-12 October 2007 -
PPG To Invest $50 Million in Tianjin Facility

Leading coatings manufacturer PPG Industries Inc said it will spend $50 million to expand output to 100,000 tons a year at its Tianjin, China, plant. The company plans to expand the Tianjin Economic and Technological Development Area (TEDA) facility from 40,000 to 100,000 square meters to meet the nation's growing demand for automotive and industrial coatings.

How the investment breaks out: PPG will spend $10 million on the new project in the first phase and around $40 million in the second. Total investment in the facility since its establishment is expected to reach $100 million, taking into account the most recent infusion. As a result, company principals said production capacity for automotive and industrial coatings will increase from 60,000 tons to more than 100,000 tons per year when the project is complete.

"Airbus, Motorola and some local automotive companies are PPG's key customers," said Viktor R Sekmakas, vice president of the company’s Asia-Pacific region. "The new project will address PPG's urgent need to expand production, better satisfy customer demand and help PPG to maintain its rapid development."

PPG will also set up a research and development center in the second phase at the Tianjin facility, focusing on environmentally friendly products and local services.

According to William A Wulfsohn, senior vice president of PPG, the Tianjin plant will continue to be PPG's largest production facility in the Asia-Pacific region. “Its success has given us continued confidence to invest in China as well as in the Asia-Pacific region," he said.

PPG called Tianjin an “important engine that has been driving our overall growth in China.” The company set up its coatings business in China in 1994, with the Tianjin facility marking its first investment in the nation. In September, PPG had revenue of $100 million for a single month, 23% of which came from the Tianjin area.