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GRACE STARTS FOOD PACKAGING BUSINESS IN RUSSIA

 BOCA RATON, Fla., March 22 /PRNewswire/ -- W. R. Grace & Co. (NYSE: GRA) today announced the formation of a multimillion dollar perishable foods packaging joint enterprise in the Commonwealth of Independent States (C.I.S.). The initiative centers around the establishment of a Grace majority-owned joint stock company with the barrier plastic materials division of A/O Kaustik. The joint stock company will be called A/O Grace Kaustik and will concentrate on the manufacture of packaging materials for perishable foods. A/O Kaustik is a recently privatized major chemical and industrial concern employing 6,900 people in Volgograd, Russia.
 "The significance of this business venture," said Jean-Louis Greze, president of Grace Packaging worldwide, "is that it represents a unique opportunity to enter and develop what is expected to become one of the largest packaging markets in the world. Presently, the perishable food industries of Russia and other former Soviet countries are dramatically short of vacuum packaging materials. Kaustik is the major supplier of high-barrier packaging materials for use in vacuum packaging applications in the Commonwealth. Its business volume represents a significant addition when compared to the size of Grace's existing European shrinkable barrier bag business. Grace's objective is to collaborate with Kaustik to significantly expand the venture's capacity for quality vacuum packaging materials."
 "The Grace contribution to the joint venture, amounting to several million dollars in modern equipment, advanced technology and financing, should help to develop a more efficient food distribution system within the Commonwealth -- one of the priorities of the current economic restructuring. Modernization of food distribution should lead directly to improvements in the quality of life for the people of Russia and other Commonwealth countries," Greze added.
 Grace has also established in Moscow a 100 percent Grace- owned marketing and sales subsidiary, called A/O Grace, through which it will provide packaging materials manufactured by the joint enterprise, packaging equipment, technical services and packaging know-how directly to the food processing industries to help revolutionize food distribution systems in the former Soviet Union.
 The Grace subsidiary will also be the medium for market entry of other Grace core product lines for which the C.I.S. is expected to become a major strategic source of long-term growth. These product lines may include construction products, health care products and services, container sealants, catalysts and silica-based products and water treatment chemicals.
 Grace is the world's largest specialty chemicals company with a leadership position in specialized health care.
 -0- 3/22/93
 /CONTACT: Chuck Suits of W. R. Grace & Co., 407-362-2600 or 800-GRACE99/
 (GRA)


CO: W. R. Grace & Co. ST: Florida IN: CHM SU:

SS-XX -- FL004 -- 8063 03/22/93 08:57 EST
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Publication:PR Newswire
Date:Mar 22, 1993
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