PPG Industries, Inc. Business Report up until FY ended Dec. 31, 2008
Divestures-In October 2008, the Company completed the divestiture of its automotive glass and services business to Pittsburgh Glass Works LLC, a new company formed by funds managed by Kohlberg & Company, LLC. PPG received approximately $270 million from the transaction. In addition, the Company will hold an approximately 40 percent interest in Pittsburgh Glass Works. (From a press release on Oct.1, 2008)
-In November 2007, Hanwha Living & Creative (L&C) Corporation announced that it has finalized the acquisition of AZDEL Inc., a 50/50 joint venture of SABIC Innovative Plastics (formerly GE Plastics) and PPG Industries. AZDEL Inc. manufactures high-performance thermoplastic composites designed for both interior and exterior applications across many different industries. Major segments served include automotive, heavy truck, recreational vehicle, industrial and other transportation applications. (From a press release on Nov. 20, 2007)
Business Partnership-In December 2007, the Company and Kansai Paint have expanded their alliance, known as PPG Kansai Automotive Finishes (PKAF), to include the sale of automotive coatings to Japanese-owned or operated original-equipment manufacturers (OEMs) in Hungary. The expansion of the alliance will enable both companies to better serve the needs of Japanese automotive manufacturers and parts suppliers operating in Hungary and may lead to future opportunities for collaboration in other areas of Eastern Europe. In operation since 2004, PKAF was formed by PPG and Kansai Paint to provide coatings to global OEMs and to assist both companies in responding quickly and effectively to the demands and requirements of the automotive industry. Additionally, the two companies develop technology jointly to benefit customers worldwide. (From a press release on Dec. 20, 2007)
Acquisition-In February 2007, the Company has signed a Memorandum of Understanding with ICI India Ltd., Mumbai, India, to facilitate the acquisition of ICI's premium automotive refinish business. Upon closing, the business would be acquired by Asian PPG Industries Ltd., a 50 percent joint venture of PPG and Asian Paints Ltd., also of Mumbai. The transaction is valued at approximately $12 million. ICI India Ltd.'s premium refinish business includes the "2K" brand and employs approximately 60 people in India. (From a press release on Feb. 20, 2007)
-In June 2006, the Company acquired the remaining 50-percent share of Dongju Industrial Co., Ltd., from its partners led by Dongju chairman Yeong Kil Sohn. PPG has owned 50 percent of Dongju since 1985 and has accounted for this investment under the equity method of accounting. Dongju serves the automotive original equipment manufacture (OEM), refinish, industrial and packaging coatings segments in South Korea. Dongju has manufacturing locations in Chon Ahn and Busan, South Korea. Terms for the Dongju acquisition were not disclosed. PPG estimates that the company will increase its reported coatings revenues by approximately US$400 million, or 7 percent, on an annual basis as a result of this acquisition together with the acquisition of Performance Coatings and Finishes business of Ameron International Corporation announced on the same day. (From a press release on Jun. 29, 2006)
-During the third quarter of 2006, the Company acquired Australian-based Protec Pty. Ltd. and the assets of Fortec Paints Ltd., Protec's New Zealand business. These businesses manufacture and distribute automotive refinish coatings and light industrial and high performance coatings.
Contracts-In January 2008, Ford Motor Co. announced that the new "Mustang" models would be equipped with the Company's a panoramic glass roof using Sungate infrared reflective (IRR) technology. (From a press release on Jan. 11, 2008)
-Enhanced Technology Glass (ETG) is manufactured through a collaboration between PPG Industries and Saflex, a unit of Solutia Inc. and will be featured on General Motors 2008 full-size passenger vans. The use of ETG by GM in its full-size passenger vans marks the first ever use of this glazing technology in a vehicle. ETG is a glazing system that is an evolution of Safe and Sound laminated glass from PPG, a product currently in use on other GM vehicles for reducing cabin noise. (From a press release on May 7, 2007)
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Technical Alliance-In August 2007, the Company and iGlass Projects Pty. Ltd. of Australia announced they have signed an agreement to develop and commercialize dimmable glazing for automotive sunroofs. The glazing comprises iGlass polymer dispersed liquid crystal (PDLC) switchable thin film, which offers rapid light transmission switching and excellent optical clarity, sandwiched between two plies of special PPG glass. This new glass product offers drivers the capability to switch electrically from a clear transparent view to an opaque surface, providing privacy and sun protection to occupants and objects within the vehicle. the Company will market the glass for sunroof applications in new vehicles as well as the aftermarket, but it can also be used in glazing areas such as rear quarter-windows or rear truck windows. (From a press release on August 6, 2007)
-TRANSSEAL film is a breathable coating designed to protect finished automotive paint surfaces from nicks, scratches and environmental damage during assembly and transit to dealerships. TRANSSEAL film has no volatile organic compound (VOC) and is removed once the automobile arrives at its destination. The film performs like a skin or membrane, allowing the paint surface to breathe (or out-gas), while protecting the finish from being scratched or environmental damage. TRANSSEAL temporary protective film is applied to portions of the 2006 Jeep Liberty body
Sungate IR-reflective windshield
-In January 2007, recent PPG testing showed use of SUNGATE windshields, which reflect about 50 percent of the sun's infrared energy to help keep vehicles cooler, could reduce air conditioning use up to approximately 20 percent. The windshield reduces transmission of ultraviolet and infrared solar energy, which helps reduce interior heat buildup, shorten cool-down time and reduce heat gain while driving (From a press release on Jan. 22, 2007).
Investment Outside USA
-In May 2008, the Company is planning to build its first coatings manufacturing plant in Russia for automotive and other industrial customers. The facility, which will be fully owned by the Company, will employ about 70 people. The new PPG facility will be located about 70 kilometers southwest of Moscow, just north of the city of Kaluga in the Vorsino Industrial Park, close to the new and existing automotive plants. (From a press release on May 22, 2008)