KL Glass, a subsidiary of F&N Holdings Bhd, has installed a new 200- tonne recuperator which will increase plant capacity by 30 per cent.
A recuperator regulates discharged waste gas and combustion in the furnace, which ultimately controls the furnace temperature.
At a media tour of the plant in Petaling Jaya yesterday, chief executive officer Tan Ang Meng said the company plans to target the premium glass sector following the expansion.
He said consumption of glass generally follows the country's gross domestic product (GDP) growth.
The plant upgrade also includes a forming machine and lehr, and a fourth production line.
"KL Glass is now among the most modern manufacturing plants in the region. It is more versatile, allowing us to meet the most stringent quality standards while managing a better product mix," general manager and F&N Holdings glass operations director Sim Kuang Meng said.
He added that the investment is also to prepare the company for the Asean Free Trade Area (Afta) and greater competition from companies in Thailand and Indonesia.
With the upgrade, KL Glass now has the capability to target the premium flint glass containers and jars sector.
KL Glass general manager Mogan Muniandy said the plant's fourth assembly line is meant for producing small glass containers.
Glasses are made mainly from cullet (crushed recycled glass) silica sand, soda ash and limestone. KL Glass produces glass for the food and beverage industries. The company is also looking to supply glasses for cosmetic bottles, mainly perfumes.
KL Glass is fully integrated with the Group's glass operations which includes Malaya Glass Products Malaysia Sdn Bhd. Malaya Glass operates on a 24-hour, three shift operation with a capacity to produce an average 600,000 bottles per day.
TKL Glass and Malaya Glass contribute about RM6 million and RM10 million respectively to F&N Holdings' total revenue.
About 10 per cent production is exported to Hong Kong, the Philipines and Papua New Guinea.