July 07, 2014

AGC Glass plans to open production plant in KSA

European branch of AGC Glass, AGC Europe has signed a Letter of Intent to enter into a joint venture with Saudi Arabian glass company, Obeikan Glass.

The joint venture is to open a solar glass coating manufacturing plant by the start of 2016, to be built in Yanbu, Saudi Arabia. The plant will be on the same site as Obeikan’s float glass plant. This will allow “tight control of quality,” said Abdallah Obeikan, CEO of Obeikan Investment Group, “to optimize the production and logistics costs, and to achieve higher margins.”

The coatings are used to block out excess heat from the sun to improve the energy efficiency of buildings. Obiekan Glass is owned by the Saudi Arabian industrial entities, Obeikan Investment Group and Saudi Advanced Industries Company.

In October this year, owner of AGC Glass, Asahi Glass, converted one of its solar glass factories in China to make automotive products, at a cost of  ¥4.5 billion ($45.8 million), and also closed a PV glass plant in the US and a raw glass facility serving the Philippines’ PV market, in 2012. AGC also produces BIPV products for the European and Japanese markets.

Middle East solar glass market has grown 4 percent a year, and is estimated to continue as demand for energy saving improvements increases.

The region has ambitious PV deployment goals. It is widely expected to expand its own domestic PV manufacturing capabilities to enable it to capture more of the value chain as its solar deployment levels grow with glass for modules identified as one component that could be produced locally. 　

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2025/9/1

Obeikan Glass takes full ownership of Obeikan AGC for SAR 22.9M

The glass manufacturer agreed to buy AGC France Holding’s 50% stake, or 3,500 shares, in the target company for $3.77 million (SAR 14.4 million).

It will also acquire the 18.6% holding, or 1,302 shares, of Obeikan Investment Group (OIG), for SAR 5.26 million,
and the 12.4% stake, or 868 shares, held by Saudi Advanced Industries Co. (SAIC), for nearly SAR 3.51 million.

The deal terms include the settlement of dues, confirmation of payments, board resignations from seller representatives, ratification of amended bylaws, and termination of the JV agreement with AGC France.

The parties will sign cooperation, licensing, and technical assistance agreements, terminate coating supply and project management contracts, and the buyer will implement a capital increase, appoint new directors, and update the commercial register.

Obeikan Glass said the acquisition will be funded through existing cash, with the expected financial impact starting in Q4 2025. However, the deal is awaiting the contractual conditions and regulatory approvals in Saudi Arabia.

The move gives Obeikan Glass full ownership of Obeikan AGC, a company specializing in the production of high-performance coated glass (which was previously a JV 19% owned by Obeikan Glass).

The company explained that this acquisition will give the company greater control over its strategy and operations, enhance integration and synergies with the rest of its business lines, and support its long-term growth goals, particularly in providing high-quality glass products to its customers.