Asahi Glass plans second flat glass facility for India

Asahi Glass Co., plans to build a second flat-glass plant in India through a local joint venture in order to meet the fast rising demand from automakers there, it was reported on 21 July 2005.
The fi…

Asahi Glass Co., plans to build a second flat-glass plant in India through a local joint venture in order to meet the fast rising demand from automakers there, it was reported on 21 July 2005. The firm will invest an estimated JPY 13 billion in the new facility, which is set to begin producing unprocessed flat glass in fiscal 2007. The plant will boost the company“s total production capacity in India by 140% to 1,200 tons a day. Asahi Glass aims to maintain its lead in the Indian market, where it has more than 80% of the market. The plant will be built on a 210,000-sq.-meter site at Uttaranchal in the north of the country. It will produce 700 tons a day of unprocessed flat-glass for shipment to processing facilities in Rewari in the north and Chennai in the south. Currently, Asahi Glass“ sole flat-glass plant in India is located in the west of the sub-continent and has a daily production capacity of 500 tons. Asahi Glass has a 22.2% stake in Asahi India Glass Ltd., while Suzuki Motor Corp. joint venture Maruti Udyog Ltd. has an 11.1% holding. Asahi India plans to supply not only Maruti but other local automakers. Car production in India exceeded 1 million units for the first time in fiscal 2004 and is expected to reach 2 million in fiscal 2010. Demand is expected to climb as Maruti, Toyota Motor Corp., Honda Motor Co. and Hyundai Motor Co. increase local production. US bank Citigroup Inc. will supply more than half of the financing, or USD 65 million. Nippon Export and Investment Insurance will provide insurance for the first time to a Japanese unit in India using a new insurance policy that covers not only business risks but also natural disasters and political risks.