Building products giant Owens Corning has launched a review of its vinyl siding and Fabwel business units, sparking speculation that the Toledo, Ohio-based company could soon offload its vinyl siding business.
A sale would be the latest in a recent string of high-profile transactions in vinyl siding, including Montreal-based Kaycan Ltd.'s purchase of Nashville, Tenn.-based Louisiana-Pacific Corp.'s siding unit; and Kearney, Mo.-based Ply Gem Industries Inc. acquiring Alcoa Home Exteriors in Pittsburgh.
``The siding market really probably peaked about a decade ago,'' said Mike Thaman, Owens Corning's chairman and chief financial officer, in a conference call.
Vinyl siding has been losing some market share in the exterior cladding market, Thaman said.
``We've seen siding, the industry, going through some consolidations over the last three or four years,'' he said. ``We think that's probably the right trend.''
The review should be completed by the end of the second quarter.
The company operates vinyl siding plants in London, Ontario; Claremont, N.C.; and Joplin, Mo. It sold a plant last year to Perrysburg, Ohio-based Jancor Cos. Inc., which owns vinyl siding maker Heartland Building Products Inc. in Boonesville, Miss.
Owens Corning's siding unit employs about 2,000. The Fabwel unit makes components for the recreational vehicle industry.
Spokesman Jason Saragian said while a divestiture is possible, it's not a sure thing.