In spite of Chinese government declarations aimed at curbing excessive industrial investment, a major glassmaker has succeeded in obtaining a CNY 1.2BN loan from a state bank in order to increase its soda ash production 50%. Zhejiang Glass has a managed to secure financing on preferential terms because it is in the western province of Qinghai, whose development is a priority for Beijing. The company will increase investment in the new plant from CNY 800M to CNY 1.5BN & its annual production capacity of soda ash will go up from 600,000/t to 900,000/t. The firm has secured a zero-interest deal on part of the loan, while the remainder will be charged at 20% discount to the capital market rate, according to Zhejiang Glass chairman. The firm, which had a cash balance of just CNY 150M at end-June/03 proposed building the plant to secure long-term supplies.
