Further proof that PPG Industries is moving towards coatings came at the end of September 2008 with the announcement that it is to add 55-60 jobs and invest USD 8 million in equipment at its Springdal…
Further proof that PPG Industries is moving towards coatings came at the end of September 2008 with the announcement that it is to add 55-60 jobs and invest USD 8 million in equipment at its Springdale plant to produce a line of industrial coatings it plans to buy from BASF Corp. Terms of the purchase were not disclosed. The agreement includes some assets of BASF“s North American coil and extrusion coatings business which manufactures coatings for a range of industries such as construction, appliances, transportation, lighting fixtures and heating, ventilation and air conditioning. PPG has chosen coatings, as well as speciality products such as Transitions eye lenses, as its growth engines as it moves away from its traditional businesses of glass and chemicals. The largest acquisition ever made by the company was the acquisition of Dutch paints maker SigmaKalon Group earlier this year for USD 3 billion. In the deal with BASF, PPG will acquire inventory, a customer list and patents, but not the factories where the coatings are made. For the next year or so, BASF will continue to supply the coatings from its plants in the US and Mexico. BASF will then close the plant in Decatur and the production line in Belvidere, which will be moved to PPG“s manufacturing site in Springdale, northeast of Pittsburgh, which currently employs about 220. The announcement came after PPG“s announcement that it would close plants elsewhere, cutting jobs and taking a pre-tax charge of about USD 160 million, or 65 cents per share, in the third quarter. PPG said the restructuring was designed to help the company save USD 100 million annually, and was intended to streamline operations as it integrates SigmaKalon and undergoes a global transformation. About 430 jobs will be eliminated through plant closings in Canada and the Netherlands, and job cuts at other coatings facilities in North America and Europe. The company will close a glass manufacturing plant in Ontario, Canada; idle a glass manufacturing line in Illinois; and write off idle assets in the glass and chemicals businesses.