(Yicai) Jan. 26 -- Chinese automotive glass giant Fuyao Glass Industry Group has unveiled its second capacity expansion plan in less than one month, given the rapid growth of the local new energy vehicle industry.

Fuyao Glass will invest a total of CNY5.8 billion (USD804 million) to build a new plant with an annual production capacity of 2,610 million square meters of automotive glass and two high-quality float glass production lines in Hefei, China’s eastern Anhui province, the Fuqing-based company announced yesterday, without revealing the production capacity of the float glass production facility.

In recent years, Hefei and its neighboring cities have attracted many automakers, including Chinese electric vehicle giant BYD and German car manufacturer Volkswagen, which are forming a NEV supply chain ecosystem, Fuyao Glass noted.

The project will help the company enhance its cooperation with customers while ensuring the sustained and stable supply of upstream raw materials, Fuyao Glass added.

On Dec. 30, Fuyao Glass announced it would invest CNY3.3 billion to build a plant with an annual production capacity of over 20.5 million sqm of automotive glass in its home city of Fuqing in Fujian province to meet the demand of global automotive markets.

Fuyao Glass’ automotive glass and float glass production capacities reached 131 million sqm and 1.7 million tons, respectively, in 2022, according to the company’s latest annual report. Therefore, the production capacity of the Fuqing and Hefei plants will equal about 35 percent of Fuyao Glass’ total capacity of automotive glass.

Fuyao Glass has a share of 60 percent of the Chinese automotive glass market and over 30 percent of the global market. Documentary American Factory about Fuyao Glass’ actual controller Cao Dewang investing in a glass factory in Ohio, the US, won the Academy Award for Best Documentary Feature at the 92nd Academy Awards in 2019.

Fuyao Glass [SHA: 600660] closed up 2.19 percent at CNY38.30 (USD5.36) in Shanghai today. The firm’s Hong Kong-listed stock [HKG: 3606] closed down 0.83 percent at HKD35.7 (USD4.57).

Editor: Futura Costaglione