PPG Industries, Inc. PPG has officially announced the completion of its $20 million on-site electrocoat coatings blending center at its resin manufacturing facility in Zhangjiagang, China. The new 37,500-square-foot center marks the company’s second e-coat blending operation in China along with the one in Tianjin. The facility adds production and blending capacity for high-performance cathodic electrocoat (e-coat) coatings.
Additionally, the new operation will enable PPG Industries to cater to growing demand from automotive-manufacturing and industrial customers who seek environmentally friendly coatings like waterborne e-coat products which abide by the Chinese environmental norms. The inauguration ceremony of the site was attended by nearly 100 guests, including local government officials, customer representatives, PPG executives and employees of the Zhangjiagang plant.
According to John Richter, PPG vice president of operations, coatings, Asia Pacific, strategically, China is among PPG’s most important market globally, and therefore, the company looks forward to meeting the rising customer demand there. Moreover, PPG Industries’ latest Zhangjiagang site has the potential for expansion as the company foresees stable economic growth in China, the world’s second-largest economy.
PPG Industries’ Industrial Coatings segment’s sales fell around 3% to $1.35 billion in the third quarter of 2015 as volume gains and contributions from acquisitions were more than offset by unfavorable currency impact. Automotive OEM coatings volumes rose by a mid-single-digit percentage, with growth witnessed across all regions.
PPG Industries currently carries a Zacks Rank #2 (Buy).
Other favorably ranked companies in the diversified chemical space include Koninklijke DSM N.V. RDSMY, Axiall Corporation AXLL and Stepan Company SCL. While Koninklijke sports a Zacks Rank #1 (Strong Buy), both Axiall and Stepan carry a Zacks Rank #2.
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