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P&G TO ACQUIRE INTEREST IN RUSSIAN MANUFACTURING OPERATION

 CINCINNATI, Nov. 19 /PRNewswire/ -- The Procter & Gamble Company (NYSE: PG) announced today that it plans to acquire an interest in PO Novomoskovskbytkhim, the largest detergent manufacturing plant in Russia. The plant, located in Novomoskovsk (130 miles south of Moscow), has been producing detergents for P&G for about a year.
 As a first step, the Russian Privatization Fund yesterday accepted P&G's bid to purchase 14 percent of the current shares of the business in a public bidding process. The company said it also has signed an agreement to invest $50 million in the plant over a five year period in exchange for an additional stake in the business. These combined investments will give P&G a majority position at the end of the investment period. The remaining shares will be owned by the workers, the management, the public and the government.
 P&G said the investment in the plant further underscores the company's confidence in the long-term potential of the Russian market. P&G said the plant will focus on laundry and cleaning products for the time being, but the agreement provides for cooperation in a broader range of consumer product categories in the future.
 P&G began its operations in the former Soviet Union in August 1991. It started selling several of its products in St. Petersburg, Russia, later that year and expanded its sales into Moscow in 1992. P&G began its first local manufacturing in Russia in December 1992 when it signed a contract manufacturing agreement with the state-owned Novomoskovsk plant. Currently, the company manufactures Ariel and Tix laundry detergents in Russia, and imports the following additional products: Camay soap; Head & Shoulders, Pantene Pro-V and Vidal Sassoon shampoos; Oil of Ulay skin cream; Blend-a-med toothpaste; and Old Spice men's toiletries.
 Procter & Gamble had worldwide sales of $30.4 billion in fiscal 1992- 93. The company makes and markets a wide range of products for consumer and institutional use worldwide, with operations in more than 50 countries.
 -0- 11/19/93
 /CONTACT: Terry E. Loftus, in Cincinnati, 513-983-9789, or Dietmar Soeffing, in Eschborn, Germany, 49-6196-89-1003, both of Procter & Gamble/
 (PG)


CO: The Procter & Gamble Company; PO Novomoskovskbytkhim ST: Ohio IN: HOU SU: TNM

KL -- CL006 -- 6453 11/19/93 10:32 EST
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Publication:PR Newswire
Date:Nov 19, 1993
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