Owens Corning Announces Strategic Cooperation & Supply Agreement with CPIC
Owens Corning (NYSE: OC) announced today that it has entered into a Strategic Cooperation and Supply Agreement with Chongqing Polycomp International Corp. (CPIC) for joint investment in technology, and construction and operation by CPIC of a new facility dedicated to the manufacture of high-modulus glass fiber products in China.
“This agreement positions two leading players in the wind industry to deliver the most advanced glass fiber technologies to serve growing industry demand for high-modulus glass,” said Marcio Sandri, President of Owens Corning’s Composites business. “The combination of innovative glass technology, enhanced quality and efficiency, and large-scale volumes will be beneficial to our respective customers. Wind energy is a key strategic market for Owens Corning representing a major platform for our growth in China – and globally.”
Global demand for high-modulus glass fiber products is expected to grow in the coming years. This high-performance glass fiber product enables the construction of longer, stronger, and lighter wind blades, which is critical to enhancing the competitiveness of wind energy and proliferating the use of composites in supporting alternative energy applications.
Wenxue Zhang, Chairman of CPIC said, “Being leaders in the wind industry, especially in high-modulus products, OC and CPIC both have advantages in products, technology and talents. With this agreement, both parties will closely cooperate using the most advanced technology, equipment and management systems to build the world’s largest operation of its kind. This strategic cooperation will drive industry growth and deliver complementary advantages for both companies.”
The new facility will be located in Chongqing, China. Expected to be operational by mid-2019, the facility will include a glass furnace with annual production capacity of 110,000 metric tons.
The agreement is focused within China, which represents the world’s largest market for wind energy and is particularly well-suited for this large-scale capacity investment. While Owens Corning and CPIC will work together to enhance quality and efficiency at the manufacturing operation, the companies will maintain independent commercial operations and continue to provide their respective product offerings to customers through separate commercial channels.
The agreement with CPIC is consistent with Owens Corning’s strategy to meet market growth with competitive products and reduced capital investments. The company is selectively leveraging its technology and internal capacity while also taking advantage of external assets to deliver Owens Corning products – tested using the company’s quality systems and meeting the same specifications as its owned operations.
“We look forward to working with CPIC and building on this opportunity to advance composites technology and deliver on the needs of our customers,” Sandri added.