- Saint-Gobain
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For other uses, see Saint Gobain (disambiguation).
Saint-Gobain S.A. 
Type Société Anonyme (Euronext: SGO) Industry Manufacturing, retailing Founded 1665 Headquarters Courbevoie, France Area served Worldwide Key people Pierre-André de Chalendar (Chairman and CEO) Products Construction materials production and retail, glass, ceramics, plastics, abrasives, packaging Revenue €40.12 billion (2010)[1] Operating income €3.117 billion (2010)[1] Profit €1.129 billion (2010)[1] Total assets €44.00 billion (end 2010)[1] Total equity €18.23 billion (end 2010)[1] Employees 187,890 (end 2010)[1] Website www.saint-gobain.com Saint-Gobain S.A. is a French multinational corporation, founded in 1665 in Paris and headquartered on the outskirts of Paris at La Défense and in Courbevoie. Originally a mirror manufacturer, it now also produces a variety of construction and high-performance materials.
The company has its head office in Les Miroirs in La Défense and in Courbevoie.[2][3] The 97-metre (318 ft) building served as the company head office since 1981.[3]
Contents
History
1665-1789: Manufacture royale
Main article: Manufacture royale de glaces de miroirsThe company was founded in October 1665 as Manufacture royale de glaces de miroirs under the direction of French minister of finance Jean-Baptiste Colbert. The company, which had the informal name Compagnie du Noyer from the beneficiary of the monopoly granted to it, the financier Nicolas du Noyer, a receveur of taxes of Orléans, was created for a period of twenty years and would be financed in part by the State.
An Early Saint-Gobain Emblem
Since the middle of the 17th century, luxury products such as silk textiles, lace and mirrors were in high demand. In the 1660s, mirrors had become very popular among the upper classes of society: Italian cabinets, ballrooms, châteaux and ornate side tables and pier-tables were decorated with this expensive and luxurious product. At the time, however, the French were not known for mirror technology; instead Venice was known as the world leader in glass manufacturing, controlling a technical and commercial monopoly of the glass and mirror business.[citation needed] Colbert saw Manufacture royale de glaces de miroirs as a way for France to become completely self-sufficient in meeting domestic demand for luxury products.[4]
To compete with the Italian mirror industry, Colbert commissioned several expatriate Venetians. Soon the mirrors created in the Faubourg Saint-Antoine under the French company began to rival those of Venice. The French company was capable of producing mirrors that were 40 to 45 inches long, which at the time was considered impressive. Competition between France and the Venetians became so fierce that Venice considered it a crime for any glass artisan to leave and practice their trade elsewhere, especially in foreign territory.
In 1683 the company's financial arrangement with the State was renewed for another two decades. However, in 1688 the rival Compagnie Thévart was created, also financed in part by the state. Compagnie Thévart used a new pouring process that allowed it to make plate glass mirrors measuring at least 60 inches long by 40 inches wide, much bigger than the 40 inches the Compagnie du Noyer could create.
For seven years, the two companies were in competition until, in 1695, the economy slowed down and their technical and commercial rivalry became counterproductive. Under an order from the French government the two companies were forced to merge together, creating the Compagnie Plastier.
In 1702 Compagnie Plastier declared bankruptcy. A group of Franco-Swiss Protestant bankers rescued of the collapsing company changing the name to Compagnie Dagincourt. At the same time the company was provided royal patents which allowed it to maintain a legal monopoly in the glass manufacturing industry up until the French Revolution.
1789-1910: Industrial revolution
In 1789, as a consequence of the French Revolution, the state financial and competitive privileges accorded to Compagnie Dagincourt were abolished. The company now had to depend on the participation and capital of private investors, although it continued to remain partly under the control of the French state.
In the 1820s, Saint-Gobain continued to function as it had under the Ancien Regime, manufacturing high quality mirrors and glass for the luxury market. However, in 1824, a new glass manufacturer was established in Commentry, France and in 1837 several Belgian glass manufacturers were also founded. While Saint-Gobain continued to dominate the luxury, high quality mirror and glass markets, its newly created competitors focused their attention on making medium and low quality products. By manufacturing products of such quality, mirrors and glass became affordable for the masses. In response the company extended its product line to include lower quality glass and mirrors.
In 1830, just as Louis-Philippe became King of the newly restored French Monarchy, Saint-Gobain was transformed into a Public Limited Company and became independent from the state for the first time.
While mirrors remained their primary business, Saint-Gobain began to diversify their product line; glass panes for skylights, roofs and room dividers, thick mirrors, semi-thick glass for windows, laminated mirrors and glass, and finally embossed mirrors and window panes. Some of the more famous buildings that Saint-Gobain contributed to during that period were the Crystal Palace in London, le Jardin des Plantes, les Grand et Petit Palais and les Halles in Paris, the Milan railway station and buildings in Philadelphia, Sydney and New York.[citation needed]
Saint-Gobain merged with another French glass and mirror manufacturer, Saint-Quirin, in the mid-19th century. After the merger the company was able to gain control of 25% of European glass and mirror production (before it had only controlled 10—15%). In response to growing international competition the company began to open up new manufacturing facilities in countries without any domestic manufacturers.[where?]
Saint-Gobain cast the glass blanks of some of the largest optical reflecting telescopes of the early 20th century, including the ground-breaking 60-inch Hale telescope (online in 1908) and 100 inch (2.5 m) Hooker telescope (online 1917) at Mount Wilson Observatory (USA), and the 72-inch Plaskett telescope (online in 1918) at Dominion Astrophysical Observatory (Canada).
1910-1950: Post industrial revolution
Saint-Gobain's experienced significant success in the early 20th century. In 1918 the company expanded its manufacturing to bottles, jars, tableware and domestic glassware.
In 1920, Saint-Gobain extended its businesses to fiberglass manufacture. Fiberglass was being used to create insulation, industrial textiles, and building reinforcements. In 1937 the company founded Isover, a subsidiary fiberglass insulation manufacturer.
During this period the company developed three new glassmaking techniques and processes; firstly a dipping technique used to coat for automobile windows which prevented glass from shattering in the event of an accident. As a result of this 10% of Saint-Gobain's 1920 sales came from the automobile industry and 28% in 1930. A few years later another technique was developed that allowed glass to be shaped and bent.[clarification needed] Finally, a process was developed to coat glass with aluminum allowing it to be used as a conductor and allowed the company to create products such as radiavers (a glass heater).
1950–1970: Pont-à-Mousson merger
Between 1950 and 1969, Saint-Gobain's sales rose at a rate of 10% per year. Its work force grew from 35,000 in 1950 to 100,000 in 1969. By the end of the 1960s, Saint-Gobain had more than 150 subsidiaries under its control.
Glass and fiberglass sales benefited from the booming construction industry and the rise in mass consumption after the Second World War. Saint-Gobain's yearly glass production went from 3.5 million m² in 1950 to 45 million m² in 1969. In 1950, fiberglass only represented 4% of the company's turnover, in 1969 this had grown to 20%.
Domestic sales in France accounted for only a fifth of the companies revenue; Spain, Germany, Italy, Switzerland and Belgium were also important markets.
In 1968, Boussois-Souchon-Neuvesel (BSN), a French industrial group, made a hostile takeover bid for Saint-Gobain. The company looked for a "white knight" to help fend off the bid. Multinational corporation Suez suggested that Saint-Gobain and Pont-à-Mousson (another French industrial group) merge in order to maintain independence from BSN. After the merger, Saint-Gobain-Pont-à-Mousson, later known simply by the name Saint-Gobain, produced pipes in addition to glass and fiberglass.
1971–1986: Nationalisation
The next fifteen years were a time of change and reorganization for the newly merged companies. In the 1970s, Western economies were suffering a sharp downturn. Saint-Gobain's financial performance was adversely affected by the economic and petrol crisis.
In 1981 and 1982, 10 of France's top-performing companies were nationalized by the socialist Fifth Republic of France. By February 1982, Saint-Gobain was officially controlled by the state. However, the company did not last long as a government-owned corporation; it was re-privatized in 1987.
1986-Present: Expansion
When Saint-Gobain once again became a private enterprise, control of the company quickly changed hands. Jean-Louis Beffa, an engineer and graduate of the École Polytechnique, became the CEO. Beffa invested heavily in research and development and pushed strongly for the company to produce engineered materials (such as abrasives and ceramics).
Under Beffa the company continued to expand internationally; setting up foreign factories and acquiring many of its foreign competitors. In 1996 the company bought Poliet (the French building and construction distribution group) and its subsidiaries such as Point P. and Lapeyre, this expanded Saint-Gobain's product line into construction materials and their distribution.
Company structure
Committees
Executive committee
- Pierre-André de Chalendar, CEO
- Lourent Guillot, CFO
- Bernard Field, Corporate Secretary
- Guillaume Texier, President of Corporate Planning, Secretary of the Executive Committee
General management committee
- Pierre-André de Chalendar, Chairman and Group CEO
- Laurent Guillot, Group CFO
- Paul Neeteson, General Delegate to Germany and Central Europe
- Benoît Bazin, President of the Building Distribution Sector
- Jean-Claude Breffort, President of Human Resources and International Development
- Gilles Colas, General Delegate to the North America Region
- Emmanuel Normant, General Delegate to the Asia-Pacific Region
- Jérôme Fessard, President of the Packaging Sector
- Bernard Field, Corporate Secretary
- Jean-Pierre Floris, President of the Flat Glass Sector
- Claude Imauven, President of the Construction Product Sector
- Jean-François Phelizon, Advisor to the CEO
- Didier Roux, President of Research and Development
- Guillaume Texier, President of Corporate Planning
Financial data
Financial data, As of 2008[update], in millions of euro.[5]
Year 2002 2001 2002 2003 2004 2005 2006 Sales 28 815 30 390 30 274 29 590 32 025 35 110 41 596 EBITDA 4 194 4 317 4 185 3 800 4 086 3 903 5 431 Net Results 1 517 1 134 1 040 1 039 1 112 1 294 1 637 Net Debt 8 217 8 614 7 012 5 657 5 566 12 850 11 599 Staff 171 125 173 329 172 357 172 811 181 228 199 630 206 839 Business units
The company is built around five business sectors: Building Distribution, Construction Products, Flat Glass, Containers / Packaging and High-Performance Materials.
Building distribution
Saint-Gobain's Building Distribution (building supplies) division was created in 1996 since then it has grown both internally and through acquisitions (in France with Point P. and Lapeyre, the UK with Jewson and Graham, in Germany, the Netherlands and Eastern Europe with Raab Karcher and in the Nordic Countries with Dahl). The division has 4,000 stores in 24 countries and employs 63,000 people worldwide. Its 2006 Sales amounted to 17.6 billion euros. The divisions current subsidiaries are:
- CertainTeed
- SGBD UK
- Raab Karcher
- Point P.
- Lapeyre
- Dahl
- Norandex Distribution
Construction products
The Construction Products division manufactures drywall, acoustic and thermal insulation, façade coatings, roofing, interior and exterior products and pipes. It employs 45,000 people worldwide and in 2006 had sales revenues of 10.9 Billion Euros. Saint-Gobain Gyproc Saint-Gobain Gyproc India is the leader in offering gypsum platerboards and finishing plasters for interiors.
Flat glass
The Flat Glass division manufacturers glass products including self-cleaning, electrochromic, low-emissivity and sun-shielding glass. It is active in 39 countries targeting emerging economies, a market that now accounts for more than one third of the divisions sales. It employs a global workforce of 37,100 and in 2006 had sales revenues of 5.1 billion Euros.
The Flat Glass division is currently building a plant to produce photovoltaic cells jointly with Shell, and is developing a pilot factory for the production of electronic glass in Spain.
High performance materials
The High Performance Materials division conducts research into various areas of materials science, energy, the environment and medicine; such as fuel cells or particle filters. It operates centers in Cavaillon, Northborough and Shanghai employing 35,800 people. Overall, the division's sales are made up of at least 30% new products, in 2006 total sales revenue was 4.9 billion Euros.
Packaging
The Packaging division produces glassware for the food and beverage industry. The division's 2006 sales revenue was 4.1 billion Euros and it employs 20,000 people worldwide. The Packaging division was renamed as Verallia.
Acquisitions and sales
Saint-Gobain has made a number of recent acquisitions. In December 2005, it purchased the British company BPB plc, the world's largest manufacturer of plasterboard, for $6.7 billion USD.[6] In August 2007, the company acquired Maxit, doubling the size of its Industrial Mortars business.[citation needed] In June 2011, Saint Gobain Glass India acquired Sezal Glass floatline business based in the state of Gujarat, India. The acquisition adds about 550 tons per day additional capacity, and the deal was inked at around 150 million USD.[7].[8]
The company has also sold off various assets. Recently the company sold its cosmetic glass manufacturing business, including a plant in Newton County, Georgia.[citation needed]
References
- ^ a b c d e f "Annual Results 2010". Saint-Gobain. http://www.saint-gobain.com/files/Comptes_conso_2010_EN.pdf. Retrieved 13 March 2011.
- ^ "Legal notice." Saint-Gobain. Retrieved on 7 July 2010.
- ^ a b "Saint-Gobain : les miroirs des verriers." Le Journal du Net. Retrieved on 7 July 2010.
- ^ Abbott Payson Usher, "Colbert and Governmental Control of Industry in Seventeenth Century France" The Review of Economics and Statistics 16.11 (November 1934:237-240).
- ^ "Fiche d'entreprise". OpesC. http://www.opesc.org/fiche-societe/fiche-societe.php?entreprise=SAI. Retrieved 2008-01-22.
- ^ "BPB accepts bid from French firm". BBC News. 17 November 2005. http://news.bbc.co.uk/1/hi/business/4444686.stm.
- ^ "Saint-Gobain seeks land to set up solar glass facility". The Hindu. 3 June 2011. http://www.thehindubusinessline.com/companies/article2074431.ece.
- ^ "Saint-Gobain Announces the Acquisition of Sezal Glass Ltd's Float Glass Business in India". Bloomberg. 31 May 2011. http://www.bloomberg.com/apps/news?pid=conewsstory&tkr=SGP:FP&sid=ah46INuz_BbU.
Sources
External links
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Categories:- Companies listed on the Euronext exchanges
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