NSG Group to Expand Float and Coating Operations in China with $52.8 Million Investment; Look to Increase Production of Low-E Glass for Growing China MarketThe NSG Group, which owns Pilkington, announced this week that it has reached an agreement with Shanghai Yaohua Pilkington Glass Co. Ltd. (SYP) to expand its float and coating operations in Tianjin, China.
August 18, 2010
The two companies will be investing in a joint venture to install NSG’s online coating technology onto an existing float line that is majority-owned and managed by SYP. In addition, NSG Group and SYP also have agreed to invest in a further project to build a new float line with the same online coating technology adjacent to the existing line in Tianjin. The project is intended to increase production of low-E glass for the China market.
“China already accounts for approximately 50 percent of the global demand for flat glass and the demand for energy-saving coated glass in China is experiencing rapid growth,” says NSG Group president and chief executive officer Craig Naylor. “We believe our world-leading online coating technology will enable us, in partnership with SYP, to gain rapid growth in market share in this sector. In addition, the online coating technology will open up new opportunities for growth in other sectors with value added products.”
The total investment by NSG Group in both projects is expected to be approximately
$52.8 million U.S. dollars (4.5 billion Japanese Yen). NSG Group initially will acquire a 37.5 percent stake in the joint venture, but this will subsequently increase to approximately 45 percent as the new float line is built, according to a statement from NSG.
Completion of the transaction is subject to a number of conditions, including appropriate regulatory approvals in China, according to the companies.
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