Owens Corning ( OC - Snapshot Report ) has officially announced its strategic alliance with leading chemical company, BASF, and multi-national thermoplastic producer, TenCate Advanced Composites. The companies will work together to develop thermoplastic composites for mass production of automobiles in an attempt to make vehicles lighter, durable, environment friendly and more fuel efficient.

Under the strategic alliance, BASF will contribute its knowledge of producing and formulating thermoplastic resins while TenCate Advanced Composites will offer its proficiency in composites manufacturing. Owens Corning, on the other hand, will share its technology to develop tailor-made fabrics and glass reinforcement products.

As per the alliance, the industry leaders will be able to come across the best possible solutions for clients and the highest quality design and structure. A reduction in processing cost will help in the achievement of composite materials in automotive lightweight construction.

Demand for lighter vehicles, which maintain strength and durability, has soared due to rigid global emission standards. Fiber reinforced plastic composites can be 30% to 50% lighter than metal parts, which will help to reduce emissions and costs for consumers.

Continuous fiber reinforced thermoplastic composites, such as tapes and laminates used in thermoforming processes, have huge potential for structural parts. Thermoplastic processing reduces production cycle times and can also be recycled.

Toledo, Ohio-based Owens Corning is a leading producer of residential and commercial building materials, glass-fiber reinforcements and engineered materials for composite systems. Having roughly 15,000 employees in 27 countries, Owens Corning is a market-leading innovator of glass-fiber technology.

Owens Corning currently retains a short-term Zacks Rank #3 (Hold). James Hardie Industries plc ( JHX - Snapshot Report ) , Masco Corporation ( MAS - Analyst Report ) and Trex Co. Inc. ( TREX - Snapshot Report ) also belong to the same industry where Owens Corning operates. Each of them holds a Zacks Rank #2 (Buy).