Research Notes

Borsky Glass Plant is a large glass products manufacturer in Russia that is a subsidiary unit of Glaverbel, the world’s biggest player on the float glass market. Hi-tech production, strong positions of the company on the sheet glass market, as well as product diversification, make Borsky Glass Plant one of the most attractive assets on the glass market.

Major factors of the company’s investment appeal are:

Growing domestic demand for goods manufactured by the glass industry driven by faster construction of housing and commercial real estate, which consume more than 72% of float glass.

Development of the Russian automotive industry and also plans to roll out auto assembly plants in Russia by foreign auto producers. Given BGP’s strong positions on the auto glass market, the company stands a good chance of becoming one of the primary suppliers of glass products to new automotive concerns.

BGP’s margins are among the strongest in the sector, which, along with sizeable production facilities makes the plant one of the most attractive assets for portfolio investments in the Russian growing glass industry. As forecast by the Glass Union, float glass output could reach around 300 mln sq m by 2010 in Russia.

BGP’s investment program that calls for upgrading and expanding the company’s production facilities, diversifying the product mix and also manufacturing higher value added products is capable of pushing up the company’s margins.

Clients of Finam Investment Company may receive full versions of analytical research reports translated into English by sending requests to the International Trading Department.

Sergey Filchenkov

* Short overviews of equity research reports and sector reports are posted on the website http://www.finamrus.com with a 1-day delay after their full versions are emailed to the company’s clients. To get overviews on the day of their release, please contact your manager at Finam to sign up for full versions of research reports.