IFC Support to Owens Corning Will Help Strengthen Competitiveness and Establish Environment-Friendly Processes
In New Delhi:
Minakshi Seth
Phone. +91 11 4111 1058
E-mail: mseth@ifc.org
In Washington, DC:
Carmen Powell
Phone: +1 202 473 4982
E-mail: cpowell@ifc.org
New Delhi, India, August 29, 2007
— IFC, a member of the World Bank Group, will invest $12 million to help
Owens Corning (India) Limited expand the capacity of its glass-fiber manufacturing
facility at Taloja, in the Indian state of Maharashtra. The project expands
the existing glass melter and related downstream equipment and modernizes
the technology deployed. This will result in significant energy and efficiency
improvements.
The global market for glass-fiber, which
was estimated at 3.2 million tons in 2006, is projected to grow at an annual
rate of 4.2 percent, reaching 3.7 million tons by 2010. The Indian glass-fiber
market is small compared to major markets, such as Europe and the United
States.
Over the last few years, demand for
glass-fiber in India grew at an average of about 20 percent a year, reaching
49,500 tons in 2006, when installed capacity was 58,000 tons annually.
The demand is expected to increase by 18 percent a year over the medium
term, driven by the growing infrastructure and automotive sectors. With
Owen Corning’s expansion, India’s installed glass-fiber capacity will
increase to 67,000 tons a year by the end of 2007.
“IFC’s investments will help us continue
to improve our efficiency and competitiveness,” explained Satish Kulkarni,
Managing Director of Owens Corning (India) Limited. “We have been partnering
with IFC since 1997, when they helped us set up an advanced technology
greenfield venture. Their global knowledge and expertise has helped us
strengthen our business in the region, as well as influenced other lenders’
long-term view of our company.”
“Working with Indian companies to restructure
and expand their businesses, while strengthening their competitiveness,
is a key component of IFC’s strategy in South Asia. With this investment,
we will help expand the capacity of glass-fiber and encourage Owens Corning
to continue implementing environmentally friendly technologies and processes,”
said Paolo M. Martelli, IFC Regional Director for South Asia.
“We are pleased with the progress that
Owens Corning has made over the years in establishing itself as a strong
player in India’s glass-fiber industry,” said Dimitris Tsitsiragos, IFC
Director for Global Manufacturing and Services. “Our continued partnership
shows our confidence in the company, as we endorse its commitment to following
good practices and raising standards in the industry.”
About IFC
IFC, a member of the World Bank Group, fosters sustainable economic growth
in developing countries by financing private sector investment, mobilizing
capital in the international financial markets, and providing advisory
services to businesses and governments. IFC’s vision is that poor people
have the opportunity to escape poverty and improve their lives. In FY06,
IFC committed $8.3 billion, including loan participations, to 284 investments
in 66 developing countries. For more information, please visit www.ifc.org.
About Owens Corning India Limited
OCIL is a joint venture between Owens Corning U.S.A., and Mahindra &
Mahindra, India. Owens Corning is the inventor of glass-fiber, as well
as a key manufacturer globally. It has recently announced plans to acquire
Saint-Gobain’s Reinforcements and Composites business for $640 million.
Mahindra & Mahindra is a leading manufacturer of utility vehicles and
tractors in India.
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