Owens Corning currently owns 40 percent of this Mexican based joint venture, which was formed in 1957. Vitro has also agreed to pay Vitro Fibras approximately US$22 million to pay its bank debt at the closing of negotiations.
"This is a strategic move for our company and part of our plan to focus on our core businesses of Flat Glass, Containers and Glassware" said Federico Sada, Vitro's CEO. "Vitro will continue to focus its resources and energy to maintain and develop its glass-oriented businesses throughout the world. Vitro will use the resources obtained from this transaction, to strengthen its financial position and operations."
Vitro Fibras, S.A. manufactures a wide range of light-density, fiber glass products as well as molded pipe, board and composite reinforcements with operations in Mexico City and three (3) fabrication facilities located in Mexicali, Monterrey, and San Luis Potosi. In 2003 Vitro Fibras, S.A. had estimated sales of US$64 million.
The transaction is subject to customary closing conditions, including Mexican regulatory approval, and to the approval by the United States Bankruptcy Court for the District of Delaware administering the chapter 11 case of Owens Corning.
Vitro Reaches Agreement to Sell its Stake in Vitro Fibras
Vitro, S.A. de C.V. announced that it has reached a preliminary agreement to sell its 60 percent interest in Vitro Fibras, S.A. to Owens Corning for approximately US$71.5 million in cash.