AGC to Enhance Float Glass Production in Indonesia

AGC (Asahi Glass Co., Ltd.; Head Office: Tokyo; President & CEO: Kazuhiko Ishimura) announces that the Company has decided to invest approximately 16 billion Japanese yen to PT Asahimas Flat Glass Tbk (AMG), one of AGC’s consolidated subsidiaries in Indonesia, and newly set up a state-of-the-art float glass furnace in the country to replace a float furnace at the Jakarta Plant.  The new furnace will be constructed adjacent to AMG’s Cikampek Plant, an automotive glass fabrication plant in Cikampek area.

Mass production is scheduled to start in the third quarter of 2016.

With a 40% increase in the production capacity, the new furnace will significantly enhance AMG’s float glass production.

AMG currently has two float glass furnaces each at its Jakarta Plant and Sidoarjo Plant (with total production capacity of 570,000 tons a year) for the production of float glass used for architectural and automotive applications. Demand for architectural glass and automotive glass in Indonesia is expected to keep growing against the backdrop of the country’s steady economic growth. The construction of a new furnace is intended to achieve a competitive production framework to meet the growing demand in the region. Also, the enhanced production will help AMG to accommodate the latest changes in Jakarta city master plan, which will change the existing industrial area to become commercial use in the near future.

In an effort to enhance its float glass production under such circumstances, AMG will terminate one of the existing float furnaces at the Jakarta Plant and newly build a state-of-the-art furnace that can accommodate various products in the area adjacent to the Cikampek Plant.

The overview of the new furnace is as follows.

1. Location: Cikampek, West Java, Indonesia

2. Production capacity: Approx. 210,000 tons of float glass/year

3. Special features: a) 40% greater production capacity as compared to the existing furnace

b) Environmentally friendly furnace with world-class fuel efficiency

c) Produce high-quality glass for various applications including architectural and automotive use

d) Enables efficient integrated production in conjunction with the adjacent automotive glass fabrication plant

AGC will continue to strengthen its growth foundations by steadily capturing expanding demand in emerging markets.

Media Contact

Junichi Kobayashi, General Manager, Corporate Communications & Investor Relations

AGC Asahi Glass Co., Ltd.

(Contact: Yasuo Sugiyama; Tel: +81-3-3218-5603; E-mail: info-pr@agc.com)

Overview of AMG

1. Company name: PT Asahimas Flat Glass, Tbk

2. Representative: Mampei Chiyoda

3. Location: Jakarta, Indonesia

4. Capital: 217 billion rupiah

5. Investment ratio: AGC 43.9% (AMG is a consolidated subsidiary of AGC), Rodamas(*) 40.8%, Others 15.3%

* AGC’s local partner

6. Establishment: 1971

7. Products: Architectural glass, raw and fabricated glass for automotive use, industrial glass, mirror

8. Float glass production capacity:

570,000 tons/year

(Until the 2nd quarter, 2016, before the construction of the new furnace)

630,000 tons/year

(In and after the 3rd quarter, 2016, after the operation started)

* The overall production capacity will be increased by approx. 10%.

9. Production bases:

600450 AGC to Enhance Float Glass Production in Indonesia glassonweb.com

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