Owens Corning Completes Acquisition of Saint-Gobain's Reinforcements and Composite Fabrics Businesses
October 31 2007 - 8:05PM
PR Newswire (US)
Company announces intent to invest in glass reinforcements and
composite fabrics production in China and Russia BRUSSELS, Belgium,
Nov. 1 /PRNewswire-FirstCall/ -- Owens Corning (NYSE:OC) has
completed the acquisition of Saint-Gobain's Reinforcements and
Composite Fabrics businesses for $640 million following approval by
regulatory authorities in Europe and the United States. The
acquisition accelerates Owens Corning's global growth strategy and
strengthens its position as a market leader in glass reinforcements
and composites. The acquired business is comprised of 20 plants and
more than 4,500 employees around the world. The acquisition, net of
planned divestitures, increases Owens Corning's glass fiber market
position. In particular, the company acquires a more substantial
footprint in emerging markets like China, Russia, India, Mexico and
Brazil. In addition, the acquisition of the Saint-Gobain Fabrics
business gives Owens Corning a market-leading position in the
high-growth fabrics industry. As previously announced, Owens
Corning will divest its composite manufacturing facilities in
Battice, Belgium, and Birkeland, Norway, in order to address
regulatory concerns related to the transaction. The company also
recently sold its CFM (Continuous Filament Mat) business in
Huntingdon, Penn. The Wichita Falls, Texas, facility of
Saint-Gobain is not part of the transaction. Owens Corning
Composites Expansion in China and Russia Owens Corning also
announced today that it intends to expand its glass reinforcements
and composite fabrics production capabilities beginning in 2008 to
support market growth in Asia and Eastern Europe, and specifically
in the developing and emerging countries of China and Russia. The
proposed expansion is designed to increase the company's
capabilities at its newly acquired Hangzhou, China, and
Gous-Khroustalny, Russia, plants within the next two years. It is
the first step in a multi-phase plan to increase production of
glass reinforcements and composite fabrics in these countries by
2010. The size and cost of the planned capacity additions were not
announced. These investments will be subject to all necessary
corporate and regulatory approvals. "The market for
glass-reinforced composite materials is growing 5 to 7 percent per
year globally and even faster in developing countries such as China
and Russia, and in Eastern Europe," said Chuck Dana, president of
Owens Corning's Composite Solutions business. "Expanding our
production platforms in China and Russia will position Owens
Corning's Composites organization to serve a growing and diverse
customer base in Asia and Eastern Europe with industry-leading
products for key markets such as infrastructure, construction,
automotive, electronics, and consumer goods," said Mr. Dana. "This
is just one example of how this acquisition allows us to enhance
our presence in growing markets around the world to create
meaningful value for customers." The expansion will incorporate the
company's most advanced technologies including its patented
Advantex(R) and advanced glass-melting technology platforms. These
technologies bring world-class energy efficiency and emissions
control, while providing customers with unique product benefits
including corrosion resistance and high strength. About Owens
Corning Owens Corning (NYSE:OC) is a world leader in building
materials systems and composite solutions. A Fortune 500 company
for 53 consecutive years, Owens Corning people redefine what is
possible each day to deliver high-quality products and services
ranging from insulation, roofing and masonry products, to glass
composite materials used in transportation, electronics,
telecommunications and other high-performance applications. Founded
in 1938, Owens Corning is a market-leading innovator of glass fiber
technology with sales of $6.5 billion in 2006 and operations in 30
countries. Additional information is available at
http://www.owenscorning.com/. This news release contains
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934. These forward-looking statements are subject to risks,
uncertainties and other factors, many of which are outside the
control of the company, that could cause actual results to differ
materially from those projected in these statements and from the
company's historical results and experience. Further information on
factors that could affect the company's financial and other results
is included in the company's Forms 10-Q and 10-K, filed with the
Securities and Exchange Commission. Since it is not possible to
predict or identify all of the risks, uncertainties and other
factors that may affect future results, the factors detailed in the
company's Forms 10-Q and 10-K should not be considered a complete
list. Any forward-looking statement speaks only as of the date on
which such statement is made, and the company undertakes no
obligation to update or revise any forward-looking statement,
whether as a result of new information, future events or otherwise.
DATASOURCE: Owens Corning CONTACT: Media, Jason Saragian,
+1-419-248-8987, or Investors, Scott Deitz, +1-419-248-8935, both
of Owens Corning Web site: http://www.owenscorning.com/ Company
News On-Call: http://www.prnewswire.com/comp/677350.html
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