The alliance will utilise Jinniu's existing glass fibre furnace capacity in China to provide a reliable supply of customised boron-free glass fibre reinforcements.
Both companies will continue to operate as separate commercial entities.
|By utilising Owens Corning's advanced technology expertise, and Jinniu's manufacturing capacity, we will continue to meet the market's present and future needs for boron-free glass fibre reinforcements in China.
|Arnaud Genis, Owens Corning Group President, Composites Solutions
"This supply alliance is an example of two companies working creatively to serve glass fibre customers in the high growth China market with a capital-efficient solution," explains Arnaud Genis, Owens Corning Group President, Composites Solutions.
"Jinniu and Owens Corning have agreed to complement each other's strengths, which will provide a good foundation for sustainable development for both companies," says Qi Zemin, general manager of Jizhong Energy Resources Co Ltd, the parent company of Xingtai Jinniu Fiberglass Company.
"This is also a creative step to explore new models of development for China glass fibre companies."
- Read our recent interview with Owens Corning's Arnaud Genis here: Interview: Owens Corning optimistic for 2013. "Pricing in this industry is very much related to capacity utilisation and our market intelligence tells us that by the middle of this year capacity utilisation will be at a high level, and next year it will be in the territory where availability starts to become a concern," he notes.