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.
SOURCE Owens Corning
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Related links:
http://www.owenscorning.com/
http://www.prnewswire.com/comp/677350.html/
CONTACT:
Media, Jason Saragian, +1-419-248-8987, or
Investors, Scott Deitz, +1-419-248-8935, both of Owens Corning
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