PAUL VINCENT GO President

PIONEER FLOAT GLASS MANUFACTURING, INC.

It is very seldom that traders will take the hard route of manufacturing. Buoyed by a sheer dream to make it big, glass and aluminum trader PAUL VINCENT GO decided to tread this path of the giants to save the country’s lone glass manufacturing operation in peril.

Now, the young entrepreneur owns and runs the formerly AGC Flat Glass Philippines, Inc., a wholly-owned unit of Asahi Glass of Japan, the world’s leader in glass manufacturing.

Entrepreneur Go’s entrepreneurial skill was developed right in the family’s aluminum factory where at 9 years old he was assigned as a delivery boy. At 10 years old, he was already fixing broken machines. At school, he sold undershirts out of the P1,000 capital loan from his parents. Then he went on to sell Seiko 5 watches on installment basis and rice to their workers. There were 200 workers at the factory.

With P1 million capital from his father, Wilson Go, the younger Go set out into a bigger business in 1998 and upon graduation from high school to put up a trading company TQMP Glass Manufacturing Corp. for glass distribution. It is a spin off company from the family’s aluminum business.

“In a few weeks’ time, I was able to roll the money and recover the capital. I think that makes my father proud,” says Go noting he had to skip classes in college to tend to his business.

In July 2017, Go’s TQMP acquired AGC Flat Glass Philippines, Inc., a wholly-owned subsidiary of Japan’s Asahi Glass (AGC), the world’s leading glass manufacturer. The glass company, an industry pioneer of the very few remaining manufacturing operations in the country, has been operating for over 60 years producing world standards glass products.

Now, the old Asahi plant is sporting a new name – Pioneer Float Glass Manufacturing Inc. It is a wholly-owned subsidiary of the WDG Group of Companies, a multi-business group with diversified portfolio in glass and aluminum manufacturing.

The trader Since Go has long been in the glass trading, it dawned upon him to put up his own glass manufacturing plant. The Japanese, who have been having problems with its struggling Philippine unit, got wind of Go’s ambition and made an offer. The negotiation was a long arduous back and forth.

“It took us two years, working on 22 hours and sometimes 24 hours with our lawyers,” he says recalling that at one crucial point, the negotiation almost collapsed.

“It was a difficult period, I had sleepless nights, because this involves huge money and big responsibilities, but we want to save the company,” he says without divulging the acquisition cost.

Among the banks, only Asia United Bank (AUB) gave its full backing to Go’s ambition. The acquisition by TQMP of Asahi Glass was being funded by a combination of equity and debt financing from AUB.

“Although AUB is still a small bank, we got their full support,” says Go grateful to his financier even as the big banks turned him down, doubtful as to how a 37-old glass trader can go against the giants.

“The big banks would say ‘you’re young. But even if I bring my father, I am still the one handling the company so I need to transact with them personally. I need them to trust me without my father,” he adds.

The big banks have big requirements with huge collaterals, but AUB was very supportive with less stringent rules. Amid difficulties, Go has been able to pay his debt on time. He did not divulge how much he owes AUB but said all of it were used for the acquisition of Asahi.

Now, these big banks are offering loans to Go. He may engage with them for their future expansion plans but Go said he will be always be indebted to AUB for being the very first bank to come to their aid when they were just starting.

Dreams “We all have dreams to grow big,” says Go and his dream was to go into glass manufacturing after having a wellentrenched local distribution network. It just so happened that Asahi Glass presented a good opportunity. The pride of owning and running a homegrown Filipino manufacturing company but owned by a foreign multinational only fueled his ego further.

“We always would like to prove that Filipinos can do it,” says Go recalling that overwhelming feeling engulfing him the very first time he went inside the former Asahi Pasig plant.

Now, the Japanese are commending Go for what he has done to the company in such a short period of time.

“They are overwhelmed by the things that we’ve done,” says Go noting that their being local and their knowledge of the market has made them more flexible.

“I don’t give up on challenges, but it makes its easier because I have been in this industry long enough and the employees are all behind me,” he adds.

But the realization of a trader becoming a manufacturer struck Go the most. Coming from a trader’s perspective, his transformation as a manufacturer was loaded with responsibilities.

“I realize that manufacturing is a lot different from trading because the future of hundreds of workers is in your hands. Trading is just all about money, a plant is the lifeline of employees and their families,” says Go, who has 100 people at his trading business as against 800 in the glass manufacturing plant.

Moving forward Given the choice, Go could have turned around the company much faster, but he has to consider the welfare of his people if he has to implement drastic measures.

“Honestly, this is not all about myself but my people, they are my bigger responsibility. As long as they have jobs, I am happy,” he adds.

To sustain its growth, Go said they are planning to put up a bigger float furnace plant to expand its product lines outside of basic float glass, adding more value-added items, such as mirrors, coated glass, specialty glass used in green buildings, and other architectural design glass to be able to compete not just regionally but globally. At present, the plant in Pinagbuhatan, Pasig produces only the very basic float glass.

The plan is to start by the first quarter of next year with the financial muscle of AUB and other local banks. The planned integrated glass manufacturing facility to be located in a 28hectare property in Northern Luzon will three to four times bigger than its Pasig plant. This new project is estimated to cost P5 billion.

He is already excited by the thousands of livelihood opportunities the project will bring to the host community. The company is also planning to revive its automotive glass production in anticipation of growth in local demand for cars.

The plan is to double the 500 tons per day capacity of the existing plant with more variety of products and downstream business. Besides, the company is also now operating at full capacity with 93 percent capacity utilization.

To support exports, PFGMI would like to strengthen its domestic base. Despite its being the lone float glass manufacturer in the country, Pioneer only accounts for roughly 50 percent market, but is slowly increasing.

Standards

The operation of this Filipino-manufacturing company has been operating on without government support. This time, however, they are asking the government – the reimposition of mandatory standards on all glass products, imported or local, to be subjected to the same quality checks.

“We are not monopolizing the domestic industry, we just want mandatory standard to ensure safety and quality of all glass products distributed in the country,” he adds.

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, the industry is faced with substandard imports.

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 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 on glass products.

With the huge investment requirement, Pioneer needs government support for a level playing field.

“We should have one standard and that is the world standards, which is adopted under the Philippine National Standards,” says Go noting that they have been strictly following safety quality standards as what the Japanese have been doing when they were still running the plant.

“We did not change any formulation, we follow the standards because we also export,” he adds.

As a local manufacturer, Pioneer is subjected to higher prices of their raw materials including silica sand. They have to contend with the fluctuation in foreign exchange.

Aside from local production, the new plant will strengthen the company’s exports business.

“We can be a bigger international player,” says Go.

At present, the company is exporting 20 to 25 percent of their production, but their partners are requiring more. Thus, he said, exports could go up to 50 percent of total. Korea even wants all of its products.

But, Go needs to strengthen its domestic base because it is “spinal cord” to support export.

Lessons

The young businessman, who spent most of his time at the family factory, values quality assurance at production levels. Thus, he is always hands-on in all of his businesses to ensure that quality standards are followed.

“We just don’t rely on reports, we are there every step of the way,” says Go.

He also personally interacts with workers down to the lowest ranks to encourage cooperation among them.

According to Go, the dedication, hard work and the strong will of their employees to proceed has made him and the management more determined to do his share of turning the company around.

“It was a losing proposition when we came in, but now we are recovering,” he says. When TQMP took over the company, he made sure nobody gets displaced, unless they want to voluntarily leave.

“My philosophy is we want to continue and grow the company, but let us be in this together because I am not superman,” says Go.

“I cannot lose my face, that is why I am working hard to honor my word,” he adds as he likened his situation nowadays as the Philippines against the world because everyone in the glass manufacturing industry is watching them.

“The world is watching us because we are an eye opener being a neophyte acquiring the giant Asahi, which is the world’s biggest,” he says. Even the banks and the business sector are closely watching him.

According to Go, they were the only group being offered and pursued by the Japanese. They have maintained good relations with some Asahi people still working with them as technical consultants.

“They are overwhelmed of the things that we’ve done,” says Go noting that their being local and their knowledge of the market has made them more flexible.

“The life changing lessons I’ve learned in manufacturing business is to be patient, do not rush things. If others underestimate you, don’t give up just go on because they do not know what you are doing. This is like a cake, before you can eat it you have to prepare and think how to proceed to come up with a tasty finished product,” says Go.

Family

The son of hardworking entrepreneur parents, Go witnessed how his parents grow from scratch.

The burden of turning the company around lies heavy on his shoulder, his wife and the entire family.

“I owe it a lot to my father, had it not for him, I could not have made it to where I am today,” says the teary-eyed Go of his 65-year old dad.

The eldest of four siblings, Go is conscious that they do not squander what their parents have built over the years.

But most of all, the father of three kids, has learned to value his family more, especially his father, who taught him hard work. He also values more his employees. They are the reason he sleeps past midnight and wakes up at 4:30 in the morning.

“Had it not for my father, there is no manufacturing plant. My dad has urged me not to give up during those very difficult times,” he says.

His deep respect for his parents has been extended to his business that he always looks into that value in an applicant. He observes how the younger generation now trifle the core value of love and respect of parents.

He believes that “Children who love and respect their parents always do the right thing. Those family-oriented individuals, I am certain, have good hearts than those who are not, that’s the difference.”

Go learned all these while he toiled with his parents grew in the factory, ate in the sidewalks and rode the trains, while his classmates played basketball and on vacation abroad. He looks up to the Jacinto Ng, the owners of AUB and to Lucio Tan for their simplicity and their ability to relate with those lower than them.

Even as he tentatively set forth to become the giant in the glass industry, Go is determined to make Pioneer, one of the very few remaining manufacturing plants in the country standing tall, proudly a Filipino company.