CSR Limited announcedtoday that it is taking another step in its progressive expansion to supply therapidly growing market for insulation in South-East Asia.

The company has finalised arrangements to lease anexisting 6,000 tonnes per year capacity, glasswool insulation manufacturingplant in Nanning, capital of the Guangxi province in southern China. Production will begin almost immediately.

CSR is China’s second largest glasswool insulationmanufacturer. The new capacity will supply rapidly growing markets in southern China, and will help reinforce CSR’sstrong regional position in Asian insulation markets.

The Nanning plant will be operated in conjunction with CSR’s efficient glasswool factory in Zhuhai, in neighbouring Guandong province,100 kilometres west of Hong Kong. Constructed in 1995, CSR’s Zhuhai glasswool plant currently is producing 8,000 tonnes per year.

CSR is entering into a four year lease with Nanning GlassFactory to manage and operate the Nanning plant. Following completion of the lease, CSR will have the optioneither to extend the lease or buy the equipment for possible relocation to theZhuhai factory. The Nanning plantincludes equipment well known to CSR and will be operated by the existingmanagement team from Zhuhai.

“This lease gives us virtually immediate access toadditional capacity to meet the rapidly growing market for high quality,branded insulation products in China. It also strengthens our capacity to meet demand from wider Asianinsulation markets,” said CSR Managing Director and CEO Alec Brennan.

“This is a low-cost opportunity for us to increaseglasswool sales through our well established sales and distribution network inAsia. It will help to leverage ourposition in new markets in the region such as Vietnam and the Philippines,” MrBrennan said.

CSR is the largest manufacturer of insulation inAsia. In addition to its now twoglasswool insulation plants, CSR is also a major producer of rockwoolinsulation, with three rockwool factories: in Dongguan, southern China;Bangkok, Thailand; and Kuala Lumpur, Malaysia. In Asia, glasswool and rockwool insulation are sold mainly forcommercial and industrial construction and for use in manufacturing.

CSR also has a strong Asian network of insulationdistribution businesses, with outlets in Shanghai and Hong Kong, China;Singapore; Manila, the Philippines; and Ho Chi Minh City, Vietnam.

CSR knows the insulation business well, having been in theindustry for over 50 years and producing in Asia for 20 years. In Australia, its Bradford Insulation business is one ofthe leading manufacturers of glasswool insulation, the sole manufacturer ofrockwool insulation, and also manufactures reflective foil.