(Yicai) March 19 -- Shares of Fuyao Glass Industry Group fell after the world's largest supplier of automotive glass said it plans to invest USD400 million to expand the production capacity of its float glass factory in Decatur, Illinois.

After tumbling by as much as 6.1 percent in Shanghai earlier today, Fuyao Glass [SHA: 600660] finished 4.9 percent lower at CNY57.51 (USD7.95) a share. Its Hong Kong-listed stock [HKG: 3606] lost 4.2 percent to close at HKD56.35 (USD7.25).

The new production line at the Decatur plant is intended to meet the demand for high-quality float glass at Fuyao Glass’ auto glass factory in the US, safeguard raw material supply, and reduce costs, the Fuqing-based company said late yesterday, without disclosing any further details.

The Decatur factory has an annual production capacity of 280,000 tons of premium auto-grade float glass and can make photovoltaic backsheets, Fuyao Glass said previously.

Founded in 1987 by Chinese entrepreneur Cao Dewang, Fuyao Glass has become a global glass manufacturing giant. In 2014, the company acquired General Motors' former plant in Moraine, Ohio, investing USD600 million to rebuild and relaunch the facility. With over 2,500 local employees, it became the world's largest auto glass production site.

The Ohio plant gained international recognition as the focus of the 2019 documentary American Factory, which explored the challenges and cultural dynamics of the factory’s revival. The film won the Academy Award for Best Documentary Feature the following year.

Fuyao Glass has factories and research and development centers in Ohio, Illinois, and Michigan. Last year, the firm’s net profit from the US market was US88 million on revenue of around USD887 million, its earnings report showed yesterday.

Total net profit at Fuyao Glass surged 32 percent to CNY7.5 billion (USD1 billion) in 2024, while revenue jumped 18.4 percent to CNY39.3 billion (USD5.4 billion), with overseas markets accounting for 45 percent of the total. Operating cash flow rose 12.3 percent to CNY8.6 billion.

The company’s auto glass sales climbed 11.2 percent to 156 million square meters, with related income jumping 19.5 percent to CNY35.7 billion (USD4.9 billion).

Fuyao Glass also announced an annual cash dividend of CNY1.80 (25 US cents) per share for a total payment to shareholders of about CNY4.7 billion.

Editor: Martin Kadiev