The large US glass fibre manufacturer Owens Corning, currently aiming at building up its sales abroad, said in July that prospects for growth in Africa were very good.
Glen Hiner, Chairman and CEO, s…
The large US glass fibre manufacturer Owens Corning, currently aiming at building up its sales abroad, said in July that prospects for growth in Africa were very good. Glen Hiner, Chairman and CEO, said: “We believe the prospects for growth are excellent in Africa. We are encouraged by the stabilisation we see being achieved, and we are encouraged by the new environment for business that we see developing.” Mr. Hiner was recently in the Zimbabwean capital to attend an African/African American summit of political and business leaders. He said his company was in negotiations with the Matabeleland Zambezi Water Trust to build a US$ 10 million factory for large-diameter piping in Zimbabwe, near the city of Bulawayo. A formal agreement is due before the end of the year and plant construction will take 10-12 months. Owens Corning started its first African business in 1993 with a factory in Botswana and moved into South Africa last year by taking a majority stake in the former Acoustical Fibreglass Products operation, since renamed Owens Corning SA. It now employs about 800 people in Africa. In Botswana, Owens Corning is supplying 250 km of piping for the country“s US$ 330 million North-South carrier pipeline. It has also secured orders for Africa-produced products from Zimbabwe, Namibia, Botswana, South Africa, Swaziland and Zambia worth a total of US$ 110 million. Mr. Hiner said the company is interested in further strengthening its base in sub-Saharan Africa, which is so prone to droughts. Thus he wants to focus on the water, sewer and irrigation projects. He said: “Thus far we“re satisfied with the results we“ve generated and what we“ve been able to do. Our total revenues for next year (1998) will be about US$ 80 million in all of our operations in Africa and we are looking at a double-digit compound growth rate going forward over five years, that“s the horizon we have.” To attain its goal of US$ 5 billion in sales by 1999, the company (which recently paid its first dividend after a 10-year break) has accelerated its foreign expansion efforts all over the world, making acquisitions to widen its product line or gain access to new markets. Joint ventures and factory construction have also helped add manufacturing capacity. For example, facilities for the production of Advantex , the boron-free glass fibre which is resistant to heat and corrosion, are being established in plants throughout the world.