Filipino glass manufacturer weighs expansion plan
Pioneer Float Glass Manufacturing, Inc. (PFGMI), one of the country’s remaining few Filipino-owned manufacturing firms, said its plan to invest over 15 billion in a new furnace to expand production to other lines is becoming problematic as it alleged of “unfair competition” from imported substandard flat glass.
PFGMI Paul Vincent Go, who acquired the Japaneseowned Asahi Glass Philippines, said PFGMI plans to implement its expansion project by the fourth quarter this year.
“With the current situation, we are now on a wait and see because we are worried how we can recoup this huge investment,” said Go during a press conference Friday.
The expansion program should be able to add additional 500,000 MT capacity and generate more employment to its existing 800 direct workers. This would also enable the company to expand into other products lines aside from capturing new markets like the specialty glass used in green buildings and other architectural design glass. The company is also planning to revive its automotive glass production in anticipation of growth in local demand for cars.
To support exports, PFGMI would like to strengthen its domestic base. Its market share though is dwindling to about 50 percent amid surging imports.
In 2015, the Department of Trade and Industry (DTI) lifted the mandatory certification standards of glass as a stopgap measure in an effort to facilitate ease of doing business in the country. Glass was also categorized as non-life threatening product.
Since there has been no mandatory standards certification of imported flat glass, PFGMI said the industry has been facing with substandard imports.
Go, however, said that since there is no product standards monitoring they there is no official data to back up its claim, but he said they have received various reports and complaints.
PFGMI suspects that import flat glass have been undergoing technical smuggling with importers misclassifying their products.
Thus, Go said that the best way to stop the influx of substandard flat glass, which is generally used in almost all buildings and new housing construction, is to restore this product under the mandatory standards certification to ensure safety and quality.
Responding to its earlier request, Go said that DTI Secretary Ramon M. Lopez has asked the consumer welfare group to look into their plight. DTI Undersecretary for consumer welfare Ruth Castelo already forwarded the petition to the Bureau of Product Standards.
The Federation of Philippine Industries also backed PFGMI’s petition to reinstate the mandatory standards of glass.
“They are not asking for any protection but just a level playing field,” said FPI Chairman Jesus Arranza. The glass industry is a member of FPI.
“PFGMI is the last domestic manufacturing company in the country and it is Filipinoowned,” Arranza pointed out.
Arranza said that DTI should learn from the lessons of the past citing what happened to National Steel Corp. and the domestic garment and textile manufacturing in the country. He recalled that basic domestic manufacturing industries have lost to imports because of lack of government support and the unabated smuggling.