China's stronger flat glass manufacturers are being urged to merge and acquire rivals while the domestic industry faces excess production capacity. The National development & Reform Commission said that the current situation of fierce competition and overcapacity provides an opportunity for stronger local companies to expand through mergers and acquisitions at low cost. The Commission reported that the industry should try to form more than 10 large scale enterprises during the 11th five year plan. It also said it will control new expansion in production capacity in the Eastern coastal parts of China where production is concentrated. Annual overall output capacity may be capped at 27.5m/tonnes, between 2006-2010. China's flat glass output in 2006 was 19.4M/tonnes, according to the China Architecture and Industrial Glass Association.
