Asahi Glass | Top Message

AGC Group CEO, explains the substance of Grow Beyond, the AGC Group's management policy.

Building Foundations for Growth

The AGC Group's performance is currently being driven by the Display operations, but the high growth of today will not necessarily continue indefinitely. It is essential to move forward with building the foundations for the next round of growth while the Display operations are still growing, and we believe that it is precisely building the foundations for growth which is the priority challenge in Grow Beyond, the AGC Group's management policy.

Medium and Long-term Change in the Market Environment

It is expected that the structure of the world markets and environment surrounding resources and energy will have changed significantly by around 2030.

In addition to the markets in the developed countries, China, South America, and India, among others, will become key global markets. Moreover, the need to shift production sites from locations close to markets to regions that produce raw materials such as the Middle East and Russia or countries where raw materials are produced at low cost may rise due to mounting resource nationalism. Furthermore, there is likely to be a growing need to address the problem of climate change more seriously than in the past.

Grow Beyond is a policy under which the AGC Group will assess these changes, identifying them in a timely manner so that the Group maintains further growth as a top global company, centering on the glass operations.

Kazuhiko Ishimura
President & CEO

The Basic Concept of New Management Policy

Three Focus Points to Achieve 'Building Foundations for Growth'

To build foundations for growth, the AGC Group will focus on three points.

The first point of focus is the "Second Round of Globalization." Hitherto, the AGC Group has aggressively pushed ahead with globalization through such means as the acquisition of leading companies in Europe and North America, and establishing and operating production bases in Asia and Eastern Europe. In the future, the Group must seek to hold onto market share and boost profitability in important markets that include North America, Europe, and Japan. Meanwhile, newly emerging countries, such as the BRICs, are forecasted to experience extremely high GDP growth in the medium to long term. Therefore, the AGC Group will also focus on further expansion into these regions. Because these regions each have unique needs and are forecasted to follow different trajectories of growth from the markets in Japan, the U.S., and Europe, it will be necessary to make timely investments and establish business models that differ from those in Japan, the U.S., and Europe. This is a step ahead of the globalization of the past, in other words, it is the "Second Round of Globalization."

The second point of focus is "Delivering Technology Solutions for Climate Change." As a member of an industry that consumes huge volume of energy, the AGC Group will naturally make earnest efforts to solve the problem of climate change, moving forward by seizing on the problem as a new business opportunity.

The third point of focus is to become a "Glasstechnology-driven Company." The AGC Group will actively promote the further development of highvalue-added products, enhancement of cost competitiveness through improved production technologies, and building new business models that utilize technology, by further refining the glass-related technologies, which are the sources of growth for the Group, and differentiating them from the competitors.

The Platform to Realize 'Building Foundations for Growth'

In order to build the foundations for growth, the ideals and initiatives(*) of the former management policy "JIKKO" will be permeated and embedded as the DNA of the AGC Group. Moreover, the focus will be on the people who carry out building the foundations for growth and making the "JIKKO" mindset the Group's DNA. Under the slogan "Our People are Our Strength," we aim to be a group of companies in which organizational growth and personal growth complement each other to form a virtuous cycle of development.

(*) "JIKKO" initiatives: the five initiatives are: enhancing activities for CS; enhancing activities for quality management; improving ES and enhancing human resources development; enhancing Monozukuri (Quality Manufacturing) and reinforcing production site expertise; and permeating the "Look Beyond" Group Vision.

Our Thoughts on Grow Beyond

To "Grow" means to "develop" --- it not only means to grow in terms of just size, but also includes the notions of "improving capabilities" and "changing." "Beyond" means "to exceed or go past." The AGC Group will "Grow" (develop and change) "Beyond" (to exceed or go past) today's realms, including business fields, regions and markets, existing technology, and the former ways of working.

Kazuhiko Ishimura
President & CEO