Nippon Electric Glass: Withdrawal from US glass fiber production

Research evidence excerpt

Nippon Electric Glass: Withdrawal from US glass fiber production

Global Markets Research

7 July 2026Nippon Electric Glass

5214.T 5214 JP / EQUITY: JAPAN GLASS, CEMENT & CERAMICS

RatingWithdrawal from US glass fiber production Neutral

Target price JPY 6,430Quick Note

Closing price

6 July 2026 JPY 6,319Working to improve earnings by withdrawing from glass fiber production in US

On 6 July, Nippon Electric Glass announced its withdrawal from glass fiber production in (Note: Quick Note reports are not a

the US. It plans to halt production at its Shelby plant in North Carolina (at the end of vehicle for changes to ratings, target

August 2026) and to sell its Lexington plant (at the end of July 2026). These two plants prices, or earnings forecasts)

had been producing glass fiber used to reinforce plastics and to produce housing

materials, but earnings had been weak in recent years because of fiercer competition with

Chinese rivals. The US glass fiber business generated sales of $237mn and operating

losses of $6mn in 25/12. The company also manufactures glass fiber in Japan and Research Analysts

Malaysia, and we estimate that its glass fiber business overall generated sales of just

Japan glass, cement, paper & pulpunder ¥100bn in 25/12. We expect sales to fall but losses to disappear as the company

Takaomi Kono - NSCwithdraws from glass fiber production in the US and takes steps to deal with products that

takaomi.kono@nomura.com

have become less competitive. +81 3 6703 1207

Aiming to increase sales of fiber products with high added value for use in

semiconductor applications

Management is aiming to increase sales of glass fiber products for use in semiconductor

applications, which have higher added value. Shipments of low-dielectric glass (D2 glass)