Owens Corning And Groupe Porcher Industries Joint Venture Planned

Owens Corning has announced the formation of a new joint venture, which will acquire the company's yarns and specialty materials business. The partner in the new company is Groupe Porcher Industries of Badinieres, France. Owens Corning will receive approximately US$550m in cash and will continue to participate as a 49% partner in the new entity. The company has been evaluating the disposition of its yarn business, electing the joint venture route as the best value for the company and its shareholders. The ability to safeguard Owens Corning's intellectual property and to continue to participate in the yarns market were significant factors in the decision, reports said. The agreements were signed on 31 July 1998.