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Value-added mix - glass (VAG)
What it is
Float glass processed further - toughened, laminated, insulated, coated or reflective - for architectural, automotive and appliance use. Processing adds function such as safety, solar control or acoustic insulation
It is the route out of commodity float pricing, where a plain sheet competes on price alone
Impact on industries
- Realisation and margin run well above raw float, and demand is specification-driven rather than tonnage-driven
- Building energy codes, safety regulations and automotive standards mandate processed glass, so demand is regulation-supported
- Processing capacity is fragmented with many small converters, so competitive intensity is higher than in float manufacture
- Float producers moving downstream compete with their own processing customers - the same supplier-competitor bind seen in flat steel