Report Coverage
This report focuses on the manufacture of glass and glass products. It includes comprehensive information on the state and size of the sector, corporate actions and developments and technological and environmental trends. There are profiles of 23 companies including Isanti Glass, which bought Nampak Glass, South Africa’s second largest manufacturer of glass packaging, for an estimated R1.5bn and other dominant players including Consol and PG Group. Other profiled companies include Cape Composite and W Tech Manufacturing, which make fibreglass products, safety glass companies such as C and C Safety Glass and FGW Safety Glass (Furman Glass) and glassblowers such as Listco (Glass Tech).
Introduction
This report focuses on the manufacture of glass and glass products. In 2019, manufacturing sales of glass and glass products amounted to R12.47bn, up from R11.9bn in 2018. Glass and glass product manufacturing sales for the first quarter of 2020 were valued at R2.8bn. The sector is affected by consumer markets, as by the economic performance of the food and beverage, automobile, construction, homeware, pharmaceutical, cosmetic, mining, aircraft manufacture, electronic manufacture, and solar energy sectors. A significant recent industry development has been Isanti Glass’ acquisition of Nampak Glass, South Africa’s second largest manufacturer of glass packaging, for an estimated R1.5bn.
Strengths
• High rate of recyclability; use of cullet reduces energy and input costs.
• Increasing use of glass, including smart glass, in architectural design and construction.
• Industry provides products to major sectors including automotive, building, food and beverage sectors.
• Innovative research and development.
Weaknesses
• Capital-intensive nature of the industry is a major barrier for new entrants.
• Dependent on the demand for glass in a number of other industries.
• High maintenance and energy costs.
• Reliance on a few suppliers of raw materials.
• Vulnerable to domestic and global economic fluctuations.
Opportunities
• Cullet recovery can reduce costs.
• Demand for energy efficiency in buildings.
• Expansion into the solar sector.
• Expansion of supply and manufacturing capacity across Africa.
• Growing anti-plastic sentiment and demand for environmentally friendly, reusable and recyclable packaging.
• Growing demand for glass packaging in Africa, especially in the beer and beverage markets.
• Growing demand for glass, including smart glass, in construction.
• Import duties on certain glass products allow local manufacturers opportunity to recapture market share lost to imports.
• Increasing global demand for specialised safety glass (bulletproof, etc.).
• Innovation is continuing to look promising.
• The increasingly important role of glass technology in the automotive industry.
Threats
• Cheap imports.
• Declining demand in the industries to which it supplies.
• Downswing in South Africa’s automotive manufacturing.
• Further increases to already high input costs limit the growth of the industry and survival of smaller operations.
• Highly regulated safety standards and the risk of compliance failure.
• Inconsistent electricity supply due to load-shedding.
• Silica supply risks.
• Substitute products.
Outlook
South Africa is in recession, and the coronavirus pandemic has negatively affected the global outlook for 2020 and 2021, the full implications of which are still unknown. South Africa’s economy is expected to contract by 7.2% in 2020. Investec expects rating agencies to further downgrade South Africa in light of the Supplementary Budget Review delivered on 24 June 2020, and South Africa’s anticipated inability to repay its debt. As mentioned in the report, the state of South Africa’s glass manufacturing industry is strongly linked to the economic performance of the food and beverage, construction, and automotive industries, amongst others. Encouragingly, glass manufacturers supplying to the construction industry have reported that as coronavirus-related regulations loosen, business is starting to pick up again. Based on the outlooks of the sectors it supplies, in the longer term, the demand for glass and glass products should continue to grow. However, industry players are currently facing difficult decisions around how best to move forward and stay afloat during a national and global recession and the induced short-term drop in demand. The alcohol ban created additional threats to glass manufacturers which are major providers of products to the alcoholic beverage producers.
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Historical Reports
The Manufacture of Glass and Glass Products Industry in South Africa 2018-05-15
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View Report Add to CartThe Manufacture of Glass and Glass Products Industry in South Africa 2016-04-04
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View Report Add to CartTable of Contents
[ Close ]PAGE | ||
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1. | INTRODUCTION | 1 |
2. | DESCRIPTION OF THE INDUSTRY | 1 |
2.1. | Industry Value Chain | 4 |
2.2. | Geographic Position | 7 |
3. | SIZE OF THE INDUSTRY | 8 |
4. | STATE OF THE INDUSTRY | 10 |
4.1. | Local | 10 |
4.1.1. | Corporate Actions | 13 |
4.1.2. | Regulations | 13 |
4.1.3. | Enterprise Development and Socio-Economic Development | 16 |
4.2. | Continental | 17 |
4.3. | International | 18 |
5. | INFLUENCING FACTORS | 20 |
5.1. | Economic Environment | 20 |
5.2. | Input Costs | 21 |
5.3. | Research and Development (R&D), Technology and Innovation | 21 |
5.4. | Labour | 23 |
5.5. | Environmental Concerns | 25 |
5.6. | Cyclicality | 26 |
6. | COMPETITION | 27 |
6.1. | Barriers to Entry | 28 |
7. | SWOT ANALYSIS | 28 |
8. | OUTLOOK | 29 |
9. | INDUSTRY ASSOCIATIONS | 30 |
10. | REFERENCES | 30 |
10.1. | Publications | 30 |
10.2. | Websites | 31 |
APPENDIX 1 | 33 | |
Summary of Notable players | 33 | |
COMPANY PROFILES | 38 | |
C AND C SAFETY GLASS (PTY) LTD | 38 | |
CAPE COMPOSITE (PTY) LTD | 40 | |
CGIS REFRIGERATION GROUP (PTY) LTD | 41 | |
COMPASS GLASS (PTY) LTD | 43 | |
CONSOL GLASS (PTY) LTD | 45 | |
CREATEX (PTY) LTD | 49 | |
F G W SAFETY GLASS (PTY) LTD | 51 | |
GLASS PARTNERS HOLDINGS (PTY) LTD | 53 | |
HI TECH SAFETY GLASS SA (PTY) LTD | 55 | |
ISANTI GLASS 1 (PTY) LTD | 56 | |
LISTCO GLASSBLOWERS (PTY) LTD | 58 | |
MCCOYS GLASS MANUFACTURING CC | 59 | |
NATGLASS DISTRIBUTORS (PTY) LTD | 61 | |
NIVITEX FIBREGLASS AND RESINS GAUTENG CC | 63 | |
NORTHERN HARDWARE AND GLASS (PTY) LTD | 65 | |
PG GROUP (PTY) LTD | 68 | |
PRIMA PUTTY (CAPE) (PTY) LTD | 72 | |
RSG SAFETY GLASS PRODUCTS (PTY) LTD | 74 | |
S A BULLET RESISTENT GLASS COMPANY (PTY) LTD | 76 | |
THERMOGLASS (PTY) LTD | 77 | |
UNIFRAX EMISSION CONTROL SOUTH AFRICA (PTY) LTD | 79 | |
UNITED GLASS BLOWERS CC | 81 | |
W TECH MANUFACTURING (PTY) LTD | 82 |