Issue: Jul 2006


Clear window into Chinese market



The Fuyao Glass Industry Group is China’s leading manufacturer of automotive and industrial glass. Head-quartered in Fujian, China, Fuyao Glass controls more than 60% of the automotive original equipment manufacturer market and 30% of the replacement market in China. Its clients include GM, Ford, Honda, Isuzu, Toyota, Mazda, Volkswagen and Mercedes.

The Fuyao Glass Industry Group is China’s leading manufacturer of automotive and industrial glass. Head-quartered in Fujian, China, Fuyao Glass controls more than 60% of the automotive original equipment manufacturer market and 30% of the replacement market in China. Its clients include GM, Ford, Honda, Isuzu, Toyota, Mazda, Volkswagen and Mercedes.
The company has a range of nearly 20,000 products, which is sold both domestically and internationally to North America, Asia, South Africa, Middle East, Australia, Russia and Europe. Last year, Fuyao Glass launched three new float glass production lines, spending nearly US$250m on the latest equipment and technology. With six manufacturing bases, Fuyao Glass uses the latest technology including CAD, CAM and 3-D measurement for design, research and development. All of the company’s products have quality certifications such as the American DOT, European ECE, Australian SAA and the Chinese GB9656 certifications. Fuyao also has the ISO 9002, the QS 9000, VDA6.1, ISO 14000 and the TS 16949 certifications.
Automotive Industries spoke to company founder and chairman, Cho Takwong, and asked him about the company’s plans.
Automotive Industries (AI): Do you see your domestic business continuing to grow as rapidly as it has in the past few years?
Takwong: Yes, I believe the domestic business will continue to grow as rapidly as it has in the past, at least for the next 10 years. Despite having 30-40% growth in the past, with even just 10% growth annually from now on, it will be bigger than the past. With nearly 20 years’ growth, Fuyao itself has fostered capabilities for rapid growth. The employees of Fuyao are maturing and they are the backbone for the development of the company.
AI: How do you see your international business growing?
Takwong: Generally, we are optimistic that our international business will continue to grow. We have had 10 years of international business development, learned the international practice and gained experience. We are assimilated with the business culture and language of the international society. As the global competition becomes more and more fierce, manufacturers are more stringent with the costs. Being a Chinese corporation, Fuyao has an advantage over the costs and the price competitiveness under the same quality conditions.
AI: Which automotive product in your stable brings in the most revenue?
Takwong: The OEM supply for the passenger cars. This pattern will probably continue.
AI: Who are your biggest competitors and are they a threat in the Chinese market?
Takwong: Without doubt, the competition is the five leading companies, Asahi, Saint-Gobain, Pilkington, PPG and Guardian. Three of them have their plants in China at present. However, they are not a threat in the Chinese market. Fuyao is a local Chinese company having advantages in respect of its labor costs and recognition of Chinese politics, economy and culture.
AI: What do you see as the biggest challenge facing your company?
Takwong: The biggest challenge we are facing is to build a skillful management contingent for the international arena and a strong team of staff and workers. The way to overcome this challenge is through training. On the one hand, we are self-cultivating. When we began building the plants we started to establish a highly qualified team and ensured they continually improved and their training updated. On the other hand, we are employing highly qualified talents worldwide to reinforce our management team. Whether they are from the East or west, as long as they have talents good for the growth of Fuyao, they are welcome.


Products manufactured by Fuyao Glass for the automotive sector:
* laminated glass * tempered glass * insulated glass * encapsulated glass
* bullet-proof glass * water repellent-treated glass (used for automotive windshields, side and back windows as well as side view mirrors) * antenna glass * head-up display windshields (used by the military for fighter jets) * acoustic glass for sound-proofing passengers in cars from external noise * Low-E glass * on-line reflective glass * solar control glass and heating glass * silver mirrors which have clear images and neutral reflection with the use of Kloepper’s fully automatic chemical silver coating mirror



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