“We are honored to participate in such a well-established tradition as we celebrate the recent transfer of the listing of our shares to the NYSE,” said Tecnoglass CEO and co-founder José Manuel Daes. “I am incredibly proud of our team’s success and look forward to maintaining our leadership position in the architectural glass space as a NYSE-traded company.”

In addition to live television coverage of the ceremony, the New York Stock Exchange will stream the Opening Bell on its website at https://www.nyse.com/bell.

The manufacturer of architectural glass, windows, and associated aluminum products serving the global residential and commercial end markets also announced that while in New York, a delegation from Tecnoglass will also attend the Baird 2022 Global Consumer, Technology & Services Conference in Manhattan on Tuesday, June 7, 2022.

Tecnoglass Inc. is a leading producer of architectural glass, windows, and associated aluminum products serving the multi-family, single-family and commercial end markets. Tecnoglass is the second largest glass fabricator serving the US and the #1 architectural glass company in Latin America. Located in Barranquilla, Colombia, the company’s 3.5 million square foot, vertically-integrated manufacturing complex provides access to over 1,000 global customers, with the US accounting for more than 90% of revenues. Tecnoglass’ tailored products are found on properties, including One Thousand Museum (Miami), Paramount (Miami), Salesforce Tower (San Francisco), Via 57 West (NY), Hub50House (Boston), Aeropuerto Internacional El Dorado (Bogotá), One Plaza (Medellín), and the Pabellón de Cristal (Barranquilla).

Vidrio Andino has been selling glass in Colombia and the region since 1997 and began production at its manufacturing facility located near Bogotá, Colombia in 2013, becoming the main supplier of float glass to Tecnoglass since that time. The joint venture will significantly augment Tecnoglass’ vertical integration strategy by allowing it to acquire an ownership interest in one of the first stages of its production supply chain, guaranteeing stable long-term float glass supply and improving purchasing economics for a significant portion of its float glass sourcing over time.

Above photo: Tecnoglass facility in Barranquilla, Colombia (courtesy Tecnoglass)

Vidrio Andino now plans to build a modern glass manufacturing facility in Galapa (nearby Barranquilla), which is located approximately 12 miles from Tecnoglass’ existing production facilities. The new facility will have nominal production capacity of approximately 750 metric tons per day of float glass. Upon the expected completion of the new Galapa facility in 2021, Tecnoglass will benefit from the following factors:

• Access to ample float glass supply for anticipated growth, with Vidrio Andino more than doubling its float glass production nominal capacity
• Reduced purchasing costs through expanded scale in its float glass procurement, elimination of raw material waste, and lower inbound transportation costs given Galapa’s closer proximity to Barranquilla
• Control of nearly its entire production process, driving increased efficiency to provide enhanced service and improved lead times to customers

José Manuel Daes, Chief Executive Officer of Tecnoglass, commented, “We are excited to partner with Saint-Gobain and to develop one of the most advanced and efficient glass production facilities in the world near our own plant network. This investment reinforces our vertical integration strategy and positions Tecnoglass to capture benefits from nearly the entire value chain of our high-quality architectural glass production. The joint venture secures our float glass supply and will generate significant synergies for years to come.”

Xavier Pinot, General Manager of Vidrio Andino, commented, “Over the past several years, Vidrio Andino has built a powerful brand and a trusted reputation for excellence as a glass supplier of choice in Latin America. By combining Saint-Gobain, a world leader in the manufacturing of float glass, with Tecnoglass’ proven high quality manufacturing acumen, Vidrio Andino will be able to accelerate its penetration in the region.”

The Company’s investment for the minority interest in Vidrio Andino is approximately $45 million, which is expected to be funded with cash of $34 million plus land contributed at an aggregate value of $11 million. Tecnoglass intends to fund the cash portion of the transaction with cash on its balance sheet and readily available lines of credit, while maintaining a pro forma net leverage position in line with recent quarters. The transaction is expected to be completed in the second quarter of 2019.

The initial $45 million investment into the joint venture from Tecnoglass will be used to fund a portion of the construction cost for the new manufacturing facility near Barranquilla, which is expected to total approximately $160 million through 2022. The remainder of the construction cost is expected to be funded primarily through operating cash flow from the existing manufacturing facility in Bogota, debt borrowed at the joint venture level and pro-rata capital contributions from the shareholders over the multi-year construction period.

BARRANQUILLA, Colombia, Jan. 11, 2019 (GLOBE NEWSWIRE)