Asahi Glass Co (AGC) will invest in a new auto glass plant in China, with a total investment valued at $46m.

AGC’s subsidiary AGC Flat Glass (Suzhou) will convert its current plant, which produces photovoltaic cover glass, into a factory for producing auto glass.

The demand for automotive glass in China is currently estimated to grow at a rate of 5% every year, with over 20 million units produced in 2013.

The new automotive glass plant will be the third of its kind in China, and will have an annual capacity to equip nearly 1.2 million vehicles, increasing AGC's total capacity in China to about 3.6 million vehicles.