PPG Industries (NYSE:PPG) today announced that it has reached a
definitive agreement to sell substantially all the assets of its Mt.
Zion, Illinois, glass manufacturing facility to automotive glass
manufacturer Fuyao Glass America Inc. The sale is expected to close in
the third quarter 2014, subject to customary closing conditions.
Financial terms were not disclosed.
The Mt. Zion facility currently manufactures glass for use in
residential and commercial construction markets. Fuyao plans to rebuild
and retrofit the facility’s two production lines to manufacture
automotive glass. PPG will continue to operate the plant for up to one
year, producing SUNGATE(R) coated glass and clear glass. The production
for these products will eventually be shifted to PPG’s other North
American float glass manufacturing sites.
The sale of the Mt. Zion facility is consistent with the strategic
initiative by PPG’s flat glass business to focus on its
higher-technology, coated glass capabilities for residential and
commercial construction application.
“Glass coatings technology remains the engine of our growth and we plan
to make incremental technology investments in our facilities to improve
our current capacity for better-performing, low-e glass and to expand
our overall technical capabilities for newer, more advanced products,”
said Richard Beuke, PPG vice president of flat glass.
In regard to the Mt. Zion facility, Beuke added, “Fuyao has been PPG’s
business partner for 13 years and is a well-respected glass manufacturer
and fabricator. We look forward to an ongoing collaborative relationship
with Fuyao in North America as a PPG technology licensee. The Mt. Zion
facility is ideally suited for their automotive glass mission, given its
geographic proximity to major automotive manufacturers and history in
automotive glass production.”
PPG’s flat glass business unit manufactures high-performing coated
glass, tinted and clear float glass primarily for the residential and
commercial segments of the construction industry, as well as other
specialty glass markets. The Mt. Zion facility was built in 1959 and
converted for float glass production in 1978.
About Fuyao Glass America Inc.
Fuyao Glass Industry Group Co. Ltd. (FYG) is a leading international
manufacturer of automotive and industrial glass located in the People’s
Republic of China. The company has been listed on the Shanghai Stock
Exchange since 1993. It employs more than 19,000 people in China, Hong
Kong, America, Europe, Australia and Russia. Being the largest
automotive glass supplier in China, FYG controls over 60 percent share
of Chinese OEM market and over 30 percent share of Chinese replacement
market. FYG’s main customers are GM, Ford, Honda, Isuzu, Toyota, Mazda,
Audi, Volkswagen, Citroen, and Mercedes, to name a few.
PPG: BRINGING INNOVATION TO THE SURFACE.(TM)
PPG Industries' vision is to continue to be the world’s leading coatings
and specialty materials company. Through leadership in innovation,
sustainability and color, PPG helps customers in industrial,
transportation, consumer products, and construction markets and
aftermarkets to enhance more surfaces in more ways than does any other
company. Founded in 1883, PPG has global headquarters in Pittsburgh and
operates in nearly 70 countries around the world. Reported net sales in
2013 were $15.1 billion. PPG shares are traded on the New York Stock
Exchange (symbol:PPG). For more information, visit www.ppg.com
and follow @PPGIndustries
Statements in this news release relating to matters that are not
historical facts are forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995 reflecting the
company’s current view with respect to future events or objectives and
financial or operational performance or results. The forward-looking
statements contained herein include statements relating to the timing of
the transaction, future uses of the Mt. Zion facility and PPG’s future
plans for its flat glass business. Actual events may differ materially
from current expectations and are subject to a number of risks and
uncertainties, including changes in the timing of the transaction, the
failure to close the transaction, the future uses of the Mt. Zion
facility and the other risks and uncertainties discussed in PPG
Industries’ periodic reports on Form 10-K and Form 10-Q, and its current
reports on Form 8-K filed with the Securities and Exchange Commission.
Forward-looking statements speak only as of the date of their initial
issuance, and PPG Industries does not undertake any obligation to update
or revise publicly any forward-looking statement, whether as a result of
new information, future events or otherwise.
Bringing innovation to the surface is a trademark and Sungate
is a registered trademark of PPG Industries Ohio, Inc.
PPG Industries, Inc.
Mark Silvey, PPG Corporate
Morales, PPG Investor Relations, 412-434-3740
Source: PPG Industries, Inc.