Xinyi Glass Holdings, the largest Chinese autoglass and windshield exporter, has bought a laminated glass manufacturer for HKD 236.98 million to strengthen its global market position.
Chief executive…
Xinyi Glass Holdings, the largest Chinese autoglass and windshield exporter, has bought a laminated glass manufacturer for HKD 236.98 million to strengthen its global market position. Chief executive Gerry Tung said the acquisition of Shenzhen China Southern Automobile Glass as a new subsidiary was also expected to contribute USD 300 million to Xinyi“s turnover by the end of 2008. “The acquisition will help consolidate our role as a leading vehicle glass manufacturer and exporter in both the domestic and overseas markets and allow our business to grow more rapidly”, said Mr Tung said. “The deal will help boost our production capacity while generating a greater turnover for our company”. Xinyi Glass holds 35% of China“s aftermarket for car glass and about 10% of the global aftermarket. Shenzhen CS Automobile Glass, a unit of China Southern Glass, is one of the country“s top three laminated autoglass exporters. It has an annual production capacity of 1.3 million units of car glass products and holds 3% of the domestic market. Xinyi Glass has an annual production capacity of 8.3 million pieces. In 2006, its total turnover was HKD 1.9 billion. “Our total turnover and earnings will continue to rise in the next few years, thanks to the company“s healthy growth and the whole car market”, said Wesley Lee, Xingyi Glass“s executive director. He ruled out the prospect of the appreciating Chinese currency squeezing the firm“s export business. Morgan Stanley said Xinyi Glass“s turnover should rise to HKD 2.86 billion and net earnings to HKD 664 million in 2007.