Taiwan Glass Industry Corp. will, according to the company“s president P.S. Lin, spend a total of USD 160 million by 2011 to increase production capacity in Taiwan and China.
Lin also said that the …
Taiwan Glass Industry Corp. will, according to the company“s president P.S. Lin, spend a total of USD 160 million by 2011 to increase production capacity in Taiwan and China. Lin also said that the company expects demand for low-E glass from property developers to strengthen in China. “The extra cost of low-E glass will be recouped through energy savings,” Lin said. Taiwan Glass, the island“s largest glassmaker for capacity, will increase its low-E glass production capacity in Taiwan to 31,000 metric tons a year by 2011 from 7,000 tons. The company already has one production line in China with an annual capacity of 24,000 tons a year and will add a further three production lines with annual capacities of 24,000 tons each in China by 2011, with capital expenditure financed by cash on hand and loans from Chinese banks. He added that said prices for flat glass, the company“s main product, have recovered in China and the company will recoup its losses in the first half of the year, also expecting to return to profit this year. “Flat glass prices already recovered, but prices for fiberglass and glass yarn are only at break-even level. When those will recover, profit will recover,” Lin said. “The key is demand from the electronics industry.” Taiwan Glass reported a net loss of TWD 553.7 million in the six months ended 30 June 2009, down from a net profit of TWD 635.2 million for the same period in 2008, due to effect of the global financial crisis on demand and prices of glass.