US-based Owens Corning Inc., a producer of fibreglass insulation chiefly for the residential market, said its business was unaffected by the threat of a continuing rise in interest rates.
The Toledo,…
US-based Owens Corning Inc., a producer of fibreglass insulation chiefly for the residential market, said its business was unaffected by the threat of a continuing rise in interest rates. The Toledo, Ohio-based company, best known for its trademark Pink Panther insulation, said at a recent press conference in New York that its remodelling and repair market were unaffected by possible rate hikes. “Everybody says the sky is falling but for us it is getting better,” said Glen Hiner, chief executive officer at Owens Corning. “The lack of labour in the construction industry and the drop-off in new construction is helping the remodelling market. The demand for building products remains strong,” he added. Owens Corning reaffirmed that it sees strong operating results through the rest of 1999. Recognizing growth opportunities in the US as well as other markets, the multinational company reached out to Canada-based IKO Industries and announced a joint venture for a new glass fibre mat facility. In a recent company press release, Owens said the venture will make wet-formed glass fibre mat used for roofing shingles. The facility will be operational by early 2001 in an undetermined North American location. Owens Corning“s existing glass fibre mat lines in Aiken, South Carolina, and Ft. Smith, Arkansas, will operate independently of the venture. Though valuing joint ventures, Owens Corning has no immediate plans for acquisitions. “We put our quest for acquisitions on hold and don“t expect to be back before 2001,” said Hiner. Owens Corning introduced its system thinking strategy in 1996, an approach that links products, technology and support rather than selling individual products without integration. Based on this system, the company predicts double-digit growth rates in sales and income from operations over the next five years and expects to become an US$ 8 billion company by 2004. Aside from its buildings products business, Owens Corning also runs a composites business, targeting industries like building materials, automotive and electronics/communications.