Owens Corning to expand to western China

Glass fiber maker Owens Corning is working on a strategy to extend its business from China's coastal areas into western regions.

Mike Thaman, chairman and chief executive officer of the company, said that Owens Corning will make significant investments in western regions to establish more facilities to produce building materials.

"China's west is a vast market which is worth our investment," said Thaman. "But specific plans for western projects are waiting to reach a commitment level that it is appropriate to be announced," he said.

Insiders said Owens Corning has set up eight plants along the country's coastal cities, but more facilities are needed in the west to provide convenient and low-cost building materials for local customers.

Owens Corning has launched a glass cotton material project in Xi'an, Shaanxi province, with an investment of $20 million as its first step into the western market.

The project, scheduled to start operations early next year, will produce an innovative thermal insulation material, with an advanced energy-saving technology from the United States.

"Our future investments in the west will be placed on expanding capacity as well as on technology innovation," said Thaman.

China is an important market for the company. It accounted for about 8 percent of Owens Corning's composites business in 2011.

"Despite the recent slowdown, we still see China as an attractive market with rapid growth potential," Thaman said, adding that China represents about 24 percent of the global glass fiber market, and that Owens Corning's growth outlook is in line with industry-reported growth rates.

Thaman said the company has seen big opportunities for the composites business in markets such as vehicles, high-pressure pipes, CNG tanks, wind energy and ceiling tiles.