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Luoyang outlines plan to create global glass giant

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H share Luoyang Glass hopes the four big state-owned asset management companies (AMC) will consolidate their equity holdings in various manufacturers to create one of the world's biggest float glass makers.

The proposal promised to help ease the glass glut and tap economies of scale, said chairman Guo Xiaohuan.

He hoped the resulting group would co-ordinate procurement and marketing activities around the country.

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He planned to initiate a meeting during the second half of the year with the AMCs to discuss the idea.

'I think this is a step that has to be taken. Without it, the domestic industry may continue to engage in disorderly competition,' Mr Guo said.

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Beijing created the four AMCs in 1999 to clean up non-performing debts at the four big state-owned commercial banks - the Bank of China, China Construction Bank, Industrial & Commercial Bank of China and the Agriculture Bank of China.

Mr Guo said the AMCs together had about 20 per cent of the shares in China Luoyang Float Glass Group, Luoyang Glass's parent.

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