Affected by both sharply reduced product prices and oversupply, Luoyang Glass Co., a mainland China float glass maker, has reported net losses in 1997 of 223.44m yuan (around $27m). The float glass maker saw a sharp decrease in the second half, against its interim losses of 45.11m yuan. The president and general manager Guo Xiaohuan said, "I was shocked by the massive losses" - he followed "We had initially insisted on not cutting prices but were forced to follow to avoid inventories, as prices kept falling all the time." He added that the company's target was to trim losses this year. Last year, the mainland's glass production exceeded 168m cases, but demand was only for 140m, causing the average selling price for each case to drop 24.2%. The price has tumbled 97.32% since 1994 when the company was listed.
