Xinyi to Increase Annual Production Capacity by 1.2 Million Units of Auto Glass Next Year; Says Current Order Backlog Exceeds Three Months
August 17, 2010

Hong Kong-based Xinyi Glass Holdings Ltd. has announced that it will increase its annual aftermarket auto glass production capacity by 1.2 million units later this year. The company attributes its decision to increase production to "the strong surge in market demand."

"As the automobile glass market continues to show strong momentum in the third quarter this year, export price and sales volume of automobile glass continue a noticeable growth uptrend," writes the company in a statement. "Pushed up by robust market demand, the [Xinyi] Group's order backlog is at its record high level of [more than] three months."

The company plans to open a new aftermarket auto glass line to open in Shenzhen, China, later this year, with an annual production capacity of 800,000 units. The line is scheduled to begin production during the fourth quarter. In addition, Xinyi officials say an additional production line with an annual capacity of 1.2 million units of glass is scheduled to be put into place in the first quarter of 2011.

Once these are both into place, Xinyi officials say it will have a total annual aftermarket automobile glass production capacity of 13.5 million units of glass.

In early August, Xinyi announced it had entered into a Memorandum of Understanding with Pittsburgh Glass Works to explore "a potential formation of a joint venture or other cooperative effort to manufacture automobile glass products and to manage sales and service parts of automobile glass to OEM customers in China and export to global OEM customers." And, just last week, Xinyi reached a settlement with Saint-Gobain in the ongoing patent infringement suit; under the terms of the settlement, all proceedings were terminated "without admission of any infringement liability on either side," and the companies also "have entered into license agreements on other patents of Saint-Gobain for the use by the Group for its production and sales purposes."

Need more info and analysis about the issues?
CLICK HERE to subscribe to AGRR magazine.