Owens Corning reports booming sales in China

By Nina Ying Sun
Assistant Managing Editor

Published: June 12, 2014 3:22 pm ET
Updated: June 16, 2014 12:23 pm ET

Image By: Owens Corning Corp. Yao Fangdi, Owens Corning composite solutions business China managing director

Related to this story

Topics Materials, Materials Suppliers, China
Companies & Associations Owens Corning

SHANGHAI — Even for a fast-growing market like China, 100 percent annual growth is an impressive number.

That’s the magic number for Owens Corning Corp.’s 2013 sales of long-fiber-reinforced-thermoplastic (LFT) products in China, according to Yao Fangdi, China managing director for Owens Corning's composite solutions business.

"We expect to double our LFT sales again this year,” he told Plastics News in an interview in the leading glass fiber supplier’s Shanghai office.

At Chinaplas, the company touted its Performax SE4849 roving for LFT-polypropylene, which offers opportunities to replace traditional metals in complex and often challenging structural and semi-structural automotive components.

China’s thermoplastic composite market is expanding by about 30 percent per annum, Yao estimated, while the overall composites market records a mere 3-5 percent annual growth.

As a main end-market for LFT, the automotive industry in China continues to deliver strong growth. The industry’s expanded efforts in weight reduction, fueled by the public’s rising concern of air pollution, are helping thermoplastic composites to speed up market penetration.

An average car today uses at least 10 kilograms of LFT materials, Yao said. But a high-end car can contain four times, as the market adapts quickly to using the material in structural components.

Having established production in China since 2007, Owens Corning currently has the capacity to serve local customers’ needs from plants in Yuhang (Zhejiang province) and Doudian (Beijing).

Like many other industries in China, the glass fiber industry has also been suffering from overcapacity, which leads to lower prices and inventory buildup.

Capacity expansion has slowed down, and some plants are being renovated, which decreases output for the time being, Yao said.

The key issue is to adjust and rationalize the existing capacity, converting thermoset composite capacity to thermoplastic composite capacity, he added. At present, Owens Corning is the only profitable glass fiber maker in China, he claimed.

The company’s China R&D has been focusing on application development and localization. “Our team here serves to meet customers’ specific needs by tailoring materials as well as helping them with the process,” Yao said.

Some global customer actually exports LFT parts that are made in China to Europe.

The Asia Pacific region will continue to be the growth driver of the global composite market, he noted.


Comments

Owens Corning reports booming sales in China

By Nina Ying Sun
Assistant Managing Editor

Published: June 12, 2014 3:22 pm ET
Updated: June 16, 2014 12:23 pm ET

Post Your Comments


Back to story


More stories

Image

Ineos to combine ABS unit with Styrolution in Americas

March 4, 2015 10:03 am ET

Global materials firm Ineos Group will combine its ABS resin business with its Styrolution unit in the Americas.    More

Image

Obituary: Guido Ghisolfi, PET company executive

March 4, 2015 9:47 am ET

Guido Ghisolfi — a top executive with global PET resin leader Mossi & Ghisolfi Group — has died from an apparent suicide.    More

Image

Bayer to stop MDI production in Brazil

March 4, 2015 9:21 am ET

Bayer AG's Bayer MaterialScience plans to stop production of MDI polyurethane at its plant near Rio de Janeiro in July, removing 55 metric tons per...    More

Image

Best Places To Work: No. 3, Sun Plastech Inc.

March 3, 2015 2:25 pm ET

Sun Plastech Inc., No. 3 on Plastics News' Best Places to Work ranking, offers so many interesting benefits and perks, it's hard to know where to...    More

Image

Bayer expands with acquisition of Germany's Thermoplast Composite

March 3, 2015 10:59 am ET

Bayer AG's Bayer MaterialScience LLC has bought composite materials specialist Thermoplast Composite GmbH based near Nuremberg, Germany.    More

Market Reports

Flexible Packaging Trends in North America

North America represents about 30 percent of the global consumption of flexible packaging. Annual growth in this region is forecast at 4 percent during the next 5 years.

For more insight on growth opportunities, drivers of growth and the outlook for 2015, download this report.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 billion plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Upcoming Plastics News Events

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events