PPG
Sales: $10.2 billion*
Expands global
coatings business
Company Facts:
PPG Industries, Inc.
One PPG Place
Pittsburgh, PA 15272 USA
Tel: (412) 434-3131
www.ppg.com
• 2007 SALES REVENUE: $10.2 billion
(2006 SALES: $6.3 billion)
• KEY PERSONNEL: Charles Bunch, chairman and
CEO; J. Rich Alexander, Sr. VP, coatings; William
Wulfsohn, Sr. VP,; Pierre-Marie De Leener, Sr. VP,
architectural coatings; Charles Kahle, VP, coatings
R&D; Dennis Kovalsky, VP, automotive coatings;
Thomas Mauck, VP, protective and marine coatings;
Michael McGarry, VP, coatings, and managing
director, PPG Europe; David Morris, VP, aerospace
coatings and sealants; John Outcalt, VP, automotive
finishes-Americas; Viktor Sekmakas, VP, coatings
and managing director, Asia-Pacific; Scott Sinetar,
VP, architectural coatings; Jorge Steyerthal, VP,
coatings, and managing director, Latin America;
Marc Talman, VP, packaging coatings.
• MAJOR PRODUCTS: Aerospace coatings, architectural coatings, automotive refinishes, automotive
coatings, industrial coatings, packaging coatings.
• 2007 ACQUISITIONS: Renner Sayerlack S.A. in
Brazil; ICI India; Barloworld Coatings Australia;
Netherlands-based SigmaKalon; and Champion
Coatings in the U.S.
In 2007, PPG set out to complete the
largest acquisition in its history
when it agreed to buy SigmaKalon
from private equity firm Bain Capital for
$3.2 billion. SigmaKalon Group,
Uithoorn, the Netherlands, produces
architectural, protective, marine and
industrial coatings and brought in sales
of approximately $2.7 billion in 2007.
The company has been focusing on
growth in Asia during the past four
years it has been owned by Bain Capital,
including a joint venture with Shanghai
IVY and the opening of a research center
in China.
PPG’s Performance
Coatings unit—
includes aerospace,
architectural and auto
refinish activities—
and its Industrial
Coatings unit—
includes automotive,
industrial and packaging coatings activities—together
reported $7.5 billion in sales and made
up 67% of PPG’s business.
With the acquisition, PPG’s coatings sales have increased sharply and
have given PPG one of the broadest
geographic reaches of any coatings
company in the world.
PPG further sharpened its focus on
coatings in 2007 by selling its fine
chemicals business, divesting its interest in a fiber glass venture and closing
a fiber glass facility. In addition, in
2008 PPG intends to divest its automotive glass and service businesses.
With the acquisition of SigmaKalon,
almost three-fourths of PPG’s sales
will come from coatings and more than
50% will come from outside the U.S.
While the sale of SigmaKalon to PPG
was not officially completed until Jan. 2,
2008, for purposes of this report we combined the two companies to better illustrate the consolidation in the industry.*
The protective, marine and industrial coatings businesses of SigmaKalon will be managed as part of
PPG’s existing coatings business. The
SigmaKalon architectural coatings
business in Europe, the Middle East
and Africa will be reported as a new
seperate segment known as Architectural Coatings-EMEA. This business represents approximately 75% of
SigmaKalon’s historical sales.
ACQUISITION HUNGRY
PPG continued to contribute to the
cosolidation of the coatings industry
beyond the SigmaKalon deal in 2007.
The company significantly extended its
architectural coatings business outside
of North America. In
January 2007, PPG
acquired the archi-
tectural and industrial coatings businesses of Renner Sayerlack, S.A.,
Gravatai, Brazil. In July of last year,
PPG acquired Barloworld Coatings
Australia, an architectural paint unit
of South African-based Barloworld,
Ltd. With this acquisition, PPG became
the largest coatings supplier in
Australia.
INVESTMENT IN CHINA
PPG is continuing to invest in new
facilities in China. In Southern
China, PPG opened an athletic
footwear coatings application center
and in Wuhu, in the Anhui Province,
PPG is constructing a new automotive coatings manufacturing plant to
serve China’s largest independent
automaker and one of the fastest
growing automakers in the world,
Chery Automobile Co., Ltd. The facility will be capable of coating more
than one million vehicles a year.
