Auto and building glass manufacturer Xinyi Glass Holdings, will cut its investments for expanding production in 2006 and concentrate instead on research into energy-saving glass. The cut followed the posting by the Hong Kong-listed firm of a 10.3% increase in net profit to HKD 260.1M in 2005, significantly lower than the 27.2% increase in 2004 & 22.1% in 2003. The slowdown was attributed to the fact that two new production lines in Dongguan, which began operations in 2005, had not reached full capacity. The company will switch its capital expenditure to research on energy-saving glass, which involves coating the glass to reduce heat penetration and enhancing existing vehicle glass production. The new R&D facility will be built in the Dongguan factory end-2006.
