A reduction in 1995“s earnings of 4.5 million yuan could arise from the technical problems which have forced Luoyang Glass to suspend a production line.
Luoyang Glass said the production line was su…
A reduction in 1995“s earnings of 4.5 million yuan could arise from the technical problems which have forced Luoyang Glass to suspend a production line. Luoyang Glass said the production line was suspended on 17 January due to problems such as impurities and spots in the glass produced, and leakage of glass fluid. The shutdown of the second line overlaps with regular maintenance of the first line, and further reduces production of sheet glass by 15,000 tonnes in 1996. The company expects the maintenance to last 45 days and cost about 18 million yuan, which will come from reserve funds. However, the announcement did not dampen enthusiasm for the H-share company, as investors believe that the government will loosen control on credit. Last week Dai Xianglong, governor of the People“s Bank of China, said the lending quota would be 650 billion yuan for 1995, compared with 638 billion yuan in 1994, and could be increased.