over the first nine months of the year, the decline was 2% for the materials business as a whole. Only tiles and bricks manage to show slight increases in activity.

The general outlook is deteriorating and recruitment difficulties and rising costs are the main sources of concern. Furthermore, Unicem underlines the difficulties in implementing the projects. The production of materials could decline this year by 3% for ready-mixed concrete (BPE) and 4% for aggregates.



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