NSG will integrate its automotive glass business in China with a major Chinese automotive glass manufacturer.
NSG will transfer its automotive processing operations in Guilin and Tianjin to SYP Kangqiao Autoglass (SYP Automotive).
SYP Automotive is a manufacturer of advanced coated float and processed products for the Chinese architectural glass market.
NSG believes the integration will strengthen its ability to meet the growing needs of vehicle manufacturers in China.
The group has had a long-standing partnership with SYP for over 30 years and has a 13% equity stake in the manufacturer.
NSG will help SYP Automotive to enhance its ability to satisfy increasingly complex demands for glazing solutions, including meeting expectations from established global automakers looking to develop advanced glazing supply inside China.
The proposed deal terms are due to be presented to the shareholders of SYP in June and it is expected that, should shareholder approval be obtained, binding definitive agreements will then be signed.
Completion of the transaction is expected to take place later this year once Chinese regulatory approvals have been obtained.
