AGC announced it plans to invest approximately 16 billion Japanese yen (approximately $152.6 million USD) to PT Asahimas Flat Glass Tbk (AMG), one of AGC’s consolidated subsidiaries in Indonesia, and will set up a new float glass furnace there to replace a float furnace at the Jakarta Plant.

The new furnace will be constructed adjacent to AMG’s Cikampek Plant, an automotive glass fabrication plant. Mass production is scheduled to start in the third quarter of 2016, according to the company.

With a 40 percent increase in the production capacity, AGC says the new furnace will significantly enhance AMG’s float glass production. AMG currently has two float glass furnaces, each at its Jakarta Plant and Sidoarjo Plant, 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,” a release from the company reads. “The construction of a new furnace is intended to achieve a competitive production framework to meet the growing demand in the region. Also, the enhanced production will help AMG to accommodate the latest changes in Jakarta city master plan, which will change the existing industrial area to become commercial use in the near future.”