PPG Industries (PPG) has wrapped up the sale of all the assets of its Mt. Zion glass manufacturing facility in Illinois to China-based automotive glass maker Fuyao Glass America Inc. The coatings giant announced the deal in Jul 2014.The financial terms of the deal were not divulged.
The Mt. Zion facility makes glass for use in residential and commercial construction markets. Fuyao has been PPG’s business partner for 13 years and the geographic proximity to major automotive manufacturers makes the Mt. Zion facility well suited for Fuyao’s automotive glass operation. Fuyao plans to rebuild and retrofit the plant’s two production lines to make automotive glass.
PPG Industries will continue to operate the plant for another year and will produce SUNGATE coated glass and clear glass. These products will be eventually made at the company’s other North American float glass manufacturing sites.
The divestment is in sync with PPG Industries’ strategy to focus on its higher-technology, coated glass capabilities for residential and commercial construction uses.
Glass coatings technology remains one of PPG’s major growth engines and the company plans to make further investments for the improvement of its current capacity and to expand its overall technical capabilities to make more advanced products.
Revenues from PPG’s Glass segment moved up 7% to $289 million in second-quarter 2014 on higher demand of fiber glass. Flat glass volumes rose on increased residential activity in North America.
PPG Industries is a Zacks Rank #3 (Hold) stock.
Other companies in the chemical space worth considering include LyondellBasell Industries NV (LYB), Celanese Corporation (CE) and Valhi, Inc. (VHI) with all carrying a Zacks Rank #2 (Buy).
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