Saint-Gobain - Uk Plant Planned

Saint-Gobain has announced that it is planning to build a float glass production line in the UK with a production capacity of 170m t/year and an estimated investment of around £65m. The plant, which is expected to come into operation at the end of 1999, will add one-third to the UK's glass production capacity. Saint-Gobain already sells 17m square metres of flat glass in the UK but has supplied the market from its units in France, Belgium and Germany. The company's financial director said the plant was aimed at lowering production costs in Britian rather than at expanding its market share but was not preapred to disclose where it will be sited. Shares in UK rival Pilkington lost 11% of their value when Saint-Gobain announced its plans.