Saint Gobain Or Regulatory News (COD)

July 20, 2011

Construction of a New Glass Wool Plant in Japan

To more effectively serve customers in western Japan, Saint-Gobain plans to build a new glass wool production facility near Osaka in the Kansai region through its local subsidiary Mag-Isover, Japan's leading insulation manufacturer.

With planned capacity of 60,000 tonnes, the plant is scheduled to come on stream before the end of 2013. Representing a total investment of around €140 million, the plant will directly employ more than one hundred people. Its output will add to the 90,000 tonnes of glass wool currently being produced by the Mag-Isover facilities located near Tokyo in the Kanto region. This will bring the company's total production capacity across its four plants to 150,000 tonnes.

This investment comes at a time when Japan urgently needs to reduce its energy consumption. Buildings account for 30% to 40% of the energy consumed in the country, and therefore offer enormous energy saving potential, particularly in the areas of heating and air conditioning.

Acquisition of Linerock in Russia

Saint-Gobain is also pursuing its expansion in Russia, where the Insulation Activity has acquired Linerock, a company based in Tcheliabinsk. Linerock is the Ural region's leading manufacturer of rock wool products, the most widely used insulation materials in the Commonwealth of Independent States (CIS). The company employs over 500 people and reported consolidated revenues of around €25 million in 2010.

The Linerock acquisition will enable Isover to extend its geographical presence and enhance its product range to become a major player in Russia's fast-growing insulation market.

The transaction is fully aligned with the Group's strategy to expand its operations in a region experiencing remarkably dynamic growth and offering considerable development potential.

About Saint-Gobain

Saint-Gobain, the world leader in the habitat and construction markets, designs, manufactures and distributes building materials, providing innovative solutions to the challenges of growth, energy efficiency and environmental protection. With 2010 sales of €40.1 billion, Saint-Gobain operates in 64 countries and has nearly 190,000 employees. For more information about Saint-Gobain, please visit www.saint-gobain.com.