Owens Corning and Saint-Gobain Create 'OCV Reinforcements'
February 20 2007 - 5:41PM
PR Newswire (US)
The New Leader in the Reinforcements and Composites Business
TOLEDO, Ohio, and PARIS, Feb. 20 /PRNewswire-FirstCall/ -- Owens
Corning (NYSE:OC) and Saint-Gobain representatives jointly
announced today that they have signed a joint-venture agreement to
merge Owens Corning's Reinforcements Business and Saint-Gobain's
Reinforcements and Composites Business (a part of the entity known
as Vetrotex) into a new company that will be named "OCV
Reinforcements" and that will serve customers with improved
technology, an expanded product range and a strengthened presence
in both developed and emerging markets. On July 27, 2006, Owens
Corning and Saint-Gobain jointly announced that they were in
discussions to merge their respective reinforcements and composites
businesses, thereby creating a global company in reinforcements and
composite fabrics products, with worldwide revenues of
approximately $1.8 billion (euro 1.5 billion) and 10,000 employees.
The agreement signed on Feb. 20, 2007 contemplates that the joint
venture will be owned 60 percent by Owens Corning and 40 percent by
Saint-Gobain. After a minimum of four years, Saint-Gobain will have
the option to sell its 40 percent stake to Owens Corning, and Owens
Corning will have the option to buy Saint-Gobain's stake in the
joint venture. The Owens Corning Saint-Gobain joint venture will
present significant opportunities for synergies. These are expected
to come primarily from scale benefits in purchasing and
procurement; operational and technological plant improvements;
improved distribution costs; reduced administrative costs; and
asset management optimization. The transaction, which has been
approved by the Board of Directors of both parent companies, is
expected to close in mid-2007 and is subject to customary closing
conditions and regulatory and antitrust approvals. About Owens
Corning Owens Corning (NYSE:OC) is a world leader in building
materials systems and composite solutions. A Fortune 500 company
for more than 50 years, Owens Corning people redefine what is
possible each day to deliver high-quality products and services
ranging from insulation, roofing, siding and manufactured stone
veneer, to glass composite materials used in transportation,
electronics, telecommunications and other high-performance
applications. Since the company's founding in 1938, Owens Corning
has been a market-leading innovator of glass-fiber technology with
sales of $6.3 billion in 2005 and 20,000 employees in 26 countries.
Additional information is available at
http://www.owenscorning.com/. About Saint-Gobain Saint-Gobain Group
specializes in the design, production and distribution of
functional materials for the construction, industrial and consumer
markets. The Group is organized into five business sectors: Flat
Glass, High- Performance Materials, Construction Products, Building
Materials Distribution and Packaging. Established in 54 countries,
Saint-Gobain is the market leader in each of its core businesses.
In 2006, it achieved close to ?41.6 billion estimated sales with
around 200,000 employees. Additional information is available at
http://www.saint-gobain.com/. DATASOURCE: Owens Corning CONTACT:
Mr. Jason Saragian, +1-419-248-8987; or Investor Relations, Mr.
Scott Deitz, +1-419-248-8935, both of Owens Corning Web site:
http://www.owenscorning.com/ http://www.saint-gobain.com/
Copyright
Owens Corning (NYSE:OC)
Historical Stock Chart
From Jun 2024 to Jul 2024
Owens Corning (NYSE:OC)
Historical Stock Chart
From Jul 2023 to Jul 2024