Saint-Gobain's Packaging Sector expands in Eastern Europe

The acquisition is in line with the strategy being pursued by Saint-Gobain's Packaging Sector in emerging countries.

21/09/05 Saint-Gobain's Packaging Sector has recently acquired majority stakes in Ukraine-based Consumers Sklo Zorya and Russian companies Sitall and Kavminsteklo.

The acquisition of these glass packaging companies whose combined sales total 69 million EUR in 2004 is in line with the strategy being pursued by Saint-Gobain's Packaging Sector in emerging countries. With this move, Saint-Gobain extends its network of complementary glassworks in strong growth markets.

Building on a tradition of glass manufacturing, a dynamic workforce, and the wealth of expertise brought by Saint-Gobain, these three glassworks will be able to offer their customers glass packaging that meets the most stringent technical requirements.

Saint-Gobain's Packaging Sector will oversee the ongoing development of these sites and will offer its Eastern European customers a local source of high-quality products bolstered by international best practices.

These investments are implemented in collaboration with the European Bank for Reconstruction and Development (EBRD), with which Saint-Gobain Packaging has established a partnership, giving the bank an option on a minority stake in each company.

With over 20,000 employees across the globe and 78 manufacturing facilities in Europe, the Americas and China, Saint-Gobain's Packaging Sector is a world or European leader in its three business areas:
- the manufacture of glass bottles and jars for the food industry
- the production of specialty glass bottles for the perfume, cosmetics and pharmaceutical industries
- the manufacture of plastic pumps and other dispensing systems for household cleaners, personal and beauty care products, and pharmaceuticals

In 2004, the Packaging Sector achieved total sales of EUR3.8 billion, representing 12% of consolidated sales reported by the Saint-Gobain Group as a whole.

Sitall is a Russian glassworks specializing in premium packaging products. Based in Roslav, 400km (250 miles) southwest of Moscow, Sitall had sales of close to 20 million EUR in 2004.

The manufacturing site already operates three furnaces producing bottles and a fourth furnace is currently being built, which will focus solely on manufacturing bottles for the perfume and cosmetics industries.

Thanks to this acquisition, Saint-Gobain's Packaging Sector is set to become the leading manufacturer of perfume bottles in Russia, with an extensive product range meeting the needs of both Russian and international customers based in the region. The Sector also aims to develop its manufacturing facility to produce, in particular, bottles for the premium spirits market.

The Kavminsteklo glassworks is currently one of the top ten glass packaging manufacturers in Russia. Founded in 1898, the Kavminsteklo manufacturing plant is located in Mineralnye Vody, in the Stavropol region of the northern Caucasus, in a wine-producing region also renowned for its natural mineral water.

Consumers Sklo Zorya is located 320km (200 miles) west of Kiev in northwest Ukraine. The glass manufacturing plant achieved total sales of 23 million EUR in 2004 and produces bottles and jars, largely for the Ukrainian market. A leader in the manufacture of premium glass, the plant also produces customized containers for the liqueurs, soft drinks and food sectors.

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