Asahi Glass (AGC) is to invest approximately JPY16bn (US$152.6m) in Asahimas Flat Glass (AMG), one of AGC's consolidated subsidiaries in Indonesia.
The money will be spent on setting up a float glass furnace in Cikampek, Java, to replace one at the Jakarta plant.
Full production is scheduled to start in the third quarter of 2016 and the new furnace will be constructed adjacent to AMG's automotive glass fabrication unit in Cikampek.
With a 40% increase in production capacity, the new furnace will significantly enhance AMG's float glass production.
AMG currently has two float glass furnaces each in Jakarta and Sidoarjo (with total production capacity of 570,000 tonnes a year) for the production of float glass used for architectural and automotive applications.
Demand for architectural glass and automotive glass in Indonesia is expected to keep growing against the backdrop of the country's steady economic growth.
The construction of a new furnace is intended to achieve a competitive production framework to meet the growing demand in the region.