Owens Corning, Saint-Gobain Plants Sold/Closed in Wake of Merger
By Staff | April 2008
To address regulatory concerns about Owens Corning Composites Solutions LLC’s (OC, Toledo, Ohio) Oct. 31, 2007 acquisition of Saint-Gobain’s (Courbevoie, France) Reinforcement and Composites Fabrics businesses, the parties recently took action on several divestitures. Owens Corning has reached an agreement to sell two composites manufacturing plants to Platinum Equity (Beverly Hills, Calif.). The facilities are located in Battice, Belgium and Birkeland, Norway. The transaction, also subject to regulatory approval, is expected to close imminently. Platinum Equity specializes in the merger, acquisition and operation of companies that serve the information technology, telecommunications, logistics, metals services, manufacturing and distribution markets. Saint-Gobain announced in early March that it would close its Saint-Gobain Vetrotex America plant in Wichita Falls, Texas. The facility, which manufactures glass fiber reinforcements, will be shut down in the third quarter of this year, resulting in the loss of approximately 725 jobs. A progressive shutdown is planned, with layoffs beginning in June.
Saint-Gobain Vetrotex America was excluded from the sale for antitrust considerations. Saint-Gobain has been trying to find a buyer for the 330-acre Texas plant since July 2006. However, despite many months of effort and negotiations with several prospective purchasers, the company says it has been unable to reach an economically viable agreement that would assure the future of the plant.
Olivier Duval, head of strategy for Saint-Gobain’s High-Performance Materials Sector, said, “It was Saint-Gobain’s sincere hope to find a buyer who would keep the plant open as a going concern. We are very disappointed that many months of effort have not resulted in a happier outcome for Saint-Gobain Vetrotex America and its employees. As Saint-Gobain is no longer in the reinforcements and composites business, it is not economically feasible for us to keep the plant running as a standalone operation within our group.”
