China Glass Holdings entered into a joint venture with its shareholder, Hony Group Management, to create a fund that will invest in glass factories located in countries included in the Belt and Road Initiative. The Initiative is an economic strategy proposed by the Chinese government that encourages economic cooperation with Eurasian countries, with a focus on development in areas such as infrastructure and construction materials.
“The group has been actively seeking to expand its glass production businesses outside [China] to leverage on the advantages and opportunities resulting from the Belt and Road Initiative,” say representatives from China Glass.
Hony Group will invest almost $300 million in the fund, owning 95 percent. The joint venture, which will be a ‘general partner,’ will represent a 5 percent stake and plans to manage the new fund.
