Feasibility studies on glass-fibre production in Asian countries including China are to be conducted by Asahi Fiber Glass Co., a Japanese-based joint venture of Asahi Glass Co., of Japan, and Owens-Co…
Feasibility studies on glass-fibre production in Asian countries including China are to be conducted by Asahi Fiber Glass Co., a Japanese-based joint venture of Asahi Glass Co., of Japan, and Owens-Corning Fiberglass Corp., of the US. The company will decide on a production site by spending about one year to complete a feasibility study to be started in 1996. This step follows the recent agreement reached between the two parent firms to the effect that Asahi Glass will take over early in 1996 all the shares Owens-Corning has in Asahi Fiber Glass. The joint venture formed in 1956 is the largest maker, in Japan, of glass fibre used for glass-fibre-reinforced plastics and of glass wool for heat-insulation and sound-absorbing materials. Asahi Fiber Glass has three plants in Japan – in Kanagawa, Ibaraki and Kyushu – supplying its products mostly to Japanese users and its exports are limited to certain parts of China because of the strategic interests of the American partner. On gaining entire control of Asahi Fiber Glass, Asahi Glass will be able to deploy glass-fibre operations on a full scale in Asia. The top Japanese glassmaker sees Asian glass-fibre markets expanding at a fast pace in line with the shifting of Japanese FRP makers to developing Asian countries as well as the rapid economic development of Asian nations. The company also announced its unconsolidated half-year results on 6 November, 1995. The company reported that architectural and fabricated glass sales had been hit by falling exports to the commercial building and vehicle sectors. The figures were the first since the company changed its reporting year from January-December to April-March. It said recurring profits for the half-year to September were JPY 14.3 billion (US$ 140.7 million). Sales totalled JPY 454.3 billion and after-tax profits came to JPY 8.2 billion. Sales of Asahi“s mainstay glass operations were JPY 219.2 billion, or 48.3% of the total. Sales of glass for construction use and for cars were weak, while glass bulb sales remained firm, supported by strong domestic and international demand. Ceramics and refractories generated sales of JPY 12.8 billion. For the full year to March 1996, Asahi expects unconsolidated sales of JPY 910 billion, recurring profits of JPY 31 billion and after-tax profits of JPY 20 billion. It expects to pay an annual dividend of JPY 9 a share.