Glass manufacturer Asahi has announced plans to build a new facility for the production of non-alkali glass substrates for Thin Film Transistor Liquid Crystal Displays (TFT LCD) panels in response to growing demand.

Asahi says that it will ramp up production of the LCDs by constructing an additional glass furnace for large glass substrates at its Takasago Plant.

A 14 billion yen investment will yield an annual production capacity of four million square metres of glass, with construction on the project set to commence in October 2004. It is hoped full commercial production will begin in October 2005.

Yoshihiko Saito, an Asahi Glass spokesman, told Bloomberg that the new facility was an indicator of wider rising demand.

"The demand for large glass sheets will continue to exceed supply as most manufacturers start production next year," he explained.

Upon completion of the new plant Asahi's total production capacity will stand at 22 million square metres of glass per annum.

Growth is expected to be driven largely by the need for PC monitors, with demand for TVs also set to soar.