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PPG, Nan Ya to Build Chinese Fiber Glass Plant

07 December 2000

PPG Industries and Nan Ya Plastics Corp. of Taiwan plan to build a plant at Kunshan, China, to make fiber glass yarns primarily for electronics customers. The project is subject to Taiwan government approval. PFG Fiber Glass (Kunshan) Co. Ltd. will produce electronic yarns in a Kunshan industrial economic development zone west of Shanghai. Nan Ya, a major printed circuit board producer, is building an adjacent complex that will include weaving, laminating and circuit board production facilities. It will be PFG (Kunshan)'s principal customer. Kevin F. Sullivan, PPG vice president of fiber glass, said construction is expected to begin early next year with startup scheduled in early 2003. While the facility will have one melting furnace at startup, Sullivan said the site allows for significant future expansion. A holding company established in Hong Kong will operate the Kunshan facility. C.F. Lee, a Nan Ya executive, said Shanghai plans to become a world-class high technology center by 2005, and that Nan Ya's Kunshan complex and the PFG (Kunshan) facility will contribute to that objective. He noted that fiber glass yarns for electronics applications is a US$500 million global market with growth of about 7 percent a year, and the printed circuit board segment is growing at 8-10 percent. He said about 60 percent of the growth in electronics applications is in Asia. Another PPG-Nan Ya joint venture, PFG Fiber Glass Corp., has produced fiber glass electronic and specialty materials yarns and reinforcements at Chia Yi since 1991. It is the fastest growing and largest electronic yarn producer in Asia. Nan Ya manufactures primarily plastics, fiber and electronic materials, with sales of US$3 billion in 1999. PPG is a leading global supplier of coatings, fiber glass, fabricated glass and chemicals with about 120 production locations. Its 1999 sales were US$7.8 billion.