Green tech spurs demand for glass

Demand for glass applications is growing at a conservative 8- 10 percent annually in the next three years because of the robust construction industry particularly in the non-residential sector, which is now adopting green technology that specifies the use of glass.

Ronilo Matas, executive director of the Flat Glass Alliance of the Philippines, Inc. ( FGAPI), told a press conference for the Glasstech Asia 2014 to be held on Nov. 25-27 at the World Trade Center, that the growth projection is only for raw glass or flat glass, which current demand is at $80 million.

Asahi Glass Philippines is the country’s lone producer of flat glass, which will in turn be processed into high value glass products such as tempered and double glazed glass products.

The growth projection is in line with the Philippine construction boom. FGAPI noted that the total number of construction permits rising from 29,424 to 32,729 in the second quarter in 2014. Much of this real estate growth is driven by the expanding outsourcing sector and multinational companies. Construction spend for 2011- 2016 is estimated to reach $ 70 billion, a large chunk of which will go into glass products for housing and building projects.

Matas noted that demand has shifted into the non-residential sector from what used to be strong growth in the residential sector.

In the first quarter of this year, he said, the non-residential sector already accounted for 49 percent of total glass demand while the residential sector only accounts for 10 percent only.

This is because the glass application in the residential sector only accounts for 10 percent of total cost of the house, but glass applications in tall office buildings have a higher component of between 35 to 40 percent.

Steven Tan, general manager of Singapore Conference and Exhibition Management Services, said that in Singapore glass applications account for as much as 35 percent of a total cost of a new building.

Matas, however, said that while Asahi Glass Philippines still accounts for as much as 60 percent of the total market for raw glass, imports particularly from China have quickened with safety and standards issues. Imported glass now accounts for 45 percent of the local glass market.

Processors are also investing into tempering and double glazing facilities to be able to supply to the local requirement. There are now a total of 19 tempering facilities in the country from only 4 in 2012.

Asahi Glass Philippines has been concentrating in the production of raw glass and imports the high value glass products from its affiliates in the region. This Japanese- owned firm has also increased its production capacity for raw glass to 520 metric tons from the 400 MT and can still raise its capacity by another 20 percent.

Edgar Sabidong, board member of the Philippine Green Building Council (PHILGBC), said green architecture creates efficient energy use in buildings by maximizing natural daylight and offering better visibility, improved thermal and indoor comfort. (BCM)