At a recent press conference, the President of Owens Corning Composites, Heinz-J Otto, discussed Owens Corning“s desire to encourage market growth.
“One year ago the issue the composites market was …
At a recent press conference, the President of Owens Corning Composites, Heinz-J Otto, discussed Owens Corning“s desire to encourage market growth. “One year ago the issue the composites market was facing was where to get glass to meet demand,” said Mr. Otto. “Now the issue that is foremost on the minds of the Composites industry is how to grow the market.” Otto explained that demand for glass fibre in Europe was greater than supply in 1994 through to the first half of 1996. He said that then weakening demand and stock adjustments had led to a weaker third and fourth quarter in 1996. Customers experienced shortages in the past, which impacted growth and the ability to compete. “Now, European demand has stabilised. Inventories are back to normal and the other indicators show that the market is on an upswing,” explained Otto. He said that because there is sufficient availability of glass fibres to meet demand, prices have come under pressure and that now there is a risk that if margins decline, there could be a situation where it will not be feasible to sustain the required level of reinivestments. To meet the demands of this capital intensive industry, Owens Corning is currently spending around US$ 100 million a year to maintain and modernise its composites facilities. In conclusion, Otto stated that by working with customers, Owens Corning needs to focus efforts on growing the market as the only longer term solution to achieve price stability and the right level of inventories throughout the supply chain which together would help ensure adequate capacity to meet demand.