Asahi Glass Co (AGC) is set to establish a new auto glass plant in China at its subsidiary AGC Flat Glass (Suzhou) Co, with a total investment of JPY4.5bn ($46m).
AGC said it will stop operating the current manufacturing facilities for photovoltaic cover glass at AFS, and will convert the relevant assets into a plant for producing auto glass.
Auto production in China is estimated to go beyond 20 million units in 2013, and will continue to grow at a high rate of 5% every year, resulting in high demand for automotive glass.
The new automotive glass plant, which is the third of its kind in China, will have an annual capacity to equip nearly 1.2 million vehicles, increasing AGC's total capacity in China to about 3.6 million vehicles.
According to AGC, AFS satisfies all the conditions required to establish a new automotive glass plant.
