French group Saint-Gobain to increase manufacturing in China

With China entering a new era of green and innovation-led growth, Saint-Gobain SA, the French industrial group, plans to put the second phase of its Yangzhou manufacturing base into operation in 2024 to further meet the soaring market demand for construction materials in China's eastern region.

Ludovic Weber, Saint-Gobain's CEO for Asia-Pacific, said the equipment installation is planned to begin in the second half of this year.

After the completion and commissioning of this project, the French company will further enhance its production capacity of high-quality paper-faced gypsum board and construction gypsum powder to meet the surging demand of light and sustainable construction in Eastern China.

"The second phase of the Yangzhou plant is the fifth gypsum board production line built by Saint-Gobain in China," said Weber, adding the company's gypsum-based solutions can save up to 80 percent of greenhouse gas carbon dioxide, or CO2 emissions, compared with traditional construction methods.

Therefore, this project directly contributes to China's dual carbon goals, he said.

Upon the completion of the project's second phase, the executive said that Saint-Gobain's Yangzhou manufacturing base would serve the central and northern parts of Jiangsu province, and also cities in Anhui province.

"We will continuously give full play to our strengths in low-carbon technologies to enable the sustainability goals of our Chinese customers," Weber added.

Eager to enhance its earning strength, the French company will put a new factory into operation in Yuzhou, Henan province, this year. It currently operates more than 50 plants across China.

"In addition to ensuring the legitimate rights and interests of global companies, China will create a better business environment for foreign companies this year," said Bai Ming, deputy director at the Institute of International Market of Beijing-based Chinese Academy of International Trade and Economic Cooperation, noting that such measure is the acceleration of the establishment of a unified national market.

Supported by more than 160,000 employees globally, Saint-Gobain's sales revenue amounted to 51.2 billion euros ($55.8 billion) in 2022.