Glass, aluminum industries dispute claims of losses by Asahi Glass

The Philippine Chamber of Glass and Aluminum Industry, Inc. (PCGAII) yesterday sought to submit to the Department of Trade and Industry (DTI) additional data that would outright debunk claims of Asahi Glass Philippine (AGP) that it incurred huge losses because of perceived surge in the importation of figured glass, float glass and mirros.

The group asked the DTI-Bureau of Import services (BIS) for a special meeting to discuss the irrelevance and destructive impact to the local glass industry of Asahi’s petition seeking to raise tariffs on imported glass.

Asahi’s petition asked government to raise to 40-50 from 10 percent the tariffs on imported glass such as float glass, figured glass (clear and colored) and mirrors.

PCGAII spokesman Delano M. Valera said even the poor domestic sales performance Asahi reflected in the financial statements it submitted to the Securitiess and Exchange Comission (SEC) "is based on erroneous premises. In fact the certified financial data submitted by Asahi serves to prove beyond doubt that the losses incurred originated from interest, financial and other charges which are absolutely unrelated to the importation of glass."

Valera said Asahi’s domestic sales in 2000 and 2001 were upbeat, even surpassing its 1997 sales. "Downtrends in Asahi’s sales in 1998 and 1999 were within tolerable industry levels," he said.

"If ever Asahi reported losses of P101.5 million in 2000 and P611.9 million in 2001, it was not because of any glass import surge. The losses were due to its acquisition of the former Republic Asahi Glass Corp.," Valera stressed.

"It is now clear to us that Asahi’s objective is to eliminate small and medium glass enterprises and get 70-80 percent share of a market in which Asahi is already a dominant player," Valera stressed.

Valera urged all domestic glass industry stakeholders to "fight for our cause by stopping Asahi’s desperate attempt to fully monopolize the local glass and mirror industry, drive us out of business and get thousands of mainstream and support glass workers out of jobs."