ENRON AND OWENS-ILLINOIS SIGN LONG-TERM $2.2 BILLION ENERGY MANAGEMENT AGREEMENT
FOR IMMEDIATE RELEASE: Friday, January 19, 2001
HOUSTON -- Enron Energy Services, a subsidiary of Enron Corp., and Owens-Illinois, Inc. (O-I), a leading producer of glass and plastics packaging, announced today a ten-year energy management agreement. The agreement covers 53 Owens-Illinois manufacturing facilities in 20 states and will cover projected energy purchases in excess of $2 billion.
Through this initial agreement, Enron will work with Owens-Illinois to manage the supply of electricity and natural gas to O-I facilities and will continue to look for ways to reduce O-I’s aggregate demand.
“Securing affordable, reliable energy is a key element of our strategy to be the low-cost producer in every market we serve,” said Richard A. Jun, vice president of corporate purchasing for Owens-Illinois. “This contract with Enron effectively adds its leadership in energy purchasing management to our ongoing commitment to cost management, an arrangement that should provide savings and reduce our exposure to short-term energy price fluctuations.”
“Our partnership with Owens-Illinois is a showcase of the depth of Enron’s continuing expansion into the industrial market,” said Lou Pai, chairman and CEO of Enron Energy Services. “Over the length of this contract, Owens-Illinois will see the considerable competitive advantage of their existing cost-control strategies significantly enhanced by the addition of our expertise in energy efficiency and risk management.”
Owens-Illinois is the largest manufacturer of glass containers in the United States, North America, South America, Australia, New Zealand, and China and one of the largest in Europe. Approximately one of every two glass containers made worldwide is manufactured by Owens-Illinois, its international affiliates, or its licensees. O-I also is a worldwide manufacturer of plastics packaging with operations in North America, South America, Australia, Europe and Asia. Plastics packaging products manufactured by O-I include containers, closures and prescription containers.
Enron Energy Services has built a business to transform the energy marketplace by providing integrated energy and facility management solutions. Enron currently manages energy at over 28, 500 customer sites. Contracts signed within the last two years represent a reduction of approximately 8 billion kilowatt hours of electricity consumption and 18 million Btus of natural gas consumption between 2000 and 2012.
Enron is one of the world’s leading electricity, natural gas and communications companies. The company, with revenues of $40 billion in 1999 and $60 billion for the first nine months of 2000, markets electricity and natural gas, delivers physical commodities and financial and risk management services to customers around the world, and is developing an intelligent network platform to facilitate online business. Fortune magazine has named Enron “America’s Most Innovative Company” for five consecutive years, the top company for “Quality of Management” and the second best company for “Employee Talent.” Enron’s Internet address is www.enron.com. The stock is traded under the ticker symbol “ENE.”
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For additional information please contact:
Peggy Mahoney
Enron Energy Services
713-345-7034
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