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Based On a Solid Profile, Fitch Ratings Affirms Its BB- Rating for Tecnoglass with a Stable Outlook

Based On a Solid Profile, Fitch Ratings Affirms Its BB- Rating for Tecnoglass with a Stable Outlook

Tecnoglass Barranquilla Colombia window glass

Fitch Ratings today affirmed its BB- ratings for the Barranquilla-based window-maker Tecnoglass (NASDAQ: TGLS), with a stable outlook, thanks to a solid profile, a competitive cost structure, and above-average growth. The BB- rating and stable outlook apply to both the company’s long-term foreign currency issuer default rating and long-term local currency issuer default rating (IDR).

According to the New York-based “big three” rating agency, Tecnoglass’ rating of BB- reflects its good market position in windows and glass-based facades, low cost base, and long-term expected growth rate. Against Latin American corporates rated at the BB-, Tecnoglass’ financial profile compares favorably, the agency added.

Fitch Ratings said in a statement that key assumptions within rating case for the company include sales growth continues in 2018 and 2019, supported by existing backlog and growth in U.S. commercial construction. The agency also noted its assumptions for Tecnoglass’ to maintain positive cash flow from operations in 2017 and 2018, gross leverage remaining at or below 3.5x over the intermediate term, and net leverage remaining below 3.0x over the intermediate term.

Photo: A Tecnoglass employee working within the company’s factory in Barranquilla, Colombia (Photo credit: Liliana Padierna)

Earlier this year, in March, the company, whose shares are listed on the NASDAQ and the Colombian Bolsa de Valores, bought Giovanni Monti and Partners Consulting and Glazing Contractors, Inc. (GM&P), a glazing and consulting contractor in Miami, for $35 million USD.

“The option to pay for the remaining $29 million USD of the acquisition amount of Giovanni Monti and Partners Consulting and Glazing Contractors Inc. in shares of Tecnoglass, either in whole or in part, provides Tecnoglass’ with the flexibility to choose some combination of funding so as to maintain its liquidity position,” stated Fitch.

This move was announced just three months after the company acquired Miami-based E.S. Windows, LLC for $13 million USD. The Florida company is the largest importer and reseller of the Barranquilla-based window and building materials maker’s products in the United States.

Despite these new acquisitions, Fitch said that liquidity is considered adequate. “The company held $46 million USD in cash as of the second-quarter 2017 and faced no significant debt maturities until 2022 when $210 million USD of notes mature,” stated Fitch. “Recently completed investments mitigate the need for large capital expenditure in the next two to three years.”

Santiago Giraldo, who was named chief financial officer of Tecnoglass in August, said he was pleased with the affirmation in what has been a challenging year but one that has been weathered well given the ongoing diversification strategy of a company that makes about 80% of its total sales to the United States.

“We expect to grow approximately 6% compared to 2016,” said Giraldo. “Additionally, it is important to see the credit that is given to our business model and cost structure, where we continue to obtain the highest margins in the industry and which gives us the flexibility to continue growing.”

Fitch added that positive rating actions could be driven by a strengthening of Tecnoglass’ business and financial positions. “Stable operating cash flow generation through industry and economic cycles resulting in leverage levels of total debt/EBITDA at or below 2.0x and net debt/EBITDA below 1.5x would be considered positive.”

Santiago Giraldo chief financial officer of Tecnoglass

““It is important to see the credit that is given to our business model and cost structure,” said Santiago Giraldo, CFO of Tecnoglass. (Photo credit: Liliana Padierna)”

Tecnoglass grew rapidly from 2012, as it has gained new business, particularly in the United States. Its growth slowed in 2017 as new construction in Colombia contracted and its U.S. order backlog was deferred during the first half of 2017. The company’s 2017 EBITDA is expected to close at around $60 million USD, which compares unfavorably to $63 million USD as of 2016.

Despite lower 2017 EBITDA, Fitch estimates Tecnoglass EBITDA will expand to about $70 million USD in 2018 as its backlog is fulfilled. Tecnoglass’ order backlog expanded to $487 million USD as of June 30 of this year from $398 million USD a year ago.

Though Tecnoglass in recent years has been selling more products within Colombia, as well as Panama, its main market continues to be the United States. “The U.S. is such a big country and a powerful buyer that we still have a lot of growth to do in the U.S.” Tecnoglass COO Christian Daes told Finance Colombia in September. “The market for windows in the U.S. is over $30 billion USD, and we are hardly making 200 and some million dollars in sales. So that means there is still a long way for us to go.”

Fuente: Finance Colombia

Distrito y Tecnoglass ponen la primera piedra para el nuevo CAI de Las Flores

Será construido por las empresas Monómeros, Merco y Tecnoglass. Una vez terminada la obra, será entregada en comodato a la Policía.

Tecnoglass desde el aire window glass

En 45 días el barrio Las Flores tendrá un nuevo Comando de Acción Inmediata (CAI). Así lo aseguraron los representantes de las fundaciones de las empresas Monómeros, Merco, y Tecnoglass, quienes pusieron ayer la primera piedra de la obra.

Cristian Daes, COO del Grupo Tecnoglass, manifestó que están haciendo lo que la hacía falta al barrio: la seguridad.

“Lo tuvieron hace tiempo, pero ya era hora de que regresáramos y ahora sí para quedarse. El barrio debe ser cada vez más seguro y haremos lo posible porque tenga más desarrollo”, señaló.

Daes explicó que el CAI contará con una garita, cocineta, vestidor, baño y depósito, y posteriormente será entregado a la Policía Metropolitana a través de un contrato de comodato.

La composición y blindaje de los elementos de la estructura, brindarán al proyecto un nivel de aislamiento térmico. Así mismo, se incorporarán luces LED de bajo consumo energético.

“Inicialmente íbamos a realizar este proyecto solos, pero las otras dos fundaciones nos manifestaron su interés y decidieron integrarse. Con el dinero que no vamos a colocar, decidimos que lo invertiremos en motocicletas y comunicación”, añadió.

El alcalde de Barranquilla, Alejandro Char, hizo presencia en el evento y manifestó que con el nuevo CAI buscan fortalecer la seguridad de este gran sector que sigue creciendo cada día.

“Solo tengo palabras de agradecimiento para las empresas privadas que siempre están dispuestas a apoyar el trabajo por el bienestar de la comunidad”, puntualizó el mandatario.

El proyecto, que tendrá una inversión de $173 millones donados por las distintas compañías, se desarrollará en un lote propiedad del distrito ubicado en la carrera 82 (vía 43) N° 108-08.

Fuente: El Heraldo

FITCH ratifica la calificación crediticia de Tecnoglass con perspectiva estable

La ratificación refleja la estructura competitiva de costos de la compañía y su perfil de crecimiento, el cual es superior al promedio de la industria.

Tecnoglass desde el aire window glass

De acuerdo al comunicado de Fitch Ratings, la ratificación de la calificación BB- refleja la estructura competitiva de costos de la Compañía y su perfil de crecimiento, el cual es superior al promedio de la industria. El crecimiento esperado está respaldado por un backlog de contratos firmados robusto y por una relación consolidada con clientes a largo plazo.
Lacalificación se ve limitada por el riesgo operativo de tener la mayoría de la producción en su mega planta en Barranquilla y por la naturaleza cíclica y alta demanda de capital de trabajo asociada a la industria de la construcción.
La perspectiva estable se basa en las expectativas por parte de la calificadora de que el EBITDA de la Compañía crecería por encima del 15% en el 2018 frente a su comparativo del 2017; a medida que la Compañía ejecute su backlog de contratos firmados.
Lo anterior, daría como resultado una relación deuda bruta / EBITDA total de 3.4x en 2018 (con una deuda neta /EBITDA esperada por la compañía de menos de 3.0x para el período).

Factores claves en la calificación

  • Industria competitiva y fragmentada. Fitch argumenta que los competidores de Tecnoglass tienen diversos grados de especialización y diversificación geográfica o de mercado final, incluyendo un número limitado de jugadores con marcas establecidas y recursos financieros. Tecnoglass está bien posicionada en Estados Unidos y Colombia, sus dos mercados principales.
  • Estructura de bajo costo. Fitch considera que la integración vertical de la Compañía, junto con sus costos competitivos de mano de obra y transporte, le dan una amplia ventaja y unos márgenes superiores a los de los de la industria.
  • Concentración de producción. Fitch Ratings cree que cualquier interrupción, en la mega planta en Barranquilla, podría afectar la capacidad de la Compañía para fabricar o distribuir sus productos, lo que podría ocasionar que incurra en costos más altos o tiempos de entrega más largos, menores ingresos y flujo de caja reducido.
  • Órdenes sólidas de Backlog. Fitch estima que el EBITDA de Tecnoglass se incrementará en aproximadamente un 15% en el 2018 frente a los resultados esperados para el 2017, a raíz de la cantidad de contratos ya cerrados y de las órdenes en curso.
  • Conclusión de su fase de crecimiento en inversión. La finalización del ciclo de Capex de crecimiento en el 2016, debe apoyar un crecimiento en las ventas y flujo de caja operativa durante el corto y mediano plazo. Según la Compañía, se han invertido más de $200 millones en los últimos 5 años en maquinaria, terrenos y equipos.
  • Apalancamiento con tendencia decreciente. Fitch espera que la Compañía deba continuar reduciendo sus métricas de apalancamiento financiero, en la medida que crece su EBITDA. Se espera que la Compañía pueda seguir apalancando adquisiciones modestas en el futuro.

Santiago Giraldo, Director Financiero- CFO de la Compañía, indicó “estamos complacidos con la ratificación de nuestra calificación, esto refleja la visión de mediano plazo de Fitch pese a un año retador en Colombia pero en el cual, gracias a tener una estrategia de diversificación de mercados en el cual Estados Unidos ya pesa más del 80% sobre el total de ventas, esperamos crecer aproximadamente un 6% frente al 2016. Adicionalmente, es importante ver el crédito que se le da a nuestro modelo de negocio y estructura de costos, donde continuamos obteniendo los márgenes más altos de la industria y lo cual nos da flexibilidad para seguir creciendo en nuevos mercados”.

Tecnoglass Inc. es la Compañía líder en la fabricación ventanas arquitectónicas, vidrios, y productos de aluminio para la industria mundial de la construcción residencial y comercial. Tecnoglass es la Compañía #1 en la transformación del vidrio arquitectónico de Latinoamérica y es el segundo fabricante atendiendo el mercado de Estados Unidos. Con sede en Barranquilla, Colombia, Tecnoglass opera un moderno complejo industrial de más de 250 mil metros cuadrados, integrado verticalmente, que proporciona fácil acceso a las Américas, el Caribe y el Pacífico. Tecnoglass vende sus productos a más de 900 clientes en el Norte, Centro y Sur de América, el Caribe y el Pacifico, exporta aproximadamente el 70% de su producción a Estados Unidos. Tecnoglass manufactura productos de primera categoría, los cuales se encuentran en algunas de las propiedades más distintivas del mundo, entre ellos, aeropuerto El Dorado (Bogotá), Centro Medico Imbanaco (Cali), Trump Plaza (Panamá), Trump Tower (Miami), y The Woodlands (Houston).

Fuente: Zonacero

Tecnoglass COO Christian Daes Is Striving for Greater Vertical Integration and Further Expansion into the United States

Barranquilla-based window-maker Tecnoglass (NASDAQ:TGLS, BVC: TGLSC) is an undeniable success story in Colombia. It is a manufacturer that exports the bulk of its products to the United States in a country not known for export-oriented manufacturing.

Christian Daes, the company’s chief operating office, told Finance Colombia that there really is no secret: Tecnoglass simply manufactures windows for the U.S. market and then delivers them with higher quality and at a lower price than the competition.

He recognizes that not enough Colombian companies have been able to replicate this model to take advantage of the free-trade agreement with the United States.

But the company wastes no time lamenting that fact. Instead it has continued making acquisitions and setting up operations in the United States since becoming a publicly traded company on NASDAQ in addition to its listing on the Colombian stock exchange, Bolsa de Valores de Colombia (BVC).

“I don’t show results quarter after quarter to make anybody happy. I plan for the long run.” – Christian Daes, COO of Tecnoglass (Photo credit: Liliana Padierna)

Daes recently sat down for an extended interview with Loren Moss, executive editor of Finance Colombia, to discuss the early history of the Tecnoglass, its recent acquisition of Giovanni Monti and Partners Consulting and Glazing Contractors (GM&P), ongoing efforts for greater vertical integration, further expansion into the United States, and why Barranquilla is set to rise again as a business hub.

Christian Daes: We began in 1984 making solar water heaters, but then soon after we started the company, natural gas came in pipes in Barranquilla, and obviously the natural gas people began to distribute the natural gas heaters for water at a very low price and financed from 12 to 24 months to incentivize people to use natural gas.

Christian Daes: We began in 1984 making solar water heaters, but then soon after we started the company, natural gas came in pipes in Barranquilla, and obviously the natural gas people began to distribute the natural gas heaters for water at a very low price and financed from 12 to 24 months to incentivize people to use natural gas.

Obviously we had our first crisis there. We were using glass and aluminum to make the solar water heaters, and so we decided that maybe making aluminum windows would be a good deal. We began making aluminum windows. We began to grow the company.

By 1990, we were doing a couple of million dollars in sales. By 1994, we were already doing $15 million USD, and we were already a national company selling in Bogotá, Medellín, Cali, Cartagena, La Guajira, and Santa Marta. So, we were buying a lot of glass. We decided to put our own template facility.

“Our sales were up to $50 million USD by 2006, and we decided that it was time to establish our own aluminum company to continue with our vertical integration.” – Christian Daes

At the beginning, the name was “Energia Solar,” so Tecnoglass started as a company to supply the glass to Energia Solar. When we finished the plant that was ready to start in 1995, Colombia was in the middle of a construction crisis. Crises have always changed our path — or our future — which is good because every time we have had a crisis, we have become a much better company.

Since we didn’t have anybody to sell the glass to — because Colombia was in a construction crisis — we went to the U.S. to try to open a market, and we found the perfect partner in the U.S. called RC Aluminum and Mr. Raul Casales. We started making glass for him. We did the first job, and then he saw the quality of our products and he began to expand — to buy more from us. Then we asked him why he didn’t send me the aluminum and I would cut the aluminum, assemble his windows and put my glass in and ship them to the U.S., which he agreed to and we started with the job in 1997.

We began to develop the business over the years. In 2000, the hurricane law they passed in Miami-Dade County obligated everybody to use hurricane-proof glass. We were ready to invest in the new laminating facility. We expanded five times in the next five years. Our sales were up to $50 million USD by 2006, and we decided that it was time to establish our own aluminum company to continue with our vertical integration.

When we had the aluminum factory ready in 2007, the U.S. was in the middle of a crisis, and we used to sell 90% of our production to the U.S. and 10% to Colombia. So we had to come up with new products for Colombia and for Panama, and we were able to grow from $50 million USD in sales to $120 million USD by the time the crisis was over in the U.S.

So that means that the crisis helped us to really grow and expand our sales into other markets where we were not selling before. Then, in 2013, we decided to go into the NASDAQ market, and the reason why we did so was because we felt that was the only way to really expand in the U.S.

We were playing local in Miami, but it wasn’t so easy to sell in New York or in Ohio or in Chicago or in Los Angeles because people said, “Who are you? How do I know you are going to deliver?”

So, when we entered the NASDAQ market, the stock market, we had that in mind — and it paid off because we were doing $120 million USD and today we are going to do approximately $350 million USD in sales, which means that it helped the purpose.

“We want Barranquilla to be known in the future as the capital of windows in the world. Whenever anybody thinks about a window or a piece of glass, they should have Barranquilla in mind.” – Christian Daes

Loren Moss: That’s interesting. I remember when you were in Medellín recently, I was at a talk that you gave and you talked about how difficult it was to break into the U.S. market.

There were people that you talked to that really didn’t want to trust you and had never thought about Colombia as an exporter of glass, and when you shipped them glass and they measured the quality, that they would probably check it even more stringently than if they had bought it domestically. How hard has it been to overcome at least any initial perceptions with people not thinking of Colombia as a traditional export manufacturing source?

Christian Daes: It’s very difficult. Getting a product from Colombia that is not a traditional product — like windows and glass — to a U.S. market was the most difficult thing that we have ever done.

There is an ASTM standard that you have to follow for quality in glass, and when we got to the U.S., the standard was not being used to check glass. But the standard says that you should the check 3 meters, or 9 feet, away from the glass, and if you don’t see the defect, the defect is not there, and our glass was being looked at from 3 inches with a magnifying glass to see if they could find anything.

So that taught us to be even better, to make an even better product and become a stronger company quality-wise, and that’s why we have the best quality in the industry. That’s why our slogan is “The Power of Quality.” That taught us a lesson to be the best.

Loren Moss: We’ve followed Tecnoglass for some time, and your glass is used in some very marquee properties: airports, high-rise hotels, universities — not just in the U.S. and here in Colombia, but even in Panama and other countries. How do you see the potential for growth? Obviously, the U.S. is a wide-open market for you, but then in other countries, whether those are nearshore countries here in the Americas or the Caribbean or even across the ocean. Is there a potential there or is there still so much of a market opportunity in the U.S. and Colombia to be exploited?

Christian Daes: Definitely the U.S. is such a big country and a powerful buyer that we still have a lot of growth to do in the U.S. The market for windows in the U.S. is over $30 billion USD, and we are hardly making 200 and some million dollars in sales. So that means there is still a long way for us to go.

But we are also looking to many other markets, even Colombia continues to be a very strong market for us. Panama, Bolivia, Ecuador, Argentina, Chile. And we want Barranquilla to be known in the future as the capital of windows in the world. Whenever anybody thinks about a window or a piece of glass, they should have Barranquilla in mind, and that’s what we’re trying to build here. Now that you are here, you can see the magnitude of the facility that we have in Colombia. This is 90 acres of land. This is 3 million square feet of factory.

Loren Moss: Usually when people outside of Colombia hear “Colombia” they think of Bogotá and they think of Medellín and they might think of Cartagena for tourism. Barranquilla is a large port city. Even though there’s a lot of domestic manufacturing here, it’s interesting that you guys have staked your claim here in Barranquilla. Besides being a major port city, what are the advantages of this particular city on Colombia’s Atlantic coast?

Christian Daes: The best thing about Barranquilla is not only that it’s positioned in a strategic place. Because obviously, being less than three days away by boat from Miami — or five days from Houston or 10 days from L.A. or seven days from New York — that’s a very powerful place to be when you want to export, especially to the U.S. market.

“The U.S. is such a big country and a powerful buyer that we still have a lot of growth to do in the U.S. The market for windows in the U.S. is over $30 billion USD.” – Christian Daes

But in the end, it’s the people in Barranquilla. People in Barranquilla are different. They are relaxed, happy, hardworking, and they learn anything quickly. It helps when getting into this type of business that you don’t learn at university.

For finance, you can go to university and learn how to work the finance side or accounting of administrative issues or the calculations of a civil engineer. But to make windows, there is not a university. This is something that you teach from one person that knows to the next one.

And Barranquilla has proven to be the perfect place to be because the environment where we work is a happy environment. One of the things that surprises most of the visitors when they come over from the U.S. is that people are so young, people are so happy at work, and people can deliver what they promise that they can do.

Loren Moss: I’ve only been here in the city a few times, but it seems to have a very good infrastructure, very good roads as far as capacity compared to even other cities in Colombia. Why is it that Barranquilla’s message has not gotten out? Why is it that Barranquilla doesn’t have maybe the fame that some of the other large cities in Colombia have?

Christian Daes: Well, because we were for many years behind in many things. But lately we have had four mayors in a row that have been very good to Barranquilla and that have really turned Barranquilla around.

If you talk to anybody in Colombia, they will tell you that Barranquilla, within the next 10 years, will be within the first two, the first three in Colombia. Why? It’s because we are getting back on track. Barranquilla’s nickname is “The Golden Doorway of Colombia.” Why was Barranquilla called the Golden Door of Colombia? Because everything came through Barranquilla.

When the Wright brothers began to fly in North Carolina in 1912, the first plane landed in Barranquilla. The first airmail was in Barranquilla. Soccer came in through Barranquilla, radio stations came in through Barranquilla. The traffic-light system? Through Barranquilla. The first Olympic stadium? In Barranquilla. The first public water-treatment plant was in Barranquilla. The development of Colombia came in through Barranquilla.

But then, we had a problem. We had a guy who was very industrious, Julio Mario Santo Domingo, and he had the beer company. He had 20 companies in Barranquilla. But then he decided to move to Bogotá. Not the companies, but he began moving his people to Bogotá, and then he sold the companies and he moved to New York. And people in Barranquilla got used to being employees and not being entrepreneurs. And then we lost like 20 or 30 years because of that.

Tecnoglass is an example of what Barranquilla is capable of doing. We would love for Barranquilla to be more industrious, to have more industry. And I’m saying “we” because I feel like I am the mayor of Barranquilla. I want the city to do better, and I always talk to the mayor and to the governor of the Atlantico department. I want them to approach companies and tell them that Barranquilla is the place to be.

Loren Moss: Are there other major companies that are headquartered here in the Barranquilla region that might be export-oriented?

Christian Daes: Well, the headquarters of the main four companies in Colombia had their headquarters originally in Barranquilla. And in Colombia, there is a law that where the company was born is where they have to do their annual meeting for stockholders.

So, for example, Avianca’s meeting is in Barranquilla because Avianca started in Barranquilla. Argos, which is a company that people recognize as being a Medellín company, was started in Barranquilla, and the meeting is in Barranquilla.

“Getting a product from Colombia that is not a traditional product — like windows and glass — to a U.S. market was the most difficult thing that we have ever done.” – Christian Daes

And you have many other companies like that are no longer in Barranquilla, but they have to come and have their meetings in Barranquilla because this was their starting point. I mean, it’s where the Magdalena River — which is as big as the Mississippi River — is.

We have the second largest river on the continent. And when it meets the ocean — the Caribbean — Barranquilla is right there. The first deepwater port in Colombia was Barranquilla.

When my grandfather came from Palestine, he landed in Barranquilla. They didn’t know where they were going to land. They took a boat to America, and the boat would stop in Chile or in Peru or in Colombia or anywhere. It landed in Barranquilla, and many other things took place in Barranquilla. The problem is we had such success that for some time everybody studied to be an employee of Julio Mario Santo Domingo.

I wish one day we could even be similar to Julio Mario. I’m not criticizing Julio Mario. On the contrary, I’m saying that we were no longer on the entrepreneurial side because people held him as “the god” and all the companies were his. Everybody was going to school to work for him. So when he left Colombia, we were missing our father here.

Loren Moss: The boss left.

Christian Daes: There was nobody making any companies or doing any developments or anything in Barranquilla, and the public side was not helping. Finally, we got the story together, we are right back on track. We have had this mayor now, Alejandro Char — twice, once in 2008 and now for the second term. And he has been so good for the city that we are right back on track. I mean, we will be back.

Loren Moss: So Tecnoglass has come a long way since manufacturing solar water heaters. You have made some acquisitions in the United States. Can you tell us about your purchases? I believe you have a presence in Miami now.

Christian Daes: We purchased GM&P [Giovanni Monti and Partners Consulting and Glazing Contractors] because we want to install and distribute our products directly — go all the way from one side to the next, doing everything ourselves.

The warehouse that we purchased from Glasswall three or four years ago was to have a place that we could have our main customers. And GM&P, to have them in one place so they could be able to unload containers if they had to, or fabricate, like GMP was fabricating in Miami. And we bought these two companies to integrate them and to make sure that we have a more efficient operation and that we can go from zero to 100 with customers.

“Crises have always changed our path — or our future — which is good because every time we have had a crisis, we have become a much better company.” – Christian Daes

Loren Moss: Speaking of that vertical integration — of being able to offer everything from manufacturing to installation — where are you there? I know that, beyond glass, you also have an aluminum fabrication factory manufacturing aluminum. I would imagine that is for the frames for the glass, but could you describe that better? And then you have plans for even greater vertical integration? What about going to manufacturing from even the silica itself up to the glass?

Christian Daes: That’s our dream. One day we will be melting the sand and making glass. We will get there. It’s not easy. When we began, we were a garage company in a small country. We have come a long way.

There is still a lot more to do, and we are on the right track to do it. But we like to be taking steps that sound very aggressive, but they are very conservative. When we started, for example, our aluminum plant, for two years we were not making any profit, but it paid off afterwards.

When we make acquisitions at Tecnoglass, we never plan for the short term but for the long run. We are always thinking of five, 10 years from today. You have to remember that we are the only glass company of this size that is managed by the owners. So what makes us different than being a CEO that hires for a company is that my term here is a life term.

I don’t show results quarter after quarter to make anybody happy. I plan for the long run. And maybe the results today are not as good, but I’m planning the future. I am building the future. So this is basically the way that we are planning in Tecnoglass: that one day we will close the loop and do our own glass.

Loren Moss: One of the things that seems to be important here is the corporate culture, the well-being of the employees. I know that you have a foundation and that you provide a lot of things, and I would imagine it would be more difficult to do that if you were, say, private equity owners who are looking at a two- or three-year time frame to cash out versus looking at the long range and the strategy of the company for the next 20 or 50 years — or in the next generation.

Christian Daes: First of all, to us there is nothing more important in life than our employees. We want to make sure that the wealth of the company is distributed among the employees, that they do well, that they grow with the company, that their lives become better and that they can give their families a better way of life.

At Tecnoglass, for example, we pay for university for 190 sons or wives or employees. Right now, it is at any university that they want to go to and where they can get accepted.

And we also have these programs to fix employees’ houses. We give them an amount of money to fix their houses, because most of the people here make $350 USD a month or $400 USD a month, and the never have the opportunity to have a better-looking place. And we go into the house and we rebuild it inside. Some people are so poor that they don’t even have a floor.

“In 2000, the hurricane law they passed in Miami-Dade County obligated everybody to use hurricane-proof glass. We were ready to invest in the new laminating facility. We expanded five times in the next five years.” – Christian Daes

So, we make sure that we put the tiles, that we put the bath enclosure, that we do the kitchen, because that’s what we want to do for our employees.

And we have many other programs. We help them with their health, medicine, transportation, school. Anything that we can do for our employees, we will.

Loren Moss: Impressive. Tecnoglass as an exporter — and an exporter to the United States — surely has experience with the free-trade agreement that Colombia and the United States have had now for some time. Colombia as a whole has not exported as much to the United States as many people hoped it would when the free-trade agreement came into effect. What do you think the reasons for that are? What are the things that hold Colombia back from fully taking advantage of accessing the U.S. market?

Christian Daes: This is bad to say, but it’s the truth: The free-trade agreement benefits the U.S. Because now they can sell more in Colombia than before — and they are selling more to Colombia than before. And Colombia has not taken advantage basically because what we want to export is bocadillos [Colombian sweets], cheese, coffee, oil, coal — things that we were already doing.

I don’t understand how our business people in Colombia don’t see that, if China exports to the U.S. — and they have a have deficit with China for $369 billion USD — and China has similar wages in China that we have in Colombia, why can’t we set up companies in Colombia to build what China exports to the U.S.?

We are closer, we speak basically the same language, we’re in the same time zone and everything is so much easier from Colombia that it makes no sense that we are not taking better advantage of the free-trade agreement.

Why is Tecnoglass so successful in exporting to the U.S.? Before the free-trade agreement, we were doing $50 million USD in sales to the U.S., and we are now over $200 million USD in sales to the U.S. But why is that? Because we were able to design products for the U.S. market. We are not exporting the windows that the Colombian market buys. We are exporting the windows that the U.S. market wants to buy, and we have created, designed and built the windows that they want to buy. Our prices are better, our quality is better, and that’s why we have been so successful over there.

Loren Moss: If a U.S. foreign direct investor is looking to set up operations in the “nearshore” — in the Americas, in the Caribbean — to service the U.S., whether that be manufacturing, whether that be logistics, whether that be a service exportation, why should they consider Colombia and why should they consider Barranquilla specifically?

Christian Daes: Because of our location, because we are so close, because English is not difficult to find in Barranquilla, because of the way Colombian people behave at work, because, definitely, we live two hours away from Miami. Miami is closer to Barranquilla than it is to New York. Miami is closer to Barranquilla than to Chicago.

So then it makes a lot of sense, in a country like Colombia, where you find cheap labor, quality labor, good manners, a democratic country — we are the oldest democracy in the Americas — it makes a lot of sense to establish yourself in Barranquilla.

Exclusive Interview: Santiago Giraldo Named CFO of Tecnoglass, Inc. (NASDAQ:TGLS)

Last week, Santiago Giraldo was named chief financial officer of Tecnoglass. He had previously served in a deputy financial role within the company and has seen major changes at the Barranquilla-based window and glass maker over the past few years.

The firm has gone from a small, family-run provider of home-building supplies to one that is now publicly listed in Colombia, on the Bolsa de Valores, and on the NASDAQ in the United States, where it generates about 70% of its sales.

Tecnoglass’ path has been one that more and more Colombian companies hope to emulate. With an improving security situation and a domestic private equity world that is beginning to mature, the investment community both in the country and abroad is offering opportunities for firms to grow like never before.

As he settles into his new role, Giraldo sat down with Loren Moss, executive editor of Finance Colombia, to discuss the journey that Tecnoglass has taken over the past half decade and how the company balances a family-built culture focused on long-term growth with its responsibility to continually boost quarterly earnings for investor.

Loren Moss: Tecnoglass has been listed on NASDAQ since 2013 and the BVC — Bolsa de Valores de Colombia — since the beginning of last year. What precipitated Tecnoglass deciding to list?

Santiago Giraldo: Basically, it was an opportunity to make the company known in the markets in which we participate. Our main market is the U.S., with about 70% of our sales. So it was a way to further penetrate some markets within the U.S. where Tecnoglass was not known. Originally, Florida was the vast majority of our sales, but by being public we were able to penetrate other markets within the U.S.

Having incremental bonding capacity also helped us participate in larger projects. So it was an initiative not only necessarily to raise cash, but a strategic initiative to penetrate the U.S. market.

On the Colombian listing, because we didn’t do an IPO, we just did a reverse ADR. It was basically an opportunity to meet local investors with an opportunity to participate in the company as well. Given that we are a Colombian company, we also wanted to open the opportunity to local qualified investors and retail investors to participate in the company.

Loren Moss: That’s interesting, because you have some Colombian companies that are listed in the U.S. with ADRs, but you guys have done the reverse. That’s really innovative. So, tell me, now that you are in the routine of quarterly reporting, how has that discipline changed? This company is still run by its founders, and they have a long-term vision. How does that impact the culture of the company internally?

Santiago Giraldo: Quite a bit. I think this has been a very nice success story of a family-based company that has grown into a large corporate that is listed on exchanges and has had publicly issued debt into the U.S. and European markets. So it’s kind of a mix in the sense that the family members are still very much involved.

Our CEO and COO are running the company, but you have to have a mix in the sense that being public obviously implies having a lot of regulations, filing necessities, and other activities that normal family-based companies don’t have. I think that the vision continues to be long term. We’re very much running the company with the vision of being a $500 million USD company within the next five years or so.

But on a quarterly basis you’ve also got to have your financial planning in order. You’ve got to have all the SEC requirements that non-public companies don’t have. You’re going to have to have some of your staff being proficient in U.S. norms while having the skills that a private family-owned company would have to have as well. So it’s a mix.

In the end, the strategy continues to be long term, but you measure the long-term progress on a quarterly basis, and that’s a change. You have to have very good vision on the short-term — what the results are going to be not only for the next year or two years but for the next quarter. And you also must keep in mind that you’re running the company for the long term and doing what is best for the company for its sustainability over the long haul, as opposed to just running it quarter-by-quarter.

Loren Moss: Now, Tecnoglass is in the league with other large and well-known Colombian companies that are listed. We have Ecopetrol, the state-controlled petroleum company, Avianca, Bancolombia, and others. How did the market receive you when you first listed? When you first went to NASDAQ, what was the reception? Were the analysts, or was the investor community, somewhat familiar with you already? Was there a learning curve to orient them? What have the challenges been in the capital markets and in the institutional debt markets?

Santiago Giraldo: Yes, so this is kind of a different story in the sense that it wasn’t public through a straight-up IPO, but it was done through what is called a “SPAC,” which is a Special Purpose Acquisition Company vehicle. Basically, there was already a vehicle that was publicly listed that basically took over the private company — that took over Tecnoglass. And in that transaction, Tecnoglass became public.

But the process of getting to know the company and raising funds is pretty similar in the sense that you conduct a pretty extensive “roadshow” to market the company and educate investors as to what the company is. You have to communicate what its markets are, why it’s a different story, why it’s different than the competition, and where the advantages are.

And that’s an ongoing process, really. I mean, the first amount that was raised was obviously done in 2013 through a very extensive process. But the truth of the matter is that, ever since last year, we’ve been going to investors — doing roadshows, talking to a lot of people, seeing new investors coming on board, and hopefully having your stock price reflect a proper valuation.

It’s really an educational process that’s ongoing. It’s not necessarily one that took place four years ago and then it stopped.

And we are scheduled to participate in two or three different conferences in the third quarter this year and then a couple of others in the fourth quarter. As part of the investor relations initiative, you have to be continuously out there and getting people to know the story and trying to penetrate different investors that you haven’t talked to.

Loren Moss: I imagine, with the success that Tecnoglass has had, it has kind of paved the way and it will probably be easier in the future for other Colombian manufacturing companies when they decide to go that route.

Santiago Giraldo: Yeah, I think you have to be ready. To be public is not a process that is easy to absorb and it’s not something that you’re going to learn overnight, so it’s certainly something that you want to make sure that the company has enough skill, it has enough resources, and it’s ready to make the change.

I think we don’t probably know enough in Colombia about accessing the capital markets. To tell you the truth, I think a lot of the companies — other than the typical top 10, top 15 companies — are just basically relying on bank financing. There are really not a whole lot of companies that issue bonds or that go out and issue equity. But those are very suitable options to grow a company, and I just don’t think we have that culture, and unfortunately our capital markets in Colombia are not as deep as you would like.

I think it’s a learning process and we’re going that way with the MILA (Mercado Integrado Latinoamericano) integration, being associated with Mexico, Peru, and Chile as having one stock exchange. But I think we have a ways to go. I think we need to educate corporates more and make them more aware of what it could mean for their companies, and have people see these as a viable option.

Loren Moss: It seems that the capital markets are very immature in Colombia. Private equity didn’t really exist here — the laws weren’t really set up to facilitate a private equity industry — until 13 or 14 years ago. We’ve talked with Isabella Muñoz, the director of ColCapital, the professional association for private equity in Colombia, and it seems that traditionally the economy, which had been agrarian, has been set up for family-owned dynasties.

Tecnoglass head Mr. José Daes has mentioned the Santo Domingo family, for example, and that’s how things have worked here and in a lot of other Latin American countries for a long time. Bringing in investment capital and market-based capital is a relatively new phenomenon, I think, in many places. Brazil and Mexico are a little bit more advanced — perhaps Chile — and Colombia seems to be now on board. But it seems to be still a relatively new thing here, and companies are not necessarily used to dealing with or navigating public capital markets.

Santiago Giraldo: Yeah, that’s absolutely right. They’re not used to it, and I think the new era of PE funds is definitely up and going. You see a lot more PE funds being interested in Colombian-based companies.

Obviously, with the investor confidence and what’s transpired in the country over the last decade or so — as far as people having confidence that the country is secure — you have everything that is required to be successful here from a political standpoint. And also from a security standpoint and from basically everything that an investor will look for.

So I think we’re up and going. There are a lot of PE funds. There’s a lot of activity. There has been M&A from PE funds coming from offshore wanting to invest in Colombia. And I think that’s definitely another viable option. I think PE funds look to have the same interest as the companies do. They want to grow the company, they want to make it more profitable, they want to establish the best practices in order for them to eventually go out of that company when it’s much more robust, when it’s a much larger company.

We’re already seeing it. I don’t know the numbers exactly, but the amount of PE funds that were present in Colombia and active 10 years ago versus what it is today has to be tremendously different.

Loren Moss: Oh, it’s much different. I mean, the industry didn’t exist 15 years ago in Colombia. The way it was explained to me, actually I think Chilean investors came in, lobbied, took some leadership, and got some of the laws changed, so that now there’s quite a driving private equity and private capital community. I was at their industry event a few months back in Bogotá and it had interest from the world over. There were investors from Israel, South Africa, the U.S. — very large players from the U.S. were there — and from the rest of Latin America. It was very interesting to see.

It seems that Colombia has left behind that old family dynasty kind of thing, where “you’re going to be the president of the company because you’re my nephew” versus “let’s go out and get professional management and have some professional capital.” That, I think, has been one of the things that has held the Colombian economy back in the past. Now the country seems to be making good time in catching up and modernizing those markets and those structures.

Santiago Giraldo: Yeah, I think the frontiers have been opened. I think the mentality of businesspeople has changed. Like you said, I think companies are more professional, more structured. They’re sophisticated. You’re looking at a lot of companies becoming “multilatinas” as opposed to being just local-based economy companies.

So, I think it’s an evolution — and a positive one. I think there are a lot of companies growing beyond the Andean region, which is very positive. There are relationships being established with Europe, with Asia. The government, actually, is very active every year in going out and promoting Colombia so investors can take a look at what the country has to offer. I think that this year’s round was concluded about a month ago, and the president, the Ministry of Finance, and all of his team kind of lead the way. And they bring along top-class executives and CEOs from the main Colombian companies.

There’s much more of a showcase for people to know the country, to know the economy, to know each company — and I think that’s paving the way.

Fuente: Finance Colombia

Tecnoglass Names Santiago Giraldo as New CFO

Barranquilla-based window and glassmaker Tecnoglass, Inc. has named Santiago Giraldo as its chief financial officer, the company announced today.

He will replace Joaquin Fernandez, who is remaining with Tecnoglass in the position of director of administration and finance for the firm’s operating subsidiaries. “His decision to step down as chief financial officer is not related to any issues regarding financial disclosures, accounting matters, or business issues,” said the company in a statement.

Effective immediately, Giraldo, who had previously served as deputy chief financial officer, will now be tasked with overseeing Tecnoglass’ corporate finance, accounting, tax management, SEC reporting, and business development initiatives, said the company.

Before joining Tecnoglass, Giraldo served as CFO at Ocensa, a subsidiary of Ecopetrol S.A. He also has experience working as vice president at Citibank Colombia and in the corporate bank units of both JPMorgan Chase and Wells Fargo in the United States.

“Since joining Tecnoglass, Santiago has been instrumental in building a stronger financial department through his intricate understanding of our business and extensive financial experience,” said José Manuel Daes, chief executive officer of Tecnoglass. “He has designed and implemented stronger internal controls, reporting protocols, and accounting practices.”

Fuente: Finance Colombia

The 196 largest

For the second consecutive year, +Negocios (+ n) has followed the pulse of the 196 largest companies in the Caribbean region that were part of the ranking of the Superintendencia de Sociedades. Last May that Authority published a list of the 2,000 companies that moved the most capital in their operating revenues, including group from the Atlantic Coast that moved more than $ 55 billion over the past year and joined the list this year.

There is much to learn from this outlook: falling revenues of all 196 companies (-0.01%), marked mainly by the mining sector; reorganization in the sector, as the industry showed a strong recovery in profits: its share in the total profits increased from 9,81% in 2013 to 34.15% in 2014; and the challenge of the Caribbean region to be more competitive with other regions of the country.

Notable results are the top 10 companies in the region: Avianca, Olimpica, Reficar, Electricaribe, Prodeco, Cementos Argos, Gecelca, Opese, CBI Colombiana and Mexichem Resinas Colombia.

These are some of the issues analyzed in the July edition of the magazine to present an assessment of the business dynamics in the Coast. But the new edition of +n will also discuss BoConcept’s franchise model to give you some clues so you don’t ‘fail’ when doing a job interview, and the recommendations of Jorge Reynolds, creator of the pacemaker to be a leader.

See the list: Las 196 más grandes

Tecnoglass will implement liquidity programs for its shares

Bogota
Yesterday, Tecnoglass Holdings held its first meeting with the media after being listed in the Colombian Stock Exchange (BVC) on january 6. Christian Daes, company COO, told LR, that the listing process was performed twice because people here in Colombia wanted to buy our shares, but had to open an account in the United States to be able to. He also stated that this year will be good for the company, both in Colombia and outside the country and with the foray into the stock market they want to have a volume of 100,000 shares.
Tecnoglass, headquartered in Barranquilla, entered Nasdaq in 2013 to raise capital. According to the company, the last two years increased the company’s value by around 35% in dollars, which means that in Colombian pesos it has reached a valuation of 130%.

What are your expectations with your listing in the Colombian Stock Exchange ?
Expectations are very positive. We hope to consolidate our investors in Colombia and the United States. The first year we moved 4,000 shares in Nasdaq; in the second year, 8,000 shares and this year we expect to double the volume to around 31,000 shares. The goal is to reach a volume of 100 thousand shares.

Why go to the local market at a time when the markets are so low?
In the United States the competition has lost share value, but not us. We hope the same thing happens in Colombia because we want to be known across the whole country and that we have many quality products.

What is your plan to improve liquidity of the shares?
Within our priorities we plan visit major cities in Colombia and for our customers in the country to become shareholders. In addition, we are working on forming a liquidity program to increase the volume of share, and we are working with with Credicorp Capital and Casa de Bolsato this end. The final plan will be reported at a later date.

What investment plans do you have for the company?
This year we will continue working on expanding the company’s infrastructure and new business lines. We hope to continue to grow this year in sales and we hope to sell nearly (COP) $ 1.1 billion.

How will you finance these processes?
We were recently granted a credit of around US $ 120 million, which will be used to refinance a debt of about US $ 83 million to be paid in seven years, an additional US $ 30 million will be used to finance expansion in our plant facilities. With this capital we will work in 2016.

How has the devaluation of the colombian peso in the last year affected you?
The strengthening of the dollar has impacted us favorably. We suffered for many years due to reevaluation and the industry was not profitable. We can now have more export earnings. It helps that the exchange rate will not be based on the export of oil or coal, it is the time for the country’s exporters.

Have sales in Colombia have been affected by the devaluation?
Clearly they have been affected because the raw material for our products is imported. Additionally, going from peso to dollar sales would seem to affect sales. However, in Colombia, our customers give us advances on the work, allowing us to work without having to stop production.

How do you see the slowdown?
We can’t be pessimistic because it is a process that is affecting all countries and we are hopeful because we are having more sales in pesos. Also, this year in construction we’ve had a lot of serious interest in our products.

Projections of increased sales by 20% in 2016
According to the company with the investments this year like the US $40 million, 20,000 square meter soft coat glass plant, Tecnoglass Inc. plans to increase its sales by 20% in 2016. This plant will employ more than 700 people and generate an estimated increase in sales of US $ 200 million over the next five years. By the close of 2015, the company expects sales of more than US $ 240 million and EBITDA of US $ 65 million.

The opinions:
Diego Franco
Trader
“Having Tecnoglass on the BVC is positive because it sends a message to other companies that it is an adequate market to find resources”

José Manuel Daes
CEO of Tecnoglass
“We have decided to make this double listing with the BVC because we want to diversify our shareholder base and expand our exposure”

Source: La República

Tecnoglass, the new ‘jewel’ of the national industry

Preliminary sales for 2015 are 820,000 million pesos. For this year, the growth forecast is 20% and estimated to continue increasing its value with its foray into the local stock market.

The parent company Tecnoglass Inc., specialized in manufacturing of high quality window frames for the residential and commercial construction industry, expects to maintain a growth rate in sales close to 40% in 2016.

The solid financial figures last year and its debut in the Colombian Stock Exchange (BVC) in early January are important achievements for the company that will be available to all Colombians who wish to invest in it.

This business group, consisting of several subsidiaries like Tecnoglass SA, focused on the transformation of glass and aluminum, and Energía Solar, focused on the assembly of architectural systems, will continue to pursue the glass and window frames market to convert Barranquilla into a world-class axis of industrial development.
Currently, the business conglomerate, which has about 5,000 workers operating in a 260,000 square meter plant located in the capital of the Atlántico department maintains business relationships with nearly 800 customers spread over 27 countries, among which are customers the United States, Colombia, Panama and Bolivia.

In a market that moves about 30,000 million dollars in the United States, Tecnoglass occupies an important position and at the close of 2015 would record sales of more than US $ 240 million.

To continue to achieve success, the Colombian company expects to continue taking advantage of its vertical integration model among its subsidiaries: Tecnoglass is responsible for transforming the glass and then sells it to Energía Solar.

Furthermore, the use of cutting edge technology has enabled the manufacture of new products like glass that retains no energy.

The figures do not lie and show that in the first nine months of 2015, adjusted net income increased 20,6% compared to the same period of 2014 which was 13.8%. By the close of 2015, the EBITDA would be close to $ 65 million.

In terms of investment, the company invested this year in a new 20,000 square meter, $40 million dollar ‘soft coat’ glass plant. This could boost sales by up to 20% (US $ 200 million over the next five years) and employ over 700 people.

INCURSION INTO THE COLOMBIAN STOCK EXCHANGE

The operations of this Colombian industry ‘jewel’ has made investors believe in the company and, according to Jose Manuel Daes, President and CEO of Tecnoglass Inc., the recovery in the last two years reached levels of 35%,in dollars, and 130%, in Colombian pesos.

From the January 6, the Colombian Stock Exchange (BVC) approved the double listing of the common shares of the glass producer under the ticker TGLSC.

Note that the titles of Tecnoglass Inc., listed on the Nasdaq stock market, are unique in being listed in the second most liquid exchange in the global equity market.
“We decided to make this double listing with the Colombian Stock Exchange because we want to diversify our shareholder base and expand our exposure and access to the investment community of our country. We are a Colombian company for the world “, said Daes.

With the entry of the new emission, local and foreign investors may acquire shares in both the BVC and Nasdaq through stockbrokers.

The initial price for the share will be the closing price on Nasdaq the preceding day and converted by the Representative Market Rate (TRM) that day.

Being listed on Nasdaq has allowed Tecnoglass Inc. to “be more competitive, constantly innovate and bring best practices with a rigorous corporate governance “, which aims to give investors confidence about the future of the company according to the president of the company.

“We will work hard to be the first choice for local investors, “concluded Daes.

Source: Portafolio.co

“Entering the Colombian stock exchange was harder than getting into the one in New York”: Tecnoglass

During a press conference on Tuesday in Bogota, Tecnoglass managers reported that due to the stronger dollar, which is improving the profits of their business in the US, its financial results are putting the company in one of his best levels in history. Partial results of the first 9 months of 2015 show an increase in gross profit of 53%.

Other characteristics that highlight Tecnoglass is that it is the only Colombian company listed in Nasdaq, the largest automated electronic stock exchange in the United States based in New York. In addition, after two and a half years in the US market, the company decided to enter the Colombian Stock Exchange (BVC), whose stocks began trading on January 6.

The strange thing is that Tecnoglass dabbled in the stock market contrary to other large companies in the country, usually listed on the BVC first and then entering the New York Stock Exchange. So, the strategy used by the company is an alternative for Colombian companies who are thinking about entering the capital market.

El Espectador spoke with Christian Daes, Tecnoglass’ main partner, who narrates experience of this strategy. Among the advantages available to the employer is the increased credibility with American institutions.

Why did you venture first to the capital markets in the United States instead of Colombia?

The strategy was motivated by the company’s need for greater credibility in the American market. In the US if you sell something you’ll need a compliance insurance policy, and it was very difficult to get this requirement without being an American company. Because of this, we decided to enter the Nasdaq, where we are required to publicly present our balance sheet, which are audited by firms like PricewaterhouseCoopers. After our foray into this market the change in our credibility improved markedly, we even increased the amount of insurance that we can use.

Why enter Nasdaq, not the New York Stock Exchange (NYSE)?

Nasdaq has an advantage as it is intended for technology and fast growing companies. In contrast, the NYSE is for more traditional businesses like oil companies. Nasdaq was the best market that we could apply to our company, and so far it has been a good decision. US stocks has appreciated by 36% in the last year.

Would you recommend that Colombian companies enter US stock exchanges rather than the one in Colombia?

There is no formula for success. In each case you should think about the best strategy for each company. In our case it was a necessity to first enter the United States, which turned out to be the best. And today we are reaping the benefits.

Should other Colombian exporters should follow Tecnoglass’ example?

Industries in Colombia should take advantage of the US market. There is an impressive appetite for local companies, so it is unfair that while in Chile there are 21 companies listed in Nasdaq in Colombia there is only one. This is a tool to internationalize the country.

How painful was the process of entering Nasdaq?

The process is painful because it is a lot of paperwork, meetings, travel, etc. But the changes are good because the company has been internationalized, allowing Tecnoglass exports continue to grow in the coming years. This is making us proud of our homeland.

Now that you are also listed on the Colombian Stock Exchange and have experienced of both processes, where was it more difficult, Nasdaq or the BVC?

As hard as it is to believe, the process of entering into the BVC was more time-consuming than the process we did to get into Nasdaq. However we understand that they are different regulations, which are steps that must be taken and respected. They are also experiences that allowed us to acquire discipline.

What are the advantages of Nasdaq?

Being in this market will allow us to leverage the next decrease in the US construction sector. When the decline arrives our level of Ebitda will allow us to increase participation, as it happened in 2008. The crisis allowed us to expand throughout the US market.

Recently they acquired a loan with Credicorp to the order of US $ 120 million, what was the motivation?

A our investors were worried that all our debt was short term. So we was decided to change all these loans to one long-term, seven year, credit, to enhance sustainability. Besides our debt is now in dollars because most of our revenues are in this currency, so that this strategy reduces the currency risk.

How did you manage to use the crisis of 2008, and what did you learn that will enable you to take advantage of possible declines in the United States and Colombia?

We know that the boom will end someday, the good thing is that we have learned that we must be very sober while expanding during declines. Our experience taught us that our debt should be backed in batches, and we have to diversify. The result was that when the construction sector went into recession in 2008 we had sales of US $ 60 million, and when the crisis ended we recorded US $ 180 for this same item. And what we’re thinking right now is to repeat that strategy when the next crisis comes along.

Source: El Espectador

Tecnoglass to spend around US $ 30 million in investment projects

Bogotá_
Tuesday Tecnoglass, a company headquartered in Barranquilla and dedicated to the manufacture of glass, said they got a syndicated loan for around US $ 120 million, of which about US $ 80 million will be used to refinance debt to seven years and the remaining US $ 30 million for investment projects in its facilities during 2016.

Rodolfo Espinosa, president of Energía Solar, ESWindows a subsidiary of Tecnoglass Holding, said that this loan was 70% approved by banks abroad.

Regarding the process of emission in the Colombian Stock Exchange (BVC), Espinosa said that they were looking to start a program to form liquidity for the company and are talking with Casa de Bolsa and Credicorp Capital.

In addition They explained that with the entrance to the Colombia Stock Exchange people in Colombia are seeking to buy shares in the company without having to enroll in the United States market.

“In 2013 we took the big step of entering and raising capital in NASDAQ and it has been a great success for our investors and to the business group. In the last two years we have recovered by 35% in dollar terms and 130% in Colombian pesos at the exchange rate, “stressed José Manuel Daes, CEO of Tecnoglass Inc.

Colombia Stock Exchange approves double listing of Tecnoglass shares

The only Colombian company listed on Nasdaq announced more than 24 million shareholders as of this year may make dual investments.

This means that the shares listed on the American Stock Exchange are now in the Colombia Stock Exchange. Local and foreign investors can acquire shares of Tecnoglass in both BVC and Nasdaq. The purchase price will be based on the closing price in Nasdaq converted at the Representative Market Rate for that day.

According to Jose Manuel Daes, Tecnoglass CEO, this opens up possibilities for negotiating an opening in the market for all Colombians who want to invest and assures that the company will continue betting on the glass and window frame market.

The company also announced that it received approval for a  US $ 109.5 million loan, which will be used to refinance an existing US $ 83.5 million debt and also US $ 26 million destined to capital expenditures and operational budget.

It should be noted that the Tecnoglass shares in Nasdaq are trading at about US $ 13.70, after starting price, two years ago, of US $ 10.18.

Finally, the company assures that it expects 2015 closing sales of $ 240 million and aims to increase its sales in 2016 by 20%.

Source: La W

Tecnoglass expects sales of US $ 240 million at the end of 2015

With the investments made in recent months the company plans to increase its sales by 20% in 2016.

BOGOTA. Barranquilla company Tecnoglass expects to close 2015 with sales of more than US $ 240 million and an EBITDA of $ 65 million, as announced this morning at a press conference in Bogotá by its president Rodolfo Espinosa.

He also noted that with the investments made in recent months, like the new 40 million dollar, 20,000 square meter soft coat glass plant, the company plans to increase its sales by 20 percent in 2016.

” This plant will employ more than 700 people and generate an estimated increase in sales of 200 million over the next five years, “he said.

He reiterated also that the Colimbian Stock Exchange, BVC, has approved the double listing of the ordinary shares from  the company starting on January 6, 2016, under the ticker TGLSC. And the shares will remain listed on the Nasdaq Stock Market in the United States.

For his part, the CEO, José Manuel Daes, said in a statement that “in 2013 we took the big step of entering Nasdaq to raise capital and It has been a total success for our investors and our business group. In the last two years we have increased value by 35% in dollars and 130% in Colombian pesos considering the exchange rate. We decided to make this double listing with the Colombian Stock Exchange because we want to diversify our shareholder base and expand our exposure and access to the investment community of our country. We are a company made by Colombians for the world.

“With this new stock emission, local and foreign investors can acquire shares of Tecnoglass Inc. in both the BVC and Nasdaq, through stock brokers.

In December 2013, the company debuted in the Nasdaq stock exchange at a share price of US $ 10.18 and placed about 15% of its shares among investors in the American public. Two years later, the price is trading around US $ 13.70.

Tecnoglass is a manufacturing company dedicated to architectural glass windows for global industries in residential and commercial construction. Headquartered in Barranquilla, it has an industrial complex of more than 220 thousand square meters, vertically integrated, providing access to the Americas, the Caribbean and the Pacific. It sells its products to over 800 customers in more than 27 countries in North, Central and South America and exports approximately 60% of its production.

Tecnoglass, the company from Barranquilla that grows alongside the dollar

The company from Barranquilla has been trading in the BVC since January 6, 2016, presents its financial statement for 2015 with 39% Ebitda up to September and sales of $ 828,020 million at year end .

In a press conference on Tuesday, the Colombian company which premiered at the Colombian stock exchange last week released its 2015 balance which highlights an Ebitda of 36% in 2015 compared to 21% for the same period last year.

The President of one of the companies that compose Tecnoglass: Solar ESWindows SA, Rodolfo Espinosa, reported that sales of Colombian operations reached $ 828,020 million at the close of 2015.

Tecnoglass entered the BVC with the ticker symbol TGLSC and at a starting price of $ 43,220.07 at opening. The last closing price recorded on January 12 was $ 45,000. The company will also be listed on the Nasdaq Stock Exchange in the US, where it has been trading since 2013, being the first and only Colombian company to enter that market.

José Manuel Daes, Tecnoglass Inc. CEO, reported in a press release that the company has grown by 35% in dollars and 130% in Colombian pesos during the past two years, considering the effect of the exchange rate. By the close of 2015, they are expecting record sales of more than US $ 240 million, with an EBITDA of US $ 240.

With investments made in 2015 for more than US $ 40 million, like the new 20,000 square meter soft coat glass plant, Tecnoglass plans to increase its sales by US $ 200 million over the next five years and estimates that will generate over 700 jobs.

Tecnoglass’ success addresses the current dollar pricing by exporting about 60% of its production, which is based on high quality architectural glass and windows for  residential and commercial construction. Headquartered in Barranquilla, it operates a modern industrial complex of more than 220,000 square meters, becoming the first company that manages windows with full vertical integration.

Source: Dinero

Tecnoglass debuted on the BVC and recorded highest gains

During their first day on the Colombian Stock Exchange (BVC), shares from the Barranquilla business Tecnoglass (TGLSC) increased by 5.28%, becoming the most widely valued in the day.

The reference price that was opened at $ 43,220.07 and closed at $ 45,500. The trading volume of $ 57,967,000 was recorded with 1,274 units traded.

In contrast Ecopetrol shares hit a record low, by closing at $ 1,060, with a variation of -2.30%. The decline began last December 23 when it was priced at $ 1,205.

The 14 of December was its previous lowest price since the shares were emitted at  $ 1,090.

The share with the highest trading volume was Nutresa, at $ 16,973.69 million.

Yesterday the BVC capitalization index (Colcap) closed 1129.32 units with a decline of 1.14% compared to Tuesday’s session.

Fuente: El Heraldo

A guide to understanding Tecnoglass share debuting on the BVC

In the past year the share value for the company from Barranquilla has increased more than 38% in Nasdaq, where it has been negotiating for months, and this week shares will begin trading in Colombia. Dinero has a guide for share and an investment profile.

As of today investors can buy Tecnoglass shares in the Colombia Stock Exchange, a company from Barranquilla dedicated to the manufacture of glass and windows. The initial opening price is COP $ 43,220.07.

The company has been listed in the Nasdaq technology stock exchange since early 2014 and last year increased its value over 38%, this implies that it fared better than the broader market. During the same period the Nasdaq Composite index gained 4.8% while the Industrial S&P rose 2.67%. If it had been listed in Colombia, the share would also have had a higher than COLCAP performance.

From now on the share will be negotiated simultaneously in both markets as is the case with other shares like: Aval, Bogota, the Canacol and Avianca, among others. It will also respond simultaneously to the SEC and Colombian authorities.

The company earned US $ 7.6 million in the third quarter of 2015 representing a decrease of 32.4% from the previous year and includes accounting losses for $ 3.1 million. However, operational results were positive and the adjusted EBITDA increased by 115%. In 2016 the company might have an adjusted EBITDA of US $ 85 million, 30.7% higher than expected for 2015.

Tecnoglass reports its financial results in dollars so rising currency is bad for sales in Colombia. For example, while sales to the domestic market grew by 20% annually in pesos it fell in dollars. However, the company exports 60% of its production to other markets including the United States, where it grew by 43% annually.

Last June, the members of the Daes family were majority stockholders they are also at the forefront of operations and management positions. They are followed by the Red Oak Partners with 7.5% of the shares while other smaller investors own 9.6%.

At press time Dinero was unable to obtain reports of risk rating agencies about the company and found that in the analyst community which is only covered by Dougherty & Co the recommendation is ‘buy’.

Source: Dinero

Tecnoglass, from January 6 listed in the BVC

The Registration Committee of the Colombian Stock Exchange announced on Tuesday that the company had been accepted.
From January 6, shares of the Tecnoglass may be traded in the Colombian Stock Exchange.

This company is listed on Nasdaq in the United States since March 2012, and made its request to enter the local stock market in mid-October of this year. At the time, the president of the business group, Christian Daes, told Portafolio that the opportunity had to be given to domestic investors to purchase their stock without opening accounts in other countries and that the aim is to bring them more liquidity to these titles.

45 months ago, after ringing the bell in New York, the company made ​​an initial public offering of ordinary shares which earned 42 million dollars. But most importantly, according to Daes, the reliability that was achieved in a nation where the majority of its sales are made.

This mechanism has already been used by companies such as Pacific and Canacol, with operations in Colombia and whose securities are traded on the BVC, but its main market is the Toronto Stock Exchange.

INITIAL BASE PRICE
“We are pleased to inform you that the Registration Committee of the BVC held on December 18, 2015 authorized the registration of the dual listing of the common shares of Tecnoglass Inc. in this market, ” as said in a letter from the legal representative of the BVC, Javier Diaz Fajardo, to Tecnoglass Chief Financial Officer Joaquin Fernandez, announcing the news of the acceptance in the BVC.

“We appreciate the trust put into the Colombian stock market and we are confident that our registration will be of great benefit to you and other market participants, “said Diaz.
The base price for the first day in the country will be the closing price on Nasdaq the day before converted by ​​the Representative Rate Market of the same date.

In that exchange, this year’s Tecnoglass stock peaked on December, when it reached US $ 15.06.

However, the value has fluctuated and yesterday it was quoted at $ 13.50, which It means it has depreciated by 10.36%. However, it has been a year of exponential growth and plans to finish with a turnover of 800,000 million pesos.

Shares will be available in the local market, but investors who buy directly abroad can also have the option to ask their brokers transfer to the titles so that they can be traded on the Colombian market.

Source: Portafolio.co

Tecnoglass entered the BVC

The Colombia Stock Exchange (BVC) said it authorized the registration of Tecnoglass Inc. common shares, the Colombian company specializing in processing and marketing of glass. Registration will take place on January  6, 2016.

Tecnoglass, headquartered in Barranquilla, arrived at the New York’s Nasdaq stock market in 2014, where large technology companies like Facebook and Google are traded.

The company has presence in eight American countries, including the United States, where they have developed projects such as the Fordham University facade in New York.

Additionally Tecnoglass released the first nine months of 2015 recorded sales of COP $ 308 000 million, which represents an increase of 70.9% compared with the same period the previous year.

Even though, to enter Nasdaq, Tecnoglass, had to undergo rigorous scrutiny of its accounts, the BVC emphasized that the inscription of double listing “does not imply certification of the value or the solvency of the issuer.”

Source: El Espectador

Tecnoglass and C.I. Energía SolarSolar Eswindows, companies of the year

The successful business group from Barranquilla received the highest international award from FIABCI.

Barranquilla recovers its leadership strength thanks to its industrial business group comprised by  Tecnoglass and C.I. Energía Solar Eswindows, which were awarded by the International Real Estate Federation (FIABCI) and the Business of the Year at the international level.

Alejandro Lega, academic member of FIABCI, Rodolfo Espinosa, President of CI Solar Energy and Andrés Correa, President of FIABCI Colombia.

The deserved distinction adds to the wonderful growth by the Business Group, which has been positioned as one of the largest manufacturers of window frames worldwide, which has been described as “The Window of the World”. In addition, the Group’s new Soft Coat glass factory was added this year with a 43 million dollar investment and a two thousand square meter plant and 700 new employment opportunities  for the city, region and country.

The recognition was awarded on Thursday November 19 with the participation of 300 guests from the real estate and construction sectors in the Bogotá Gun Club during the seventeenth version of the FIABCI Awards for Real Estate Excellence.

A total of 12 Awards were given in this new version of awards by the FIABCI Chapter in Colombia, who analyzed the design, construction, financing and operation of the various projects around the country to recognize the professional quality of engineers, architects and entrepreneurs in the sector.

During this new version of the awards was when  C.I. Energía Solar Eswindows and Tecnoglass  received the Award for International Companies of the Year, highlighted by their increasing export activities, a positive representation of Colombian industry abroad and the further consolidation of its business in the United States and Latin American markets. The award was received by Rodolfo Espinosa Meola, President of C.I. Solar Energy ESWindows from the President of the colombian FIABCI Chapter, Andrés Correa.

José Manuel Daes, director of the successful barranquillero Business Group.

Together with Tecnoglass and CI Solar Energy ESWindows were highlighted companies such as Terranum, Camilo Santamaria Architects, Constructora El Castillo, Amarilo, Argos Group, Concocreto, Prabyc Engineers, Ospinas, among others, also were awarded Medals Hernando Luque Ospina to Life and Work entrepreneur Arturo Street and the Medal of Real Estate Merit 2015 Engineer Alberto Santiago Botero.

Christian Daes, one of the directors of Tecnoglass Group.

This year the jury as evaluation criteria took into account the innovation and application of new trends in the field of sustainability, reducing environmental impact and work on corporate social responsibility.

The new recognition made Tecnoglass Group companies coincides with the latest sales balance presented by Christian Daes and Jose Manuel Daes company executives. During the first 9 months of the year CI Solar Energy Tecnoglass ESWindows and they reported sales of US $ 291,361 and US $ 308,465 respectively, equivalent to an increase of 50.4% and 70.9% compared with the same period last year. This growth corresponds to the startup of a new plant for glass soft coat technology and capacity expansion in technology, the business group.

Source: La Chachara

Tecnoglass y C.I. Energia Solar ESWindows, International Companies of the Year

The Companies  received recognition in the seventeenth version of the FIABCI Prix.

Tecnoglass and C.I. Energía Solar ESWindows and were recognized as International Companies of the Year, highlighting their increased export activity, positivele representing Colombian industry abroad and by further consolidating its business in markets in the United States and Latin America.

The award was presented during the seventeenth version of the FIABCI Awards for Real Estate Excellence, an event that was held in the Bogotá Gun Club with the over 300 guests from the real estate and construction sector.

A total of 12 awards were given in this new version of awards by the International Real Estate Federation -FIABCI- Colombia Chapter, who analyzed the design, construction, financing and operation of various projects in the country to recognize the professional quality of engineers, architects and entrepreneurs in the sector.

The award was received by Rodolfo Espinosa, President of C.I. Energía Solar ESWindows from the President of the colombian FIABCI Chapter, Andrés Correa. Alongside Tecnoglass and C.I. Energía Solar Energy ESWindows, other companies were highlighted such as Terranum, Camilo Santamaria Architects, Constructora El Castillo, Amarilo, Grupo Argos, Concocreto, Prabyc Ingenieros, Ospinas, among others, also,  the Hernando Luque Ospina lifetime acheivement Medal was awarded to businessman Arturo Calle and the Medal of Realty Merit 2015 to Engineer Alberto Santiago Botero.

This year, as evaluation criteria, the jury took into account the innovation and application of new trends in the field of sustainability, reduction of environmental impact and work in corporate social responsibility.

This new recognition to Tecnoglass Group companies coincides with the latest sales balance presented by Christian Daes and Jose Manuel Daes Chief Executives of the company.

During the first 9 months of the year and C.I. Energía Solar ESWindows and  Tecnoglass reported sales of US $ 291,361 and US $ 308,465 respectively, equivalent to an increase of 50.4% and 70.9% compared with the same period last year. This growth corresponds to the startup of a new plant for glass using soft coat technology and capacity expansion in technology by the business group.

Source: Zona Cero

Tecnoglass posts (COP) $ 308 billion in sales

Energía Solar reported sales of (COP) $ 291 billion. Overseas sales by the companies increased in 2015.

In the first nine months of the year Tecnoglass SA had sales of (COP) $ 308 billion, representing an increase of 70.9% compared with the same period last year ((COP) $ 180 billion).

Net sales in the third quarter of this year totaled (COP) $ 125.688 million, as reported by the company in a statement.

The 42% of total sales recorded between January and September this year were represented by international negotiations, while in 2014 that share was only 29%.

The operating profit of the company was (COP) $ 51 billion with an increase of 165.9% compared to last year as foreign sales increased.

This increase in sales is due to the new facilities producing Soft Coat (Low-E) glass that began operations in September 2015 with 700 new employees. Also, other projects that the company has put forward to increase production capacity in recent months.

On the other hand, Tecnoglass subsidiary Energía Solar S.A. reported sales between January and September this year of (COP) $ 291 billion, with an increase of 50.4% from the same period last year ($ 193 billion). 62% of total company sales in this period Are due to sales ​​abroad.

Net sales of the company in the third quarter of this year totaled (COP) $ 119 billion.

Source: El Heraldo, Business Wire

Energía Solar SA recorded sales for (COP) $ 291 billion

The company said that the significant increase is due to the penetration achieved in Florida, New Jersey, New York, California, Washington and Texas.

In the first nine months of the year,  Energía Solar SA recorded sales of (COP) $ 291 billion, this represents a50.4% increase compared to the same period last year ((COP)$ 193 billion).

The net sales for the company in the third quarter 2015 totaled $ 119.088 million, as reported in a statement.

62% of total company sales recorded between January and September 2015 were due to business abroad. During this period, sales to the United States increased by 59% compared to 2014.

“This significant increase is the result of greater incursion the company has achieved in this market where, along with Florida, the company now serves states like New Jersey, New York, California, Washington and Texas, among others”, as quoted from a company statement.

By the close of September, the company, who is a leader in high quality products for the construction industry such as windows, doors, facades and floating divisions, had record purchase orders for USD $ 360.4 million.

“Due to the nature of long-term projects in which the company is involved,, there is a high level of visibility on future sales that are registering in purchase orders, “he adds.

Company records show an increase in exports of finished products for the third and fourth quarters of 2015, as well as shipments scheduled for the first and second quarter of 2016.

Source: El Heraldo16

Tecnoglass: like tempered glass

Tecnoglass is one of the leaders in the region in the business of window frames and is the only Colombian company whose shares are traded in the Nasdaq stock exchange. The company prepares to issue shares in Colombia.

Tecnoglass is one of the most emblematic companies from Barranquilla. For the last 30 years, since it was created and the plant was assembled, they began an expansion process, first at home and then globally.

Although they have gone through difficult situations like the construction decline in Colombia in the late 90s and the international crisis that began in 2008, these impasses have strengthened Technoglass. For example, the first crisis motivated output to international markets and developed a greater added value in their products adjusting to demands and requirements of international markets -like hurricane resistant glass-, especially for southern Florida, USA, and the second crisis diversified and expanded its product portfolio.

Today Tecnoglass exports to more than 30 destinations and serves great projects, not only in South America but also in other areas like New York, Hawaii, Philadelphia, San Francisco and Las Vegas. By 2014, according to figures from “5,000 Empresas de Dinero” Tecnoglass posted revenues of $ 250,000 million, a more than 25% increase compared to the previous years growth.

“We aim to have sales of more than US $ 500 million over the next five years. We have the best glass and aluminum technology in the hemisphere. In August we will inaugurate the new plant, with an investment of US $ 45 million, in a process that applies microscopic layer onto the glass surface by atomic layering that lets in light but not heat or cold and gives the glass insulating properties. It is a norm in the United States requires that all projects have thermal coating”, adds Daes.

A little over a year ago, Tecnoglass executed one of the most important moves in the stock market: It is the only colombian company that has been listed in Nasdaq, the second most liquid stock exchange in the world, where shares of the most innovative companies in sectors such as technology, renewable energy and even restaurants and fashion are traded.

For Daes, this decision “was a bad business for the family but a great deal for the company”. For years it entered the market in southern Florida and became one of the most important players in that area. However, that knowledge was not enough to reach other areas in the United States and other major projects. “The entry into Nasdaq gave us the credibility we needed in the market, we passed all the exams, we are regulated and the auditors make their reports on the company”, adds Daes.

Today 84% ownership of the company is held by Colombian partners and the rest are out int market. The value of the stock is at US$ 12 and when he came out it was at US $ 10. “We believe there is no reason to be less than US $ 20 when our competitors are trading at 10, 12, 14 times Ebitda, while we are at 4.5 times Ebitda. We are thinking of emmiting stocks in Colombia -announced Daes- where we believe we can have more movement, and we can make it available to local players, like pension funds. We have started the process to enter the Colombian Stock Exchange”.

While the subject of the Exchange is defined and advances are made in new products, Tecnoglass look forward to the European market and the Middle East.
They are studying two scenarios for that case: one, the logistics operation from Barranquilla to serve those destinations; and two, analyzing some companies in Europe to purchase. Quite a long-term bet.

Source: Tecnoglass, como un vidrio templado

Tecnoglass takes another step in glass production

Its new plant, a $ 50 million investment begins operations this week.

Tecnoglass expects its new soft coat glass factory, which starts production this week, will help open markets to which access has failed, providing growth in their sales.

In 2015 the company from Barranquilla could reach sales in excess of 800 billion pesos, and the goal is to sell 1,100 billion pesos in 2016.

The plant represents an investment of $ 50 million and is located in the industrial citadel that Tecnoglass has built in Barranquilla. It occupies an area of 2,000 square meters and is kept as sterile as an operating room.

At the center of the whole process is a german machine known as the  Bonarden, in honor of its. From the outside it resembles a huge metal box, 220 meters long, filled with buttons and 64 portholes where you can see the high-tech chemical processes that take place inside.

Within the machine there exist a series of conditions like vacuum chambers and reduced gravity created by the gas emission, so that metals such as silver, zinc and titanium may adhere to the glass.

“The technology is similar to what used to separate electrons from uranium in the production of atomic fuel, but what we do is separate electrons from silver to help adhere them to the glass”,explains Tecnoglass vice president, Carlos Amin Daes.

As the process begins, the glass is quite normal, but at the end it becomes a material with which windows that are capable of maintaining the temperature while letting through visible light, are made. In other words, in hot climates they block the heat from the sun, saving on air conditioning expenses, and in colder climates the windows trap the heat, thus lowering heat expenses.

These procedures are computer controlled in their entirety.

The temperature in the compartment where the machine is housed is as cold as a refrigerator, A strong contrast to the heat normally felt in Barranquilla.

Amin recalls that by the 60s and 70s in the United States and other developed countries the heat in buildings was controlled putting reflective layers on glass, which is why you see all the huge buildings in New York and Chicago that look like giant mirrors. The disadvantage to this solution is that most of the light was reflected along with the heat and a lot of artificial lighting is required, along with higher energy bill. Instead the ‘soft coat’ is transparent and allows moderate light reflection to varying degrees, from 10º to 60º and gives bluish, greenish or a tanned color to the surface of the glass.

Six physicists worked on the development of Tecnoglass’ plant, which shows the high level of thought going into the project. In fact, according to Amin, in America there are only two similar factories in EE. UU. and Brazil. “As they say, we are taking a step further, because neither Mexico nor Chile or Argentina have anything similar,” he adds.

Guaranteed Market

Today, Tecnoglass today requires a million square meters of low-emission glass, about a third of its sales, that are purchased from a U.S. supplier. The plant that was opened has an 8 million square meter capacity, which gives the business group a possibility for  large growth.

According to Tecnoglass president, Christian Daes, new markets in Europe, Asia, USA and Canada, where the use of soft coat glass in buildings is mandatory are now within reach, as well as Mexico, which is already beginning to introduce similar legislation. There is also hope that this initiative will spread to Latin America and Colombia.

“For example, in the past I could not sell glass in Texas or Canada, but now I have an advantage because my soft coat competitors there do not  insulate or produce laminates, like we can. With the new factory, I assure you that we will conquer the market and we will show growth in that sector and many others”, notes Christian Daes.

THE COMPANY WILL ALSO PRODUCE CURVED GLASS

The president of the Tecnoglass conglomerate, which is made ​​up of diferent firms:  Tecnoglass (dedicated to glass), ESwindows (windows) and Alutions (aluminum profiles), Christian Daes said that contacts have already been made in Europe to sell their ‘soft coat’ products and has even got an order for three million Canadian dollars, that would not have been possible without the plant they opened in Barranquilla.

In Asia, Daes expects to sell glass sheets for others to process.

“We have not yet gone to offer, although we have connections, because we don’t like to sell what we don’t have”, notes the businessman, who claims that their product exceeds quality standards of products that come from the United States.

Additionally, the firm will produce curved glass, that they now make by hand and of lower quality, a type quite sought after by architects and is only provided by two or three factories in the world

From: Portafolio

Tecnoglass showed the highest growth in profits with a variation of 368.7%

Bogotá. So far, the greatest growth in earnings was Tecnoglass, showing an increase of 368.7% to record a figure in June of $ 8.281 million, followed Isagen with a rise of 41% and success that rose 19.6%. However, the largest amount recordedwas Ecopetrol with $ 1.6 trillion; followed by Bancolombia, with $ 694,982,000 and EPM with $ 326,010 million.

Cecilia López Montaño, former director of National Planning, said that “although there are still doubts as to whether or not sell ISAGEN, the energy sector is still profitable. I am in favor of keeping ISAGEN, and to some extent increase the debt quota, but to make decisions a thorough analysis is necessary.

“Moreover, in the second quarter of 2015, ISA showed an increase in net profit of 14.4% compared to the same period of the previous year. These results, according to the company, are explained by higher revenues on electricity transportation, road concessions and telecommunications, lower interest expenses in Chile and the effect of converting the financial information.

Luis Francisco Cuestas, a professor at Politécnico Grancolombiano University, said that when the resulting indexes of consumer confidence are analyzed, it shows that Colombians still think that the country is not in serious trouble.

“There is eagerness to buy products, but the economy could change with such a high dollar to peso exchange rate. For some people it is a moment to stop purchasing things. Then the heavy borrowing for home appliances implies that power generation remains a profitable business, “said Cuestas.

Another company that posted positive numbers was Bancolombia. In the second quarter it had an increase in net profit of 11.8% to $ 694.982 million compared with the same period last year. In addition, net interest income increased 18.6% from what was posted last year.

The results of Pacific Exploration and Production Corporation a Canadian oil company, involved a net loss of US $ 226.37 million, which according to the company “are reflected in the significant impact of the reduction in the price of crude oil. Other non-cash items affecting earnings include the depletion, depreciation and amortization of expenses, risk management and unrealized losses on currency exchange “.

The next meetings

Next September 4th Ecopetrol will hold a special assembly to officially appoint the new chairman of the board which will be headed by Luis Fernando Ramirez.

The Superfinanciera reported that Banco de Occidente, also convened its shareholders to an ordinary meeting on September 17.

Source: La República

The Tecnoglass – ESWindows Foundation

The Tecnoglass – ESWindows Foundation was born on July 18th, 2005 due to Tecnoglass and Energia Solar S.A.’s shareholders’ interest in collaborating with the management of social development projects and programs. Their main objective is to improve the quality of life for employees and their families, as well as the most vulnerable members of their communities.

Tecnoglass Gains U.S. Base through Acquisition of Glasswall Assets

The United States currently accounts for more than half of Colombia-based glass company Tecnoglass’ revenue, so it only made sense for it to establish a manufacturing base in the country—something it had lacked until now.
Tecnoglass, headquartered in Barranquilla, Colombia, acquired the assets of Miami-based impact door and window manufacturer Glasswall, including a 160,000 square-foot manufacturing and office facility in Miami, manufacturing and assembly equipment and Miami-Dade Notice of Acceptance (NOA) for products manufactured and sold by Glasswall.
“The acquisition is very important strategically for various reasons,” Tecnoglass CEO Jose M. Daes told USGNN.com™. “It gives us local manufacturing capabilities, [and] speeds up the processes of maintenance and replacement pieces, which translates into better service and client satisfaction.”
“We are committed to the U.S. market, which is today 60 percent of our sales, therefore we are making the moves to grow but in orderly fashion.” Daes adds that the company will now have a distribution center for residential windows, a sector in which he says it was lacking.
According to the company, total consideration for the transaction consisted of $4 million in Tecnoglass stock and a 15-year, $5-million term loan that Tecnoglass secured to acquire the facilities.
Glasswall was founded in 2002 by real estate developer Ugo Colombo, who previously founded CMC Group in 1986. CMC Group is a real estate development company focused on commercial, residential and retail properties and has developed more than 10 million square feet of commercial and luxury residential real estate, according to a release.
Tecnoglass currently plans to supply impact resistant doors and windows for four CMC Group projects over the next three years. Daes says Tecnoglass has Colombo’s “firm commitment” on the projects and anticipates entering an initial agreement with CMC Group by mid-2015.
Tecnoglass will continue to manufacturer at its 2.3-million square-foot facility in Colombia, though its newfound ability to “perform select manufacturing and light assembly in the U.S.,” Daes says, “will enhance client service and create certain cost efficiencies.”

Read on:
Yahoo Finances
January 13, 2015 4:05 PM

Tecnoglass grew 56% in the first semester

The report for the second quarter was $ 103 billion, which consolidates sales of 182,776 million.

Tecnoglass a company headquartered in Barranquilla and listed on the New York Stock Exchange, reported sales of more than 103,000 million in the second quarter, which consolidates a turnover of 182.776 million for the entire first half of 2015. This figure represents an increase of 56.6% over the first six months of 2014.

International sales of this firm, dedicated to the transformation of architectural glass and aluminum profiling for high quality construction in the residential and industrial sectors, and exports to the United States, Central and South America, had a share of 41%, which means a big growth as in the first half of last year sales represented only 29% of the total.

Tecnoglass management highlighted positive factors such as the commissioning of a new extrusion line with capacity of 450 tons per month, profile painting and a cutting edge glass laminating plant. This led to a 700 employee increase in their workforce.

Besides, they show great optimism for things to come in 2016 as from November and December on they will start to new lines that will significantly increase their production capacity.

Source: Portafolio

Tecnoglass sales totaled (COP) $ 182 billion in the first semester

The company announced the commissioning of a new ‘soft coat’ glass plant.

The sales recorded by Tecnoglass SA during the first half of this year totaled (COP) $ 182,776,000,000, representing an increase of 56.6% compared to the same period last year, when they reached (COP) $ 116,698,000,000.

In the first six months of the year, international sales for the company, headquartered in Barranquilla, that has a presence in the markets of different countries in North, Central and South America, amounted to 41% of total sales and totaled $ 74.938 million, an increase of 122.3% compared to sales of $ 33,713 million reported in the first half of 2014, representing a 29% of total sales.

The utilities from the company dedicated to the production of architectural glass and aluminum profiling for the construction of residential and commercial buildings, in the first semester recorded an increase by 98.8% by surpassing from $ 23,623,000 in 2014 to $ 46.969 million this year.

Christian Daes, CEO, said: “It is a very important moment for Tecnoglass. We remain on track to report record results for 2015 and 2016, and we are taking steps to raise our profile in the industry, increase productivity and expand our operations”.

He noted that during the second quarter into operations began on a new extrusion line with a 450 tons per month capacity, a profile painting line and the latest in glass laminating technology.

The projection for the end of the year is to begin operating two more production lines, with which significantly increase the capacity of lamited insulating glass.

New ‘Soft Coat’ Glass Plant (low emissivity)

Daes announced that a new plant for the production of  ‘Soft Coat’ glass (Low-E) will soon enter production at its plant in Barranquilla with an investment of USD$43 million. This cutting edge German technology will allow the company to reduce the cost of waste generated by the limitations of the standard sizes in the market for this type of glass.

The Soft Coat Low-E glass has properties that only allow the passage of light, retaining the exterior and interior glass temperatures, resulting in an increased level of efficiency in air conditioning systems in buildings.

The company estimates that the new plant will generate an estimated saving by waste between USD $6 million and $ 8 million per year and it allows the possibility of new sales of over USD $200 million annually.

At launch, the plant will run at 15% of its capacity of more than 7 million square meters per year, to meet the current demand for window frames with Soft Coat and the remaining 85% of capacity, will be addressed in the next two to three years.

Source: El Heraldo

Tecnoglass President participates in BANCOLDEX 2015 Forum

Tecnoglass was present at the forum “Growing up with ambition, focus, resilience” organized by BANCOLDEX, which took place at the  Julio Mario Santo Domingo Theater in Bogota.

Christian Daes, company president, was invited to participate in the panel: “Companies and regions that dare to compete to grow”

The BANCOLDEX Forum is a meeting which aims to introduce the successful experiences of Colombian entrepreneurs who have dared to grow with innovative and different approaches.

 

Tecnoglass wants to turn Barranquilla into the “world window capital”

With 60% of its sales concentrated in the US and Panama, Tecnoglass remains committed to the US market

Tecnoglass, the only Colombian company listed on the Nasdaq Stock Exchange in New York, aims to make Barranquilla into the “world window capital”, as said today the company president, Christian Daes.

Specialized in the production of glass, facade design and the manufacture of windows, Tecnoglass sales in 2014 reached 505 billion pesos (US $ 208 million) and, in 2016, expects a turnover of one trillion pesos (about 411 million dollars).

Tecnoglass manufactures architectural glass, windows and aluminum products for industrial, residential and commercial building projects. During 2013 Tecnoglass recorded consolidated revenues, including those of its affiliates, for $ 183 million and $ 133 million in 2012.

“Our motto and our aim is to make Barranquilla into the world window capital and we are headed in that direction” as said by DAES to Colombia.inn operated by the Efe agency, who spoke today at a meeting in Bogota in a presentation of the new strategy by the Bancóldex Group.

According to the entrepreneur, the firm, founded in 1994, has generated 4,500 jobs, while it has led the region to develop a line of suppliers of products and services to process 140 tons of glass daily.

“There is a whole infrastructure around us: we move 7,500 containers per year and therefore carriers have benefited and have grown by our side”, said Daes, noting that they also work with companies that manufacture the crates for transport and customs services, among others.

With 60% of its sales concentrated in the US and Panama, Tecnoglass remains committed to the US market and continues manufacturing in the country, with the incorporation of technologies that allow them to rely “less on imports”.

“Entrepreneurs often want to sell what they have and don’t want to create an industry around what customers need, that has been our strength in Tecnoglass” where “we have fitted a whole infrastructure around what the (North) American market  needs in windows”, Daes said.

The company, whose entry into Nasdaq leveraged US $40 million for its expansion plans, counts among its works the El Dorado Airport in Bogotá, the Trump Plaza (Panama) and the Trump Tower (Miami) as well as other buildings in countries like Bolivia, Costa Rica, Dominican Republic and Singapore.

Source: Economy Section, El Heraldo