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® 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™
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 (ppg.com) has global headquarters in Pittsburgh and operates in nearly 70 countries around the world. Reported net sales in 2013 were $15.1 billion.
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.
Investors: Vince Morales, PPG Investor Relations
P: 412-434-3740 - E: vmorales[.]ppg.com.