"This transaction will strengthen our balance sheet and enables us to develop other businesses more efficiently and pursue growth in areas aligned to our strategy," commented Marco Levi, President & CEO of Ahlstrom.

"We are happy to have identified Owens Corning as the buyer as it is vertically integrated and has ample resources to develop the glass fibre business further. We also believe this is a good solution for the unit's employees transferring to the new owner."

Building & Wind business unit

The Building & Wind business unit produces glass fibre tissue used mainly in flooring applications, as well as reinforcements used in windmill blades.

In 2014 the net sales of the business were approximately EUR 77 million and the business was profitable. The unit operates two plants in Finland in Karhula and Mikkeli and one in Tver, Russia, employing in total approximately 260 persons. It serves markets mainly in Europe and Russia, as well as in North America and Asia.

The unit to be divested was part of the Building and Energy business area until the end of 2015, while it has been part of the Filtration & Performance business area from the beginning of this year.

Transaction

The transaction is expected to be completed during the first half of 2016 and is subject to customary completion terms, such as merger clearances from relevant competition authorities.

Ahlstrom expects to book a capital gain of approximately EUR 25 million following the completion of the transaction. The gain will not have an impact on Ahlstrom's operating profit excluding non-recurring items.

The divestment of the Building & Wind business will have no impact on the company's outlook statement for 2015.

Owens Corning

Owens Corning is a leading producer of glass fibre. The company operates in three segments: insulation, roofing and asphalt, and composite solutions. Its composites business manufactures products from fibreglass reinforcements to meet diverse needs in diverse markets.

The company aims to develop products and systems that save energy and improve comfort in commercial and residential buildings. Based in Toledo, OH, Owens Corning posted 2014 sales of US 5.3 billion and employs about 15,000 people in 26 countries.

www.ahlstrom.com