May 13, 2017 7:00 am JST

Asahi Glass to boost output capacity in Indonesia

Japanese manufacturer to cash in on rising Southeast Asian construction demand

TOKYO -- Japan's Asahi Glass will bolster its flat glass production in Indonesia, hoping to meet Southeast Asia's soaring demand as more high-rise buildings are developed in the fast-growing region.

The world's largest glassmaker will spend around 19 billion yen ($167 million) for a new float furnace that will boost annual output capacity in Indonesia by about 10% to roughly 720,000 tons. The furnace is expected to begin operating in spring 2019.

The company's Cikampek plant in the province of West Java will house the new equipment, while also taking on aging furnaces and mirror manufacturing tools from its Jakarta plant and upgrading them. The new furnace will have a yearly production capacity of 210,000 tons, up 40% from the older equipment before upgrades, while annual mirror output capacity is seen rising 30% to 6.8 million sq. meters. Once the new equipment is operating, the Jakarta plant will be shut down and its property will be sold.

Asahi Glass is looking to capitalize on Indonesia's growing need for architectural glass for office buildings and homes. The company also plans to begin producing energy-saving glass that can block outdoor heat as early as the summer of 2018.

(Nikkei)

Asahi Glass Co., Ltd.

Japan

Market(Ticker): TKS(5201)
Sector:
Industry:
Process Industries
Industrial Specialties
Market cap(USD): 9,662.50M
Shares: 1,186.70M

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