Asahi Glass Seeks Flat Glass Price Rise

Asahi Glass Co. intends to increase the prices of construction flat glass & related products by 10-20% from 1 January 2008, to reflect higher material & fuel costs. The wholesale price of flat glass in Tokyo is around JPY 1,180/sq-m, relatively unchanged since the end of 2001. The industry leader may encounter resistance from homebuilders, with housing demand under pressure from stricter building standards. In June 2006, 3 major glass manufactures announced plans to raise prices, but they failed to gain acceptance among customers because of inflows of cheap imports. The effect of higher material & fuel prices is beyond the company's ability to absorb through such efforts as cost cutting in other areas, said an Asahi Glass official.