Nippon Electric Glass Co. said Friday it has established a new subsidiary in China to expand its output of glass bulbs for cathode-ray tubes.
Nippon Electric Glass (Fujian) Co., located in Fuzhou, Fujian province, will handle growing demand for the product in China. The wholly owned subsidiary will invest about 14 billion yen to produce CRT bulbs at an annual rate of 6.5 million units beginning March 2004.
Nippon Electric Glass said part of its domestic production will be shifted to the planned factory, reflecting sluggish demand in Japan.
The company expects sales of about 4.5 billion yen from the new Chinese operation in the first year, rising to about 7 billion yen in the second year.
Nippon Electric Glass already has two CRT glass factories in China -- one in Fujian Province and the other in Hebei Province.