Asahi Glass Co. (AGC) recently announced that it will raise the selling prices of its architectural glass products marketed in Japan, starting from delivery on September 1. Specifically, the prices will be increased by 15-20% for flat glass products, 10-15% for mirror products, and 10-20% for processed glass products for architectural applications.
Manufacturing costs for architectural glass products in Japan have been surging as the market prices of fuels and raw materials keep soaring, while the Japanese yen has been rapidly weakened since 2013. In addition, increases in personnel and distribution costs resulting from a lack of manpower are affecting the profitability of the architectural glass business.
Under such circumstances, AGC has been taking various cost-cutting measures through productivity improvements and streamlining of its businesses. However, a further rise in crude oil prices caused by political uncertainty in the Middle East has made it difficult for AGC to offset the cost increase simply through corporate efforts, and the company has decided to revise the product prices of its flat glass and processed glass for architectural applications. AGC will continue its cost reduction measures to improve the earnings from its architectural glass business in Japan.