New plant

RNS Number : 3813N

Compagnie de Saint-Gobain

31 August 2011

August 31, 2011

Saint-Gobain to Invest $100 million in New Proppant Plant in the United States

Saint-Gobain today announced the construction of a proppant plant in Saline County, Arkansas, in the United States.

Representing a total investment of $100 million (€ 69 million), the new facility will be built on a 28-hectare parcel of land and will eventually provide jobs for 140 people.

The new plant will manufacture proppants - spherical beads about the size of a grain of sand that are used in the oil and gas industry.Proppants are inserted into underground fractures in oil and gas wells to "prop" open the fracture, increasing conductivity and enhancing well performance.

Saint-Gobain already produces proppants in China and in Fort Smith, Arkansas.

"This investment is part of Saint-Gobain's strategy to invest in new technologies for energy and the environment," says John Crowe, Saint-Gobain general delegate in North America. "Growth in global energy demand is creating greater activity among oil and gas drilling companies, whose need for proppants will eventually exceed the production capacity of our Fort Smith facility. Saline County is the perfect location for the new plant because of its proximity to our major US oil and gas customers."

Saint-Gobain plans to break ground for the new facility by the end of the year, with production expected to start in late 2012.

About Saint-Gobain

Located in 64 countries with nearly 190,000 employees, Saint-Gobain, the world leader in the habitat and construction markets, designs, manufactures and distributes building materials, providing innovative solutions to meet growing demand in emerging and mature countries, for energy efficiency and for environmental protection. Saint-Gobain NorPro provides ceramic solutions to the oil, gas and petrochemicals industry. In particular, it is world No2 for the production of proppants for use in oil and gas drilling.

For more information about Saint-Gobain, please visit: www.saint-gobain.com

For more information about Saint-Gobain NorPro, please visit: http://www.norpro.saint-gobain.com