Asahi Glass (AGC) has announced that it has decided to invest approximately JPY16bn (US$152.6m) in Asahimas Flat Glass (AMG), one of AGC’s consolidated subsidiaries in Indonesia, and set up a float glass furnace in the country to replace one at the Jakarta plant.

The new furnace will be constructed adjacent to AMG’s Cikampek plant, an automotive glass fabrication unit in Cikampek. Full production is scheduled to start in the third quarter of 2016.

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With a 40% increase in production capacity, the new furnace will significantly enhance AMG’s float glass production.

AMG currently has two float glass furnaces each in Jakarta and Sidoarjo (with total production capacity of 570,000 tonnes a year) for the production of float glass used for architectural and automotive applications. Demand for architectural glass and automotive glass in Indonesia is expected to keep growing against the backdrop of the country’s steady economic growth. The construction of a new furnace is intended to achieve a competitive production framework to meet the growing demand in the region. Also, the enhanced production will help AMG to accommodate the latest changes in the Jakarta city master plan which will change the existing industrial area to commercial use in the near future.

To enhance float glass production under such circumstances, AMG will close one of the existing float furnaces in Jakarta Plant and build a new furnace that can accommodate various products in the area adjacent to Cikampek.

AGC said it would continue to grow “by steadily capturing expanding demand in emerging markets”.