LONDON: Saint-Gobain announced the signature of an agreement concerning PAM China, pursuant to which the Group is selling 67% of its Pipe business in China to a consortium led by local management.
The transaction should close during summer 2021 and values the company at around €100 million.
PAM China comprises a production facility in Ma’anshan, in the country’s eastern region, employs almost 1,100 people, and generated €170 million in sales and €9 million in operating income in 2020.
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This transaction results in the divestment of Saint-Gobain’s control of PAM China, whilst allowing its link with the Pipe business in Europe to be maintained by way of a long-term industrial partnership. It is part of Saint-Gobain’s continued portfolio optimization strategy to enhance the Group’s growth and profitability profile.
Saint-Gobain designs, manufactures and distributes materials and solutions for the construction, mobility, healthcare and other industrial application markets. Developed through a continuous innovation process, they can be found everywhere in our living places and daily life, providing wellbeing, performance and safety, while addressing the challenges of sustainable construction, resource efficiency and the fight against climate change.