Indonesia’s largest-glass producer Asahimas Flat Glass could increase its capital expenditure by 20% due to an anticipated increase in demand for glass.

Rusli Pranadi, Asahimas’s corporate secretary, said the company would spend $30 million next year, up from $25 million this year, for upgrades and maintenance of its furnace in its East Java factory.

“The cost will be around $22 million,” Rusli said on Friday, adding that the rest of the capital would be spent on regular investments.

Tjahjana Setiadhi, Asahimas’s vice-president director, said the company was in talks with Japanese car manufacturers Toyota and Daihatsu to supply glass for their new low-cost cars designed for the Indonesian market.

Asahimas has a 40% share of the domestic glass market. About 75% of its sales last year was for flat glass for buildings, while the rest was for glass for vehicles. It exported 39% of its production, while the rest was sold on the domestic market.