Flat Glass Group Co., Ltd. of China has announced production expansion with the addition of 6 new lines to produce PV glass. It says each production line will have a daily melting capacity of 1,200 tons a day, translating into 7,200 tons a day when these lines are up and running.
It plans to realize the new capacity as 2 projects. Under project I, it will invest RMB 2 billion to build 2 PV glass production lines and supporting processing lines in Xiuzhou district of Jiaxing city. Under project II, it plans to invest close to RMB 3.8 billion to build 4 lines and supporting processing lines in Fengyang county of Chuzhou city. Project II will be managed by the group's subsidiary Anhui Flat Photovoltaic Glass Co., Ltd.
On completion, both project I and II are expected to generate more than RMB 2 billion and RMB 4 billion in sales revenues, according to the company's estimates.
Flat Glass said this investment should be read as the company's response to the market demand for large size solar modules and bifacial modules, to further increase its market share. At the same time, it will enable the company to benefit from economies of scale.
"After the investment is completed, there will be no new connected transactions and horizontal competition," added the management.
This announcement from Flat Glass follows its plans to construct 5 PV glass furnaces each with a daily melting capacity of 1,200 tons recently which it targets to put into production in 2022.
Flat Glass Group's announcement should be music to the ears for global PV industry coming as it does amid fears of PV glass shortage that has led deep pocketed module makers to snap up long term deals with raw material manufacturers of late. In February 2021, Flat Glass secured a massive deal with JinkoSolar to support the latter's 59 GW high efficiency module capacity expansion plans (see Flat Glass Bags 59 GW Solar Glass Deal With JinkoSolar).
The group also shared its annual financial results of 2020 growing its annual operating income by 30.24% to RMB 6.26 billion ($955 million). It attributed this growth to the new capacity coming online along with stable and strong increase in demand in the global PV industry.
Since PV glass is the company's main business driver, this category contributed RMB 5.22 billion ($796 million) to the total revenues, growing its share from RMB 3.74 billion in 2019.
The group's gross profit for the year went up 92.07% to RMB 2.91 billion ($444 million), with gross profit margin increasing to 46.54%, compared to 31.56% in 2019. Growth in gross profit margin was due to improvement of gross profit margin in PV glass products (49.41%), and increase in sales volume of thin glass of 2.00mm, among other reasons.
It also increased its investment in R&D activities by 39.47% to RMB 284.72 million ($43 million).
"PV glass products, being the principal products of the Group, is expected to remain the main driver of the Group's growth in 2021," it added.
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