Acquisition

26 Oct 2005 16:59

Compagnie de Saint-Gobain26 October 2005 pressrelease October 26, 2005 XUGANG ACQUISITION On October 25, 2005, the Pipe Activity of the Saint-Gobain Construction ProductsSector signed an agreement to acquire 100% of Xugang company (Xuzhou GeneralIron And Steel Works), which belongs to the municipality of Xuzhou (Jiangsuprovince), as well as the shares held by Xugang in DIP (Ductile Iron Pipe Co.). This agreement will become valid once the authorization of the relevant Chineseauthorities has been obtained. Xugang is Saint-Gobain's partner in the Saint-Gobain Pipelines Xuzhou JointVenture, which was created in November 2002. The Xugang Company produces roughly 600 kt of molten cast iron per year. Itsfacilities include five blast furnaces, installations for the preparation ofiron ore and two coke batteries. This company is the major supplier of liquidcast iron for the production units of Saint-Gobain Pipelines Xuzhou and DIP. This acquisition strengthens the number two position of the Pipe Activity in theChinese market which is experiencing strong growth. It also allows a significantimprovement in the competitiveness of these pipe production units in China. With this acquisition, the Pipe Activity also consolidates its world leadershipin cast iron pipe systems. Investor Relations Department Mrs Florence TRIOU-TEIXEIRA Tel.: +33 1 47 62 45 19Mr Alexandre ETUY Tel.: +33 1 47 62 37 15 Fax.: +33 1 47 62 50 62 This information is provided by RNS The company news service from the London Stock Exchange