2 Strategy The financial approach: allocating the Group’s resources efficiently www.saint-gobain.com SAINT-GOBAIN UNIVERSAL REGISTRATION DOCUMENT 2021 66 The financial approach: allocating 4. the Group’s resources efficiently In terms of allocating financial resources, Saint-Gobain’s approach aims both to target investments in order to stimulate growth and to maintain a portfolio that is both agile and value-creating. Implementing an investment policy targeting growth 4.1 Seizing growth opportunities 4.1.1 in key markets So as to serve the market in countries with the strongest growth in the construction and renovation sectors, the Group announced a series of massive investments in its industrial plasterboard production facilities: €40 million for the construction of a new line at its Quinto plant in Spain; €45 million for a second line in its Turda plant in the north of Romania; €25 million to increase the production capacity of its Fredrikstad site in Norway and make it the first carbon neutral plasterboard plant in the world. Saint-Gobain also launched the construction of a new plant in China in Jiangsu province, and also the commissioning of a third production line in Brazil, and an investment of more than $400 million over the next four years to increase roofing, insulation and plaster production capacities at four key production sites in the United States. In Europe, the Group invests for its development: in Poland, in Gorlice, the Construction Industry Business Unit has initiated new industrial production of silica glass. This new production for the Adfors brand will be used for various applications such as high-temperature insulation or batteries for electric vehicles. In France, the second stage of the program to expand the Life Sciences plant in Charny (Yonne) involved doubling its capacity for the production of silicone tubes, and it now manufactures braided tubes to meet the demand of European customers. Another plant, located in Aniche, has commissioned a new laminated glass for buildings line, allowing both a 50% increase in production and a significant reduction in production defects, while reducing energy consumption. in Germany, Saint-Gobain Weber expanded its Weilerswist plant (near Cologne) by mid-year, doubling the site’s surface area and increasing both its production and storage capacities. construction and automotive markets, and also the United States and Central American countries. In Mexico, the Group opened in 2021 a new line in Saltillo (Coahuila state) that will produce flat glass for the construction and automotive markets. The plant will be equipped with the latest cutting-edge technologies, both in terms of energy efficiency and Industry 4.0. The glass manufactured at this new site will serve the domestic In Asia, the Bioprocess Solutions Business Unit made two investments to manufacture single-use systems, one in South Korea, the other in China. With these new locations, Saint-Gobain will be able to ensure faster delivery times and a more independent supply from other regions, and therefore better continuity of service to its Asian customers in the event of supply tensions, thus limiting the risk of disruption. In Vietnam, a new plant producing fiber cement solutions, opened in September 2021, will enable Saint-Gobain to maintain its leading position in this growing market by being closer to its customers and thus reducing supply chain costs. The opening of this plant in the center of the country thus strengthens the Group in its position as market leader in fibrocement in Vietnam. As the first Saint-Gobain plant is located in the south of the country, this new site will be able to respond more quickly to the demands of customers in the north and center, thereby reducing supply and logistics costs. In China, the investment made at the Saint-Gobain Sekurit site in Shanghai will make it possible to produce laminated windshields for electric vehicles and reach an annual capacity of 900,000 pieces. In India, in Bangalore, the “Surface Solutions” Business Unit is investing in a new coated abrasives production line. In order to accelerate its development in South-East Asia, the Group has just inaugurated a new Weber site in Malaysia, which will produce coatings for interior and exterior façades, waterproofing and solutions for building chemicals, and also 3D printing solutions. These products will be mainly intended for markets in Malaysia and Singapore. Supporting the Group’s 4.1.3 commitments and its transformation To achieve its objectives in terms of minimizing its footprint, and in particular to respect its commitment to achieve carbon neutrality in 2050, Saint-Gobain set up a capital investment budget of €100 million per year for all initiatives (including research and development) aiming at reducing the Group's carbon footprint.