Building and construction supplier Owens Corning is reviewing strategic moves for its global glass reinforcements unit, which sells into many markets including plastics compounding.
In a news release, officials with OC in Toledo, Ohio, said options for the business include a sale or spinoff. They added the decision "is consistent with the company's strategy to focus on building and construction materials."
The business being reviewed is part of OC's Composites unit. It makes, fabricates and sells glass-fiber reinforcements (GR) in a variety of forms.
The business generates annual sales of about $1.3 billion and has 18 manufacturing sites worldwide. In addition to plastics, the business sells into wind energy, infrastructure, industrial, transportation and consumer markets.
Officials said the glass nonwovens business that supports the firm's roofing business, along with the recently acquired WearDeck business, are not included in the review.
"We have taken actions over the past several years to optimize our performance and have concluded it is the right time to explore options for our glass reinforcements business," OC Chairman and CEO Brian Chambers said. "We continue to focus on strengthening our position in building and construction materials."
He added the GR business "has built market-leading positions ... which create the opportunity to operate as a core business within another company or as a stand-alone entity focused more on industrial end markets."
"Throughout our review, we are committed to maintaining our strong customer relationships," Chambers said. OC has not set a timetable to complete the review.
OC employs 18,000 worldwide and posted sales of $9.7 billion in 2023. The GR unit being reviewed generated about 13 percent of OC's sales last year.
In the last two years, OC has made three plastics-related investments. In March 2023, the firm announced plans to build a new 150,000 square-foot plant making extruded polystyrene rigid foam insulation in Russellville, Ark.
The new plant will make OC's Foamular NGX for commercial and residential construction. It should begin production in 2025. OC has operated in Russellville since the mid-1980s.
In June 2022, OC acquired Natural Polymers LLC, a Cortland, Ill-based polyurethane systems house specializing in spray foam formulations. Natural Polymers had sales of around $100 million in 2022. OC officials said at the time the purchase would allow the firm to offer a more diversified insulation product portfolio.
OC bought the WearDeck composite decking division of JR Plastics Corp. in 2022. WearDeck boards are extruded from high density polyethylene reinforced with OC glass fiber at JR's headquarters and manufacturing site in Ocala, Fla. The division employs about 100. WearDeck posted sales of about $60 million in 2022.
OC's history developing and supplying fiberglass-reinforced plastic dates back to 1935. Among its many products, OC was the first supplier of reinforcement fibers used in the Chevrolet Corvette, starting in 1953.