Saint-Gobain looks to expand market presence in China

Flags of China, France and Saint-Gobain flutter at the glass factory of Saint-Gobain Sekurit (Shanghai) Co Ltd in Shanghai, Dec 4, 2013. [Photo/IC]

Increasing demand for high-quality homes in China is creating opportunities for companies such as French construction materials company Saint-Gobain.

The company is looking to double its presence in the country in the coming three years, as China proactively attracts foreign investments as part of an effort to shore up the economy.

Saint-Gobain's performance in China has been solid and the country has always been a very important market for the company, said Javier Gimeno, CEO of Saint-Gobain's Asia-Pacific operations.

The Chinese market only represents 4 percent to 5 percent of Saint-Gobain's global sales at the moment, a small percentage compared to the importance of the Chinese economy in the world. Yet, Gimeno expressed optimism that figure would grow rapidly.

"We believe our presence in the country will double in a few years, as we see increasing demand for higher-quality products driven by the burgeoning mid-income group in the country," he said.

Environmentally friendly building materials have been acquiring a much larger proportion of the world market in recent years.

Navigant Consulting Ltd forecast the global market for green construction materials will reach $254 billion by 2020.

"Attracted by the size of the economy in China, we see more French companies coming to the country having faith in the Chinese economy's massive potential," said Gimeno, who is also president of the French Chamber of Commerce and Industry in China.

Jean-Maurice Ripert, France's ambassador to China, said the country's economy is developing toward higher quality and sustainability.

With the continuous implementation and deepening of the Belt and Road Initiative, more French companies will participate in the construction of China's economy, more Chinese enterprises will also join in and consider investing in France, he said.

"We see greater growth opportunities for the company in the country as China's top leadership have also stressed making greater strides in reform and openingup, and Saint-Gobain wants to contribute and help both China and the company to continue growing," said Gimeno.

"As the business environment has been improving over the years, we believe China's further reform and opening-up will level up its business environment to a new height, and inject new strength into the building materials industry."

According to Gimeno, China's coming transformation into a green economy offers massive opportunities for Saint-Gobain, as well as many other French companies who share the same model of quality development.

Compared with 20 years ago, customers in China today attach more importance to quality over price, and the middle-income bracket would like to buy the best they can afford, he said.

Automobile glass and construction materials are among Saint-Gobain's fastest-growing businesses in China.

One popular product range is the company's glass windows that help to reduce heat in the summer and block heat in the winter, not only saving energy but also reducing hazardous gas emissions from powering heating and air conditioners.

Gimeno said this demonstrates Chinese consumers' ever-increasing focus on product performance.