China Glass Holdings, the nation's largest listed flat-glass producer, and strategic partner Britain-based Pilkington have agreed to set up a low-iron glass manufacturing joint venture costing 337.3 million yuan.
China Glass will tap Pilkington's technology and management expertise in the production of low-iron flat glass, which is more transparent in appearance than normal glass due to lower iron content.
China Glass and Pilkington will each contribute 67.46 million yuan in cash as registered capital for a 50 per cent stake in the venture in Taicang, Jiangsu province.
Beijing-based China Glass, which has production facilities in Jiangsu, will fund its part of the registered capital by a bank loan. It did not say how it would fund the rest of the investment.
'The directors consider that [the joint venture] will broaden the revenue base of the group,' China Glass said, adding its products will be sold in Asia, Africa and North America.
Pilkington, a leading producer of windshield glass and wholly owned by Japan's Nippon Sheet Glass, amassed a 9.9 per cent stake in China Glass during the firm's initial public offering in June last year.