Guardian Glass Investments, S.A., of Luxembourg, a wholly owned subsidiary of Guardian Industries Corporation of the United States, was issued $10 million in MIGA coverage against the risk of war and civil disturbance for its $14.6 million equity investment in a float glass manufacturing facility in Saudi Arabia. The project enterprise, SaudiGuardian International Float Glass Co., Ltd., is located about 200 miles northeast of Riyadh and is a joint venture with two Saudi companies. It is expected to have a gross melting capacity of 450 metric tons a day. The output will be sold domestically as well as in neighboring countries.
The project will be the first local producer of float glass, which is currently imported from Asia, Europe, and the United States. About $20 million in net foreign exchange will be realized annually for Saudi Arabia from import substitution and exports outside the Gulf region. The project will benefit downstream glass fabricators by providing high-quality glass at competitive prices, creating several hundred additional jobs in related industries such as mirror and window manufacturing. Much of the raw materials used by the project will be procured in Saudi Arabia, facilitating the growth of local suppliers. The enterprise will provide local staff with technical training in the operation of float glass plants as well as housing, food, and medical and insurance benefits. A major portion of the broken glass generated by the operation will be recycled.