Taiwan Glass Ind. Corp. has announced that with optimistic prospects for its China investments it expects to become one of the top-10 world glass manufacturers by the end of 1997, with a targeted annu…
Taiwan Glass Ind. Corp. has announced that with optimistic prospects for its China investments it expects to become one of the top-10 world glass manufacturers by the end of 1997, with a targeted annual revenue of NT$ 14 billion and projected annual production of 1.15 million tonnes of glass for that year. Taiwan Glass“s mainland subsidiary, Qingdao Float Glass Corp., started operations in August 1995. It currently turns out 11,000 tonnes of glass per month, about 90% of the projected monthly production. Qingdao Float Glass is one of the largest mainland investment projects approved by the Investment Commission under the Ministry of Economic Affairs (MOEA). Taiwan Glass applied for permission to invest US$ 30 million in the US$ 83 million project, with the remaining US$ 53 million financed by banks or foreign partners. Taiwan Glass applied for the investment in 1993. The government evaluated the project as a special mainland investment case because it involved transferring high technologies into the mainland, according to Lin Po-fong, president of Taiwan Glass. Initially, Qingdao Float Glass, located in Qingdao city, Shandong province, will exclusively manufacture float glass. Later, the mainland factory may diversify its products to mirror glass and tempered glass. It took about two years to construct the factory. Taiwan Glass chose Qingdao as the location for the glass factory because of the abundant silica resources there. The port of Qingdao also provides convenient transportation for outbound shipments. Currently, Qingdao Float Glass exports 70% of its glass, leaving 30% for sale in the mainland market. Prior to establishing Qingdao Float Glass, Taiwan Glass had set up a glass factory in Qingdao through its overseas subsidiary in the US. This factory, set up about two years ago, primarily manufactures rolled glass. The two factories currently operate with a combined staff of nearly 1,000 employees. Taiwan Glass is planning to set up a third mainland factory in Kunshan, Jiangsu province, which is projected to begin operations in August 1996. The factory is also an investment by its US subsidiary, which is initially putting up nearly US$ 93 million. “When the third factory is constructed, the mainland investments of Taiwan Glass will be nearly US$ 200 million,” Lin estimates. Although Qingdao has abundant silica resources, the mainland-operated glass factories there are all small scale. Currently, Qingdao Float Glass is the largest enterprise in Qingdao. Taiwan Glass sent 60 Taiwanese managers there when it set up the firm. “So far, Qingdao operates smoothly. With its successful experience, it will be a model for the Kunshan factory to follow,” Lin says.