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. China Glass saw net profit plunge 79.1 per cent to 16 million yuan last year due to softer glass prices on the back of industry oversupply, as well as surging raw material and energy costs. It further plunged into a net loss of 28.33 million yuan in this year's first half, compared to a profit of 16.02 million yuan in the same period last year. The company, 42.56 per cent-owned by personal computer giant Legend Holdings, announced in February a plan to acquire seven struggling rival firms for 416 million yuan through a joint venture with Pilkington and Legend Holdings. The deal saw China Glass' production capacity surge to 4,780 tonnes a day from 600 tonnes.