30 January 2004
30 January 2004
Owens Corning has reached agreement with Vitro S.A. de C.V., a Mexican corporation, to purchase its interest in a holding company that owns Vitro Fibras, a Mexican-based joint venture of the companies.
Owens Corning currently has a 40 percent ownership position in the joint venture, which was formed in 1957.
""We are really excited about the opportunity to support the growth of our customers by investing in additional manufacturing capacity with facilities and people which are already familiar with Owens Corning processes and commitment to quality,"" said Owens Corning CEO Dave Brown. ""This move gives us additional opportunities for growth in the United States and opens up numerous avenues for additional growth in Mexico and Latin America.""
The joint venture, which manufactures a wide range of light-density, fiber glass products as well as molded pipe, board and composite reinforcements, has manufacturing operations in Mexico City and three OEM fabrication facilities located in Mexicali, Monterrey and San Luis Potosi, Mexico.
""The addition of this business to the Owens Corning network means we will be able to grow our presence in a number of important reinforcement and insulation markets,"" said George Kiemle, president of Owens Corning’s Insulating Systems Business. ""And the fact that this capacity is already up and running means that we will be able to meet the needs of our Owens Corning customers, and our new customers, immediately.""
The transaction is subject to Mexican regulatory approval as well as approval by the United States Bankruptcy Court for the District of Delaware.