62684
                                                                              LONG-TERM PARTNERSHIPS WITH EMERGING PLAYERS




                                             China Glass: The Business Case
                                             Energy Efficiency has big rewards
China Glass Holdings Limited (“China Glass” or the “Company”), a leader in the Chinese glass market, is, in cooperation with
IFC, implementing energy efficiency improvements to reduce costs and increase profitability. In 2008, IFC provided a US$30
million loan for a US$45 million project to help China Glass enhance its energy and water efficiency and reduce emissions, and
develop coated glass products that reduce energy use in buildings. The introduction of modern furnace technology, on-site
electricity generation using waste heat, and water recycling decreases manufacturing costs by over $4 million/year.

Currently, China Glass is the second largest glass manufacturer in China and one of the most efficient manufacturers of flat
glass in the country. It operates a total of 14 glass furnaces in five provinces in China and now has 16 lines with a daily melting
capacity of 5,830 tons per day. The Company is a key consolidator in the Chinese glass industry, being formed from the
acquisition and consolidation of eight state-owned glass manufacturers in 2004-2007.


                                                                             This IFC-supported project will enable China Glass to do the following:

                                                                                   implement cold repairs at three furnaces to improve energy
                                                                                   efficiency
                                                                                   incorporate secondary control of furnace emissions;
                                                                                   install a 3 MW waste heat recovery power generation system to
                                                                                   reduce energy purchases from the grid;
                                                                                   build a water recycling system to conserve water;
                                                                                   relocate a furnace from the city center to an industrial estate to
                                                                                   reduce city pollution;
                                                                                   diversify into higher-quality and coated glass products.


Climate change benefits and cost savings
     Manufacturing costs to be reduced by over US$4 million/year.
     Expected annual greenhouse gas emissions of China Glass will be reduced by over 22,000 tonnes.
     This is one of the first installations of waste heat recovery systems for electricity generation in the glass industry in China.
     Implementation of pollution controls also makes the Company one of the first glass manufacturers worldwide using such technology.
     China Glass is an early adopter of air emissions controls needed to meet new and demanding Chinese standards.
     The completed line is now the most profitable of China Glass’ 14 lines.


IFC Role
This was the second project IFC financed for China Glass. Following the first engagement, IFC helped China Glass ownership become aware
of the relatively low levels of energy efficiency at several sites and the business opportunity that energy efficiency improvements presented
to the Company. Further discussions between the IFC team and China Glass on energy efficiency led to this second project, through which
China Glass is expected to become a more competitive player in its market and a role model for other glass manufacturers in this energy-
intensive industry.

                  For more information about IFC’s financial products and advisory services in the glass sector, please contact:
                         Eric Siew 1-202-458-9625 or esiew@ifc.org, Georges Zahar 1-202-473-7098 or gzahar@ifc.org
                                                  Volker Haeusler 1-202-458-8765 or ghaeusler@ifc.org


Printed on material that meets international
environmental standards and is from sustainably
managed commercial forests
ifc.org                                                               2009