The Jushi Group, which is wholly owned by China Glass Fiber (600176), has an overseas expansion strategy that can be described as an immediate success. China Fiberglass today disclosed that its subsidiary, Jushi Group Co., Ltd., plans to set up a giant stone Egyptian Glass Fiber Co., Ltd. and build an 80,000-ton glass fiber tank furnace drawing production line project. Jushi Egypt has registered capital of 67 million U.S. dollars and the total investment of the project is 223 million U.S. dollars.

According to the announcement, China Fiberglass plans to build glass fiber production lines in emerging market countries such as Egypt in order to speed up the construction of a global industrial layout and avoid international trade protectionism. After full investigation, demonstration, field investigation and comparative analysis, China Glass Fiber believes that Egypt has advantages in terms of political environment, economic environment and resources, and is suitable for investment and establishment of factories. Therefore, Jushi Group plans to set up a giant stone Egypt in Egypt's Suez economic and trade cooperation zone, and build an 80,000 tons of alkali-free fiberglass tank furnace drawing production line. The project is planned to start construction in 2011, with a construction period of 15 months. It is estimated that after the project is completed and put into production, the annual sales income will be 554 million yuan and the total annual profit will be 202 million yuan.

China Glass Fiber said that after the completion of the project, it will further improve the global industrial layout, effectively mitigate the impact of anti-dumping on the company, and make full use of foreign policy and resource advantages to improve its international influence. As the world's leading fiberglass manufacturer, China Glass Fiber has set up more than 10 production and trade overseas companies such as Boulders South Africa, France, Italy, Canada, Spain, and India, and has a global sales network. However, China Glass Fiber expands overseas. At the same time, it also faces the impact of foreign anti-dumping on the company's exports. At the beginning of this year, the EU, Turkey and India finalized the anti-dumping investigation of China's glass fiber products. The EU announced that it imposed a 13.8% anti-dumping duty on some Chinese glass fiber exporting companies' related products for export, and Turkey’s involvement in China’s glass fiber exports was involved. The product levies 23.75% of anti-dumping duties.

China Glass Fiber also disclosed that in order to supplement its working capital and reduce its cost, Jushi Group plans to issue short-term vouchers for 2011 to 2014, and the total issuance amount will not exceed 1.4 billion yuan. The interest rate is determined in a market-oriented manner in accordance with the "Measures for the Administration of Non-financial Corporate Debt Instruments in the Interbank Bond Market". In addition, Jushi Group intends to control US GIBSON Corporation by acquiring 100% equity of Faithrich Enterprises Limited, the sole shareholder of GIBSON, its sole US agent, and plans to set the purchase price at US$18 million.