Post Time：Dec 08,2010Classify:Industry NewsView：382
China Glass (3300) plans to switch at least half of its production lines to making high value-added products by 2012, a move that may significantly increase its gross profit margin.
The move follows its takeover of JV Investments, which has the technology to turn out high value-added glass products, said vice president Cheng Xin.
The gross profit margin for high value-added glass is between 50 and 70 percent, Cheng said, while the margin for construction glass - its major product - is 10 percent.
Current daily capacity at its 17 production lines is 6,170 tonnes, up to 80 percent of which is construction glass.
"Within two years, the proportion of construction glass in our product mix will be cut to below 50 percent," he said.
The cost of upgrading a traditional production line to make high-end glass is between 20 million yuan (HK$23.33 million) and 30 million yuan.
Cheng said there is no further need to tap funds. China Glass raised HK$373.5 million last month by placing 83 million new shares to buy the 42.1 percent stake it did not already own in JV Investments.
Source: China GlassAuthor: shangyi
