PPG Industries
Pittsburgh, Pennsylvania/USA
www.ppg.com
PUBLIC COMPANY
YEAR ESTABLISHED: 1883
HEADCOUNT: 39,900 ; (2008: 44,900)
COATINGS REVENUES: 9.115 billion ; (2008: $10.935)
TOTAL REVENUES: $12.239 billion ; (2008: $15.849)
NET INCOME: $336 million ; (2008: $538)
R&D BUDGET: $403 million ; (2008: $468)
SEGMENT BREAKDOWN
• Performance Coatings: 34%
• Industrial Coatings: 25%
• Architectural Coatings EMEA: 16%
• Optical & Specialty Materials: 8%
• Commodity Chemicals: 10%
• Glass: 7%
KE Y PEOPLE
Charles Bunch, CEO and chairman; J. Rich Alexander, senior VP, performance coatings; Pierre-Marie De Leener, senior VP, architectural coatings EMEA and president, PPG
Europe; Charles Kahle, chief technology officer and VP,
research and development, coatings.
In 2009, coatings revenue for PPG fell to $9 billion, a drop of nearly $2 billion. Sales in the Performance Coatings segment—Aerospace, Architectural Coatings
Americas and Asia Pacific, Automotive Refinish and
Protective and Marine Coatings—decreased $621 million
or 13 percent in 2009. Sales declined as a result of lower
sales volumes, particularly in the automotive refinish business and architectural coatings—Americas and Asia Pacific
businesses. The volume decline in automotive refinish was
most pronounced in the U.S. and Europe, while the decline
in architectural coatings was mainly in the U.S. and Latin
America.
Sales in the Industrial Coatings segment—Automotive
Coatings, Industrial Coatings and Packaging Coatings—
decreased $931 million or 23 percent in 2009 due to lower
sales volumes, most notably in the automotive and industrial businesses, reflecting the severe decline in demand
resulting from the global recession. Volume declines in
the segment occurred in all major regions.
In the Architectural Coatings-EMEA (Europe, Middle East
and Africa), sales decreased $297 million or 13% in 2009.
PPG continued to expand its footprint in the Asia Pacific
region, which posted record earnings for the year and now represents approximately 18 percent of PPG’s coatings portfolio.
In 2009, PPG launched a cool roof color registration initiative with the Cool Roof Rating Council (CRRC) and the
Energy Star Cool Roof program. The initiative is
designed to help metal roof manufacturers expedite registration of their cool roof coating colors enabling them to
promote tax credits and meet “green” building criteria.
The initiative results from a modification Energy Star
Cool Roof recently made to its Cool Roof program, which
now accepts products registered with CRRC under its Color
Family Program. Under the CRRC program, PPG can reg-
ister a “representative” color in one of 17 standard color
families, provided it has met CRRC’s prescribed three-year
aged exposure criteria. New or additional colors within the
same color family can be added to the CRRC registry with-
out three-year test data as long as they meet CRRC’s ini-
tial ratings criteria for solar reflectance (SRV), thermal
emittance (TE) and color. PPG can then help metal roofing
manufacturers register these colors with CRRC and
Energy Star Cool Roof under their own company names.
Vacuum Metalized Coating
In 2009, PPG Industrial Coatings introduced VIVATI VM coatings, a highly
chromatic, high-performance vacuum metalized coating system that
delivers a new level of vibrant color to consumer products.
Vacuum metalized coatings are used to place a thin metal layer on
plastic substrates, and they decorate many smartphones, music players and other hand-held devices in bright, shiny colors. Vacuum metalized coatings also adorn toys, personal computers, automotive trim,
sporting goods, decorative fixtures and many other products.
PPG’s new vacuum metalized coating system represents a signifi-
cant advance in the industry. According to Andrew Stadler, global prod-
uct manager for PPG Industrial Coatings, “Manufacturers typically pur-
chase three coating layers—primer, base coat and clear coat—from
multiple suppliers. VIVATI VM coatings offer the first integrated system
from a single supplier.”
As a single-source coating system, Stadler said VIVATI VM coatings
enable manufacturers to more effectively manage the vacuum metalizing
process. “Because the primer, base and clear coats all come from one
supplier, they work together for performance and application and give
manufacturers a larger operating window with fewer mistakes and higher
production output. This helps to increase yields and expedite the launch of
new products and colors.”
Stadler added that vacuum metalizing operations using single-
source VIVATI VM coatings require less training than those using mul-
tiple suppliers, which can help manufacturers to reduce risk and
launch new products and new colors more quickly.
