Announcement of IFC Investment in First Fusion Glass Manufacturing Plant in India March 10, 1987

Tuesday, March 10, 1987 Bruce McWilliams Press Release No. 87/47 (202) 676-1950 IFC TO INVEST IN INDIA'S FIRST FUSION GLASS MANUFACTURING PLANT The International Finance Corporation (IFC) will invest up to $9.3 million in India's first fusion-process plate glass manufacturing facility, it was announced today. Employing the Corning fusion technology, the new plant will produce approximately 6.6 million square meters per year of high-quality sheet glass, comparable to float glass. This will be the first instance where flat glass of such high quality will be made in the country, and it will provide Indian industry with a reliable domestic source of flat glass of high optical quality. The total cost of the project is estimated to be $40 million. The project sponsored by Window Glass Ltd. of Calcutta, will be located on a greenfield site at Govali, Bharuch District in the State of Gujarat. All raw materials are available in India, the bulk coming from the western region of which the State of Gujarat is a part. The project is expected to be completed in March, 1988 and to be operational by July, 1988. -MORE- -2- The Corning fusion process has been used to manufacture automotive windshields and specialty glasses such as pyrex, opthalmic glass, aircraft windshields and liquid crystal display glass, but in India it will be used to make only soda lime glass. The plant will be capable of simultaneously producing up to three different colors and/or thickness of glass and of changing any color and thickness in a substantially shorter time than required for the traditional float process thereby providing enhanced customer support at a low working capital cost. This is the first time the process has been licensed to a third party, and IFC assisted in negotiating the transfer of this technology to the Indian sponsor. Corning Glass will provide technical management support to the project for the first two years of operation. The new company, Gujarat Fusion Glass Ltd., will be owned by Window Glass Ltd. and associates (38.5 percent), Gujarat State Government (15 percent), the public (32.5 percent) and IFC (14 percent). Long-term loans totalling $26.7 will be provided by Indian financial institutions ($19.2 million) and the IFC ($7.5 million). IFC will also invest $1.8 million in the proposed total equity of $13.2 million. IFC, which has played a major role in this project by advising Indian financial institutions on the benefits of the fusion glass process and in assisting the sponsors in negotiating the tranfer of the technology, is the leading international private sector agency which provides equity financing and long-term loans without government guarantees to private enterprises in developing countries. -END- - 2 - des investissements dans les pays en développement désireux d'attirer des investissements étrangers et d'augmenter les flux de capitaux et de technologie, la SFI a récemment créé le Service-conseil pour l'investissement étranger qui est destiné à aider les Etats membres réviser et ajuster leur politique et stratégie pour attirer les investissements étrangers. La SF1 a également mis en place un mécanisme offrant une garantie de recouvrement sur l'apport des investisseurs étrangers, la GRIP (Guaranteed Recovery of Investment Principal). Les activités de son département Marchés financiers sont en train de se diversifier sensiblement, notamment pour aider les pays en développement dans leurs efforts pour lier leurs marchés des titres aux marchés des capitaux internationaux au moyen de fonds nationaux et d'émissions internationales d'actions et d'obligations. Pour ce qui est de l'Afrique, la SFI vient de lancer le Service de Promotion et de développement des investissements en Afrique qui permet aux entrepreneurs africains de préparer des projets bancables. Un autre service en préparation, le Service de Gestion pour les sociétés africaines devrait être mis en place d'ici la fin de l'année. De nombreuses sociétés et banques belges ont déjà été co-investisseurs dans les projets de la SFI, notamment en Afrique et au Moyen Orient. "Notre rôle est d'être un catalyseur et nous cherchons des investisseurs dans les pays industriels pour réaliser des projets rentables dans les pays en développement," a mentionné Sir William qui a ajouté, "la SFI désire établir des liens plus étendus avec les sociétés et les banques belges." Sir William recevra la presse au cours d'une conférence le lundi 16 mars à 15 heures au Centre international de presse, 1 Boulevard Charlemagne, Bruxelles.