Owens Corning to divest glass reinforcements business to Praana Group in $755m deal

Owens Corning, a global leader in building materials manufacturing, has announced the sale of its glass reinforcements division to India-based Praana Group in a deal valued at $755 million. The sale, which is part of Owens Corning’s broader strategy to focus on residential and commercial building products, will allow the company to realign its resources towards its core markets in North America and Europe.

The decision comes after a comprehensive strategic review aimed at enhancing operational efficiency and capital allocation. Owens Corning, which reported $9.7 billion in revenue in 2023, has been refining its portfolio to maximize long-term shareholder value. By divesting from glass fiber reinforcements, a segment primarily catering to industrial, infrastructure, and renewable energy applications, the company is positioning itself as a focused leader in the building products sector.

Owens Corning’s glass reinforcements business, which generated approximately $1.1 billion in revenue in 2024, employs around 4,000 people across 18 facilities in 12 countries. The transaction marks a significant shift in the company’s operational structure, allowing it to concentrate on its roofing, insulation, and building materials divisions.

What Does This Acquisition Mean for Praana Group?

For Praana Group, the acquisition represents a strategic expansion into advanced composite materials, strengthening its existing expertise in glass fiber reinforcements. The India-based multinational operates a diversified portfolio spanning specialty chemicals, composite materials, and industrial solutions. With this acquisition, the company aims to expand its global manufacturing footprint while enhancing its market competitiveness in industrial composites.

Vishal Goenka, Vice Chairman of Praana Group, highlighted the deal as a key growth opportunity, citing the increasing demand for glass fiber reinforcements in clean energy, sustainable construction, and lightweight automotive components. He stated that the move aligns with global trends toward material innovation and carbon footprint reduction, positioning Praana Group as a major player in the glass fiber reinforcements industry.

Anuj Goenka, Executive Board Member of Praana Group, echoed this sentiment, noting that glass reinforcements play a crucial role in industries such as wind energy, infrastructure, and transportation. The company sees this acquisition as an opportunity to accelerate its long-term growth strategy and expand into new markets.

How Will Owens Corning Reposition Its Business?

Owens Corning’s shift away from glass reinforcements manufacturing marks a strategic realignment toward its core building products business. Following the completion of this sale, Owens Corning will retain its vertically integrated glass nonwovens division, which supplies materials to its roofing and insulation businesses. Additionally, the company will continue operating two glass fiber production plants in the U.S., which will now be integrated into its insulation segment.

Brian Chambers, Chair and Chief Executive Officer of Owens Corning, emphasized that the sale allows the company to strengthen its position in North America and Europe’s building materials market. He described the transaction as a key step in the company’s commitment to delivering long-term, profitable growth while enhancing capital efficiency. Chambers also praised the glass reinforcements division for its contributions to the company’s success and expressed confidence in the business’s future under Praana Group’s leadership.

Why Is the Glass Fiber Reinforcements Market Growing?

The glass fiber reinforcements industry has experienced significant growth in recent years, driven by increasing demand in sectors such as renewable energy, lightweight automotive manufacturing, and infrastructure development. Glass fiber composites offer advantages such as high strength-to-weight ratios, corrosion resistance, and sustainability benefits, making them a preferred material in applications that require durability and performance.

Praana Group sees glass reinforcements as a key component in global sustainability efforts, particularly as industries shift toward energy-efficient and eco-friendly materials. The company plans to leverage Owens Corning’s established customer base and global supply chain to enhance its market presence in high-performance composite materials.

What Happens Next?

The sale, expected to close in 2025, is subject to customary regulatory approvals and closing conditions. Once finalized, it will complete Owens Corning’s review of strategic alternatives for its glass reinforcements business, which was first announced in early 2024.

Following the transaction, Owens Corning will remain focused on expanding its building materials business, investing in roofing, insulation, and specialty building products. Meanwhile, Praana Group will work to integrate the newly acquired business into its existing operations, driving innovation and efficiency in glass fiber reinforcements.

Both companies have expressed confidence that the deal will create long-term value, with Owens Corning enhancing its position as a leader in building materials, and Praana Group strengthening its presence in composite materials and industrial solutions.