The Company’s architectural glass business in Japan is facing an increasing cost burden to ensure a stable supply of architectural glass due to rising costs for maintenance and renewal of manufacturing-related facilities. In addition to the above, AGC's profitability continues to be pressured by persistently high prices of raw materials and sub-materials and logistics costs.
In this environment, AGC has implemented a number of measures including re-examining its investments, improving productivity, reducing costs, and streamlining its organization. However, AGC has determined that it will be difficult to secure the revenues necessary to maintain and renew its facilities in the future through corporate efforts alone, and therefore has decided to implement price revisions for architectural glass-related products in Japan.
Under its AGC plus-2023 medium-term management plan, announced in February 2021, the AGC Group has focused on improving the profitability and asset efficiency of its architectural glass business as a priority issue for the Group management, and is implementing a variety of initiatives in this area.
In the architectural glass business in Japan, the AGC Group will continue to create social and economic value through the provision of a stable supply of architectural glass over the long term and improved business profitability.