Nippon Sheet Glass Co., Ltd. (TSE: 5202; "NSG") will establish a new wholly-owned subsidiary in China to cope with expanding markets for rubber impregnated glass cords for the reinforcement of rubber drive belts in automotive, industrial and household applications.
The new company to be set up in the suburb of Suzhou is planned to start commercial production in July 2006.The total investment is estimated to be JPY1.4 billion (US$14 million).
In addition to the existing three plants producing glass cords located in Japan, the UK and Canada, the new plant in China will reinforce NSGfs global supply network of the product as its forth plant in the world. With this expansion, NSG will further advance the development of this business.