This is sensational news in the global PET packaging market: Schmalbach-Lubeca / Continental Can Europe (HQ: Kaiserswerther Str. 115, D-40880 Ratingen), which is majority-owned by Viag AG, intends to take over the PET business – the Plastic Container Division – from the US company Johnson Controls Inc. (JCI, Milwaukee), in January 1997. Schmalbach-Lubeca will thus turn into a world leader in PET packaging. Hanno C. Fiedler, chairman and chief executive officer of Schmalbach-Lubeca, said: "By purchasing JCI's Plastic Container Division we are realizing our globalization strategy. The acquisition of the PET activities is – after creating a joint venture in metal packaging in alliance with Doughty Hanson & Co and Pechiney – an important step in restructuring our portfolio." The transaction is subject to approval by the regulatory authorities. The purchase price was not revealed.

Due to the purchase of the PET division from Johnson Controls, Schmalbach-Lubeca's PET packaging sales will rise to about DM 2bn in 1997. "Our PET packaging division will thus become the most important contributor to sales", stated Fiedler. With approx. 15 percent market share, these acitivities would secure a leading world-wide position and, in addition to further improving its standing on the European markets, it will gain access to the strategically important American markets. "The superior technology, development and quality leadership will increasingly enable us to achieve future growth on a world-wide basis", Fiedler stressed.

Johnson Controls (annual sales 1995/96: DM 12.9bn) is a major supplier of automotive equipment, control systems and services for non-residential buildings and plastic packaging. The Plastic Container Division (PCD) employs circa 2,300 people and turns over DM 1.2bn annually. At 27 production facilities, located mainly in North America, South America and Europe, PCD manufacturers PET packaging for food and beverage products. PCD is a technology leader in the areas of hot-filling and recycling.

The PET division of Schmalbach-Lubeca achieves with a workforce of 780 an annual turnover of approx. DM 600m. At 12 locations in Europe and Asia, the PET division mainly manufactures refillable PET and one-way PET bottles for the beverage industry. The Schmalbach-Lubeca / Continental Can Europe Group has 69 locations world-wide and manufactures packaging and closing systems of PET, tinplate, aluminium and plastics. With a workforce of 12,612, the company achieved sales of DM 4.1bn in 1995.