Zhejiang Glass Company

completed

_x000C_IFC proposes to provide financing to Zhejiang Glass Company, Limited (Zhejiang Glass or the company) – one of the five largest float glass manufacturers in China. Established in 1994 in Shaoxing County, Zhejiang Province, Zhejiang Glass has grown quickly in recent years. The IFC financing will be part of a balance sheet restructuring that the company is undertaking. Starting in 2003, Zhejiang Glass has expanded downstream into value-added products such as mirror glass, tempered glass, insulated glass, laminated glass and energy efficient low-emission (low-E) glass. At the end of 2005, the company operated five flat glass production lines with an aggregate daily melting capacity of 2,350 tons. It is also completing the construction of a 150-tons/day ultra-thin flat glass line which will come on stream by mid 2006. Zhejiang Glass is integrating upstream as well, and has constructed through its majority owned subsidiary, Qinghai Soda Ash Company Limited (Qinghai Soda Ash) a soda ash production line in Qinghai Province, in western China, which commenced operation in September of 2005. The soda ash line has a production capacity of 900,000 tons per year. Zhejiang Glass estimates that approximately 20% of the soda ash produced would be consumed internally in the glass production process, while 80% would be sold to third parties. Depending on actual results of the first soda ash production line Zhejiang Glass is considering constructing a second identical line to double its capacity.