Zhejiang Glass Company

completed

Zhejiang Glass Company, Limited (Zhejiang Glass or the company) is one of the five largest float glass manufacturers in China, and listed on the Main Board of the Hong Kong Stock Exchange. Established in 1994 in Shaoxing, Zhejiang province, the company has grown rapidly in recent years. It currently operates five flat glass production lines with an aggregate daily melting capacity of 2,350 tons; and ix glass processing lines for the production of value-added products such as tempered and laminated glass as well as energy efficient low-emission glass. In addition, the company has integrated upstream by investing into a 900,000-ton per year soda ash production line in Qinghai Province, in western China, which commenced operation in September 2005. Most of the company’s glass production is destined to the construction sector although it has diversified its sales to the automotive and electronics sectors. Like many fast growing Chinese companies, Zhejiang Glass has relied on short term debt to fund a significant part of its capital expenditures. During 2004-5, the company has accumulated approximately $200 million equivalent of short-term debt. The project involves the reduction and refinancing a significant part of its debt through a balance sheet restructuring plan.