PPG Sells European Fiber Glass Operations
By - admin on June 23, 2016 in News and Views
PPG announced that it has signed an agreement for the sale of its European glass operations to glass manufacturer Nippon Electric Glass Co. Ltd. (NEG) on June 20, 2016. Employee consultation processes, receipt of regulatory clearances and other customary closing conditions will determine the outcome of the final transaction projected to take place during the second half of 2016. Financial terms have not been disclosed.
Approximately 550 people are employed by PPG in its European fiber glass operations, which include manufacturing facilities in Hoogezand, Netherlands, and Wigan, England, and a research-and-development facility in Hoogezand.
In 2015, sales for PPG’s European fiber glass operations were approximately $150 million. PPG will continue to support the manufacturing operations with certain services, including bushing fabrication and engineering support upon completion of the transaction.
Reinforcement materials for thermoset and thermoplastic composite applications are currently manufactured at the European location. It serves the transportation, energy, infrastructure and consumer markets.
“As part of NEG, these European fiber glass operations will continue to provide innovative solutions in this industry,” said Viktor Sekmakas, PPG executive vice president. “Upon completion of the transaction, NEG will take ownership of a business in which PPG has consistently invested to drive innovation in fiber glass technology, resulting in high-quality products. PPG remains focused on serving the needs of our fiber glass customers throughout this transaction.”
Net cash proceeds from the transaction will be used for general corporate purposes, according to PPG.
