Fuyao Group, after announcing its plans to seek listing on Hong Kong Stock Exchange and overseas expansion on September 24, stated on October 22 that it will raise 220 million dollars to set up a subsidiary featuring float glass in Russia’s Kaluga, and invest another 200 million dollars to build a subsidiary based in Ohio, USA, to carry on anautomobile safety glass project. Records show that in 2011 Fuyao Group established its first and so far the only overseas factory in Kaluga, which cost 661 million yuan and will be able to produce 3 million sets of automobile glass every year. In September, the firstline with a capacity of 1 million sets was put into operation; the other two will follow suit soon. To supply the factory with raw materials, Fuyao Group decided to build two float glass lines nearby, one having a daily melting capacity of 600 tons and the other 900 tons.
The contemplated project in the US, with the most advanced facilities and a 3-million-set production capacity, will become an equal of Russia’s factory. As a leading producer ofautomobile glass in China, Fuyao Group has a 70-percent market penetration at home; its market share abroad, recorded at about 15 percent, has great potential for further growth. Seeking listing in Hong Kong is also part of its global strategy. According to its plans, all capital raised through the attempted H-share issue, after deduction of costs and expenses, will be used to build plants, marketing and service networks, as well as R&D and design centers in Russia, US, Europe, and other regions in America.