China Glass Holdings Ltd will pay CNY 416 million (USD 51.7 million) to buy controlling interests in seven rival domestic glassmakers, making it the largest listed flat glass producer in China, the fi…
China Glass Holdings Ltd will pay CNY 416 million (USD 51.7 million) to buy controlling interests in seven rival domestic glassmakers, making it the largest listed flat glass producer in China, the firm said 14 February 2006. Following the acquisitions, the Hong Kong-listed company“s daily melting capacity will more than triple to 4,780 tons from 1,500 tons, and the number of production lines will rise from three to fourteen. The deals would be done through a wholly-owned subsidiary of China Glass and a joint venture between China Glass, Legend Holdings Ltd (the parent of personal computer giant Lenovo Group) and British glassmaker Pilkington Plc, it said. The companies to be acquired include Shaanxi Blue Star Glass, Wuhai Blue Star Glass, Weihai Blue Star Technology Industrial Park, Weihai Blue Star Glass, Zhongbo Technology, Beijing Qinchang Glass and Zhejiang University Blue Star New Materials Technology. China Glass will finance the deals from its own cash and bank loans. The acquisitions will also help China Glass explore more foreign markets, such as the Middle East, with the help of existing networks of the companies to be acquired. China Glass currently exports about 40% of its products, mainly to South Korea.