China Glass

completed

China Glass Holdings (CGH or the company), is a float glass manufacturer currently in the process of acquiring eight smaller glass companies across China. Once the acquisitions are completed, CGH will become the largest listed float glass company in China with 14 production lines and a melting capacity of 4,780 tons per day (tpd). CGH also plans to invest in a joint-venture to establish manufacturing of solar glass. The float glass market in China is highly fragmented with currently 52 local glass manufacturers. Demand for float glass has grown at a strong CAGR of 14% between 2000 and 2005, with slowing growth in 2006. In parallel, substantial supply was added to the current stock, putting pressure on prices. The market however now appears to be stabilizing with a noticeable increase in prices in late 2006 and early 2007. Through its ongoing acquisitions, CGH will contribute to the consolidation of the flat glass sector in China, helping to reduce future volatility.