Asahimas Building Glass Business Enhancement with New Float and Off-Line Coater Investment

This new state-of-the-art float glass furnace with an approximately 16 billion Japanese Yen (USD 155 million) investment has been inaugurated.

This Factory, which location is adjacent to the Company’s Cikampek Automotive Glass Fabrication Factory, is expected to start the production in the beginning of December 2016.

With the operation of this new Factory, the Company’s total capacities of float glass will jump up to 630,000 tons p.a. Previously, the Company has two float glass furnaces, each at its Jakarta Factory and Sidoarjo Factory (with a total production capacity of 570,000 tons p.a.) for the production of float glass used for architectural and automotive applications.

In October this year, the Company has closed one of its two furnaces in Jakarta Factory with a capacity of 150,000 tons p.a., which in turn (after the start-up of the New Float Glass Factory), has made a significant enhancement in the Company’s total float glass production by more than 10% or 60,000 tons p.a.

The overview of the New Factory is as follows:

Location : 

Cikampek, West Java, Indonesia

Production capacity : 

Approx. 210,000 tons of float glass/year

Special features :

a. 40% greater production capacity as compared to the existing furnace.
b. Environmentally friendly furnace with world-class fuel efficiency.
c. Produce high-quality glass for various applications including architectural and automotive use
d. Enables efficient integrated production in conjunction with the adjacent Automotive glass fabrication plant

In addition, to cope with increasing market demand and to support government initiative and policy of Green Building, the Company also have plan to install a state-of-the-artoffline magnetron coater with European Technology in Cikampek as well.

This approximately 6.0 million sqm p.a. coater, which will commence in 1H18, will allow the Company to expand energy saving product range by improving the performance of glass in both solar control and thermal insulation, while still providing appropriate level of light transmission.

The green products would also stimulate the usage of processed glass and also develop the capability of local glass industry player.

And for the end customers, they could have more options in glass performance and aesthetics to meet their design preference and enjoy significant energy saving cost of their building.

This magnetron coater will also serve to supply regional demand of energy saving product, especially in SE Asia and Oceania market, thus enhancing the Company position as regional player.

For the future development, the Company will continue to observe the economic condition and take necessary action in a timely manner to meet growing demand of domestic and export market.

The Company will also take into account the latest Government Master Plan regarding the change of Ancol Area usage from Industrial purpose to Commercial purpose in its mid-term and long-term planning.

By considering all of the above factors, the Company will not hesitate to use the opportunity to consider its further capacity enhancement as already shown in its new Float Glass Factory in Cikampek.

For the record, the Company currently still has sufficient land for the next investments, in both Sidoarjo and Cikampek Factories. The later (around 60 ha in Cikampek) was bought back in 2011.

This further investment will be realized in line with the Company’s plan to relocate from Ancol Area (the Location of Jakarta Factory) due to the reasons as has been stated above