V. (Viméxico) has notified AFG Industries, Inc. (AFG) that it is exercising its right to purchase the 50% stake in the Mexican joint venture Vitro AFG, S.A. de C.V. (Vitro AFG) currently owned by AFG.Vitro AFG is a
float glass manufacturer located in Mexicali, Baja California, México.
Vitro AFG is a 50/50 joint venture between Viméxico and AFG Industries, a subsidiary of the Japanese company Asahi Glass Co. Limited. The joint venture
was established to supply the United States and Mexican construction markets with a wide range of flat glass products, from the traditional 2 mm clear glass to
12 mm thick glass. The joint venture began operations on November 18, 2003 with a co investment of approximately US$100 million dollars.
Within the terms of the JV agreement signed in June, 2001, AFG, recently notified Viméxico that it wished to exercise its option to purchase Viméxico’s 50% stake in the joint venture company for US$6 million. Viméxico, in turn, decided to exercise its right to purchase AFG’s 50% stake in Vitro AFG at the price offered by AFG, according to the terms of the joint venture agreement. The transaction is subject to government authorizations and, if approved, would take place before the end of July 2007.
“We are excited to be able to add to Vimexico’s manufacturing capacity. We believe it will allow us to further strengthen our position and benefit from the
dynamic growth of the architectural market in México. This buy out is being undertaken within the terms agreed upon six years ago with our joint venture
partner. We appreciate the business relationship we have had with AFG Industries and wish them the best in their strategy to consolidate their
manufacturing facilities in the U.S.,” said Hugo Lara, President of Vitro’s Flat Glass Business Unit.
Vitro AFG is a state-of-the-art technology facility, employs 230 people and
manufactures 155,000 tons per year of float glass for the construction market.