Feasibility Study of Establishing a Float Glass Factory
Abstract:
Glass, as a widespread product, has various applications in industries such as constructions, food,
home appliances, automotive, pharmaceutical and laboratories.
As reports show, float glass production capacity in Iran is around 500 thousand square meters per
day. Accordingly, 40 percent is exported to Persian Gulf, Central Asia and European countries.
Iran’s Exchange relations with Europe, neighboring with Turkey, accessing a large Geographic
area, the completion of two-year airport construction which has resulted in having transportation
facilities, export terminals, financial services and other transportation facilities have attracted
attentions for investment in this region.
Furthermore, other advantages of investing would be the existing facilities to build greenhouse
complexes, investment in the packaging industries and supplemental processing industries and
regions nonmetals mineral resources. Moreover, the capacity of industrial development based on
the supply chain in neighboring countries, especially turkey, 20-year tax exemption from all
activities and unrestricted partnership with foreign investors, 100% foreign investment,
exemption from customs duties to import raw materials and machinery and government’s
guarantee on foreign investment would all be advantages of investment in this region.
There are 10 glass factories in Iran with nominal capacity of 1.2 Million tons that 7 of them
produce float glass.(Yazd, Qazvin, Zanjan, west-Azerbaijan, Maragheh, and two factories in
Kaveh industrial city in Saveh County).
Float glass is a glass sheet made of floating molten glass which is commonly used in automotive
industry.
The global market (export) is the target market for float glass plants in Iran. In addition, tax
exemptions and incentives in Free Zones can help to improve this industry.
Advantages of Establishing a Float Glass Factory in Maku:
Inexpensive energy costs and workforce, proximity to silica mines (6-million-ton capacity) and
high demands from Turkey and Iraq has made Maku Free Zone an inviting place for establishing
a float glass factory in order to export float glass to Iraq, Turkey and CIS countries. Reports
show that Iraq, Afghanistan and Turkey have been top importers of Iran’s float glass in recent
years.
Float Glass factory can play an important role in economy development, smuggling prevention,
job opportunities creation and domestic production enhancement. Also, proximity to Turkey , Armenia and Azerbaijan as the main customers, as well as proximity to raw materials and target market is among the advantages of establishing a float glass factory in Maku Free Zone.
Maku Free Zone has become an inviting region for investment due to geographical location
(proximity to Turkey and CIS countries) on the East-West corridor and proximity to the
European market, easy and quick access to European and Central Asian markets, connections
with Caspian littoral states, high volume of goods exchange, existence of the largest and most
important land customs station between Iran and Turkey (Bazargan), a 20-year tax exemption for
all activities, proper situation for joint ventures, exemption from customs duties to import raw
materials and machinery and after all, full guarantee on foreign capital by the government
according to the law of attracting and protecting foreign investment.
Advantages of Investment in Free Zones:
- 20-year tax exemption according to Free Zones law
- Visa-Free region
- Unlimited currency exchange and money transfer to other Free Zones and cities
- 100% ownership for foreign investors
- customs duties exemption for exporting products
- Easy company registration
- Free access to investment capital transfer into or out of the country
Export is the main goal for establishing a float glass factory in this region regarding the high
demands of neighboring countries and low production costs in Iran. As the production costs for
glass production in Iran are lower than the world, many countries such as Afghanistan, Pakistan,
Oman, Iraq, Turkey, and Georgia are willing to supply their needs from Iran.
The most profitable products in glass industry are different kinds of glasses like: reflex,
decorative, laminated, satin, safety, bulletproof, and mirror glasses. Actually, some of them are
more valuable than normal glass, so indeed they are much more expensive and more profitable.
Thereupon, it is highly recommended to invest on glass related industries.
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