Taiwan Today

Taiwan Glass Industry Corp. and partners are investing US$485 million (around NT$16 billion) in mainland China to produce raw materials for glass manufacture, the firm announced Sept. 16. The consortium will build a sodium carbonate plant on 2,400 acres in Huai’an, Jiangsu. The plan has been approved by the mainland’s State Council, and will begin construction Sept. 27. It is expected to produce one million tons of sodium carbonate and amines by 2012. This is the first time TGI has crossed over into the production of raw materials for making glass, and is its largest investment plan ever. After the Huai’an plant is in operation, its capacity will be third largest in the mainland. In recent years the mainland’s production of sodium carbonate has been increasing steadily, reaching a peak in 2008. Production fell off about 3 percent in the first eight months of 2009 compared to last year. Huai’an City has released 4,800 acres to TGI, which is using half of the area for its sodium carbonate plant. P. F. Lin, chairman of TGI, said this project is a joint investment along with venture capitals and other partners. They will set up a company called Shilian, with capital of US$300 million and 30 percent of the shares held by TGI. He is not at liberty to disclose the shares of the other investors, the chairman said. This project is not TGI’s largest single investment, Lin noted, but the total investment of US$485 million in the sodium carbonate plant “is TGI’s biggest investment plan.” The Huai’an plant will be able to supply TGI’s roughly 600,000-ton annual demand. Of the remaining 400,000 tons, 100,000 will be sold to venture partners, leaving 300,000 tons to be sold for additional profit. Lin said future investments would be concentrated in its own field: sodium carbonate and glass. Provided it has sufficient capital and government permission, TGI will continue to expand its investments on both sides of the strait. In the Changpin Industrial Park in southern Changhua County, its investment of over NT$1 billion in photovoltaic glass substrates is hung up on the issue of land purchase at the moment, but Lin said, “I will very definitely make this investment in Taiwan.” (THN)