Nippon Electric Glass (5214): Decides to end manufacturing at US glass fiber subsidiary

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Nippon Electric Glass (5214): Decides to end manufacturing at US glass fiber subsidiary

J P M O R G A N Asia Pacific Equity Research

07 July 2026

Nippon Electric Glass (5214) Overweight

5214.T, 5214 JP

Decides to end manufacturing at US glass fiber Price (06 Jul 26):¥6,319

subsidiary Price Target (Dec-26):¥7,300

Nippon Electric Glass (NEG) announced at 18:20 JST on July 6 that it will suspend Japan Equity Research

production activities at Electric Glass Fiber America (EGFA), a wholly owned sub-

Technology - Semiconductor/

subsidiary that manufactures glass fiber in the US. Of its two plants, the company Technical Materials

plans to sell the smaller Lexington plant to Saint-Gobain Adfors America by end- AC Mio Shikanai

July and suspend production at the Shelby plant by end-August. Management says

(81-3) 6736 1313

the earnings impact of the former should be minimal, while that of the latter is under mio.shikanai@jpmorgan.com

review. The company intends to maintain a sales office in Chicago and continue to Junya Ayada

sell small volumes in the US via imports from other plants but will no longer (81-3) 6736 8631

manufacture products in the US. In FY2025, EGFA generated sales of $237 million junya.ayada@jpmorgan.com

and an operating loss of $6 million. We like the further progress on restructuring JPMorgan Securities Japan Co., Ltd.

of the glass fiber business, which has been unprofitable at the operating level. We

expect the focus to shift to making the Malaysia plant profitable again and

improving profitability through increased shipments for electronic applications by

the Japan plant.

• Earnings impact: NEG’s FY2025 consolidated sales were ¥311.4 billion and

operating profit ¥34.1 billion, of which we estimate the glass fiber business