Glass Industry

Vitro Transaction to Increase Ownership Stake in Vitro AFG to 100 Percent

Vitro announced today that the transaction to acquire in its entirety all the capital stock of the Mexican company Vitro AFG, S.A. de C.V. (Vitro AFG) by Vitro's subsidiary Viméxico, S.A. de C.V. (Viméxico), has been approved by the Mexican Federal Antitrust Authorities.

announced today that the transaction to acquire in its entirety all the capital stock of the Mexican company Vitro AFG, S.A. de C.V. (Vitro AFG) by Vitro's subsidiary Viméxico, S.A. de C.V. (Viméxico), has been approved by the Mexican Federal Antitrust Authorities.

As announced on July 24, 2007, the Company exercised its right to purchase its partner AFG Industries Inc. 50% stake for US$6 million. Vitro AFG owns a float glass manufacturing facility located in Mexicali, Baja California, México.

Vitro AFG was a 50/50 joint venture between Viméxico and AFG Industries, a subsidiary of the Japanese company Asahi Glass Co. Limited. The joint venture was established to supply the United States and Mexican construction markets with a wide range of flat glass products, from the traditional 2 mm clear glass to 12 mm thick glass. The joint venture began operations on November 18, 2003 with a co investment of approximately US$100 million.

"This transaction will significantly strengthen our market position, as we expecto too further benefit from the dynamic growth of the architectural glass market in México. The addition of this significant manufacturing capacity allows us to serve our customer's requirements and exceed their expectations within México and abroad. Close to 78,000 tons per year of additional capacity of float glass will be dedicated to the Mexican market and exports", said Hugo Lara, President of Vitro's Flat Glass Business Unit.

With this acquisition, Vitro has 3 float manufacturing facilities and 23 processing plants previously owned in Mexico, United States, Colombia, Spain and Portugal.

Vitro AFG is part of Vitro's Flat Glass business unit focused on the manufacturing, processing and distribution of flat glass for the construction and automotive industry with annual sales in 2006 of US$1,176 million. Vitro's Flat Glass business unit is the largest flat glass producer in México and an important player in Latin America, United States and Europe.

Vitro AFG employs 230 people and manufactures 155,000 tons per year of float glass for the construction market.

Source: Vitro