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Manufacture of Glass and Glass Products in South Africa 2016

Nina Shand | South Africa | 04 April 2016

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Report Coverage

The Manufacture of Glass and Glass Products describes the industry in South Africa, highlights current conditions and discusses the factors influencing the success of the sector. Five industry players are profiled, including the dominant three manufacturers as well as Natglass Distributors (Pty) Ltd t/a National Glass, which is a manufacturer and wholesaler of flat glass, aluminium sliding doors, windows and mirrors, and Northern Hardware and Glass (Pty) Ltd, which manufactures glass products for the building and automotive industries.

The Manufacture of Glass and Glass Products

This report focuses on the manufacture of glass and glass products, an industry that is dependent on demand from other sectors of the economy, all of which have been under pressure. The glass manufacturing industry contributed 0.3% towards total manufacturing and the value of glass sales amounted to R9.317bn in 2015.

Competition Issues

The industry is dominated by three large players: PG Group, which owns companies in both the building and the automobile glass sector; Consol Glass, the largest producer of glass packaging products in Africa; and Nampak, which has increased glass bottling production capacity and now manufactures one-third of all glass bottle products in South Africa. Role players have been the focus of Competition Commission enquiries into allegations of price fixing and the division of markets since 2010, with the most recent investigation focusing on the automotive glass fitment and repair services industry.

Imports

Imports of glass products, which are cheaper than locally manufactured goods, are on the increase and pose a threat to the local sector. During 2015 glass and glassware to the value of R3.509bn was imported, up from R2.870bn in 2014 and R2.566bn in 2013. In response the larger companies are looking at expansion in the rest of Africa in an attempt to offset declining domestic profits.

Table of Contents

PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 3
2.2. Geographic Position 4
3. SIZE OF THE INDUSTRY 5
4. STATE OF THE INDUSTRY 9
4.1. Local 9
4.1.1. Corporate Actions 12
4.1.2. Regulations 13
4.1.3. Enterprise Development and Social Economic Development 14
4.2. Continental 15
4.3. International 16
5. INFLUENCING FACTORS 17
5.1. Economic Environment 17
5.2. Rising Input Costs 18
5.3. Labour 19
5.4. Increase in Cheaper Imports 21
5.5. Bottled Wine Exports 23
5.6. Cyclicality 24
5.7. Environmental Concerns 24
5.8. Technology, Research and Development (R&D) and Innovation 25
6. COMPETITION 26
6.1. Barriers to Entry 27
7. SWOT ANALYSIS 27
8. OUTLOOK 28
9. INDUSTRY ASSOCIATIONS 28
10. REFERENCES 30
10.1. Publications 30
10.2. Websites 30
APPENDIX 1 32
Regulations of the South African Bureau of Standards (SABS) 32
APPENDIX 2 34
South Africa Glass and Glazing Association (Manufacturing) Members 34
COMPANY PROFILES 37
CONSOL GLASS (PTY) LTD 37
NAMPAK PRODUCTS LTD 40
NATGLASS DISTRIBUTORS (PTY) LTD 43
NORTHERN HARDWARE AND GLASS (PTY) LTD 45
PG GROUP (PTY) LTD 47
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