Pilkington’s New Plant In China Started Its Commercial Operation

NSG announces that the start of commercial production from January 2007, by the float glass plant in Chuangshu, China newly constructed by Pilkington Group Limited (“Pilkington”), a member of NSG Group.

This plant is one of the technically advanced glass lines ever to be commissioned in China and to be operated by Chuangshu SYP Special Glass Co., Ltd., a 50/50 joint venture between Pilkington and Shanghai Yaohua Pilkington Glass Co., Ltd. (“SYP”).

With a total project cost of 715 m RMB (equivalent to US$90m), the plant is capable of producing around 180,000 tonnes of glass per year. The line, which produces 2 – 12 mm thickness high quality clear and tinted glass for building products and automotive glass markets for the region and for export.

The new plant is expected to generate annual revenues of over RMB 300 million (equivalent to US$40m). Approximately 200 jobs have been created directly and many more indirectly by the project.

Chuangshu is located in southeast Jiangsu Province, 90 km away from Shanghai. With easy access, good public utilities, competitive cost and favorable policies, it has attracted many domestic and foreign investors.

The Chinese market constitutes around a third of world market for glass and it still has considerable potential for high quality float glass. The venture demonstrates the Group’s commitment to expanding its business in China.

This venture partner, SYP was originally a float joint venture set up between Pilkington and local Chinese partner in 1983. Is was public listed in Shanghai Stock Exchange in 1993 and is one of the leading glass manufacturers in China. Pilkington currently holds around 19 per cent SYP shares. In addition to this venture, SYP owns four float lines ( two in Shanghai, one in Tianjin a nd one in Guangdong )

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