PPG sell fiberglass business Nippon Electric $545 mn

PPG to sell fibreglass business to Nippon Electric for $545 mn

6:28 AM, 29th May 2017
PPG to sell fiberglass business to Nippon Electric for $545 mn
PPG fiber glass has provided the composites industry with fiberglass reinforcements. Focusing on solutions and next-generation technologies.

PITTSBURGH, US: PPG Industries Inc (PPG) has entered into an agreement to sell its remaining fibreglass operations to Nippon Electric Glass Co Ltd (NEG).

The transaction is expected to close in the second half of 2017. Pre-tax proceeds from the sale are approximately $545 million, the company said.

In 2016, PPG completed the sale of its European fibreglass operations to NEG and divested its ownership interests in two Asian fibreglass joint ventures. PPG also completed the sale of its North American flat glass business in 2016.

The fibreglass operations to be sold now include manufacturing facilities in Chester, South Carolina, and Lexington and Shelby, North Carolina; and administrative and R&D operations in Shelby and Harmar, Pennsylvania.

The business, which employs more than 1,000 people and had net sales of approximately $350 million in 2016, supplies the transportation, energy, infrastructure and consumer markets.

“This transaction represents the end of PPG’s history as a manufacturer of fibreglass and is the final action in our disciplined, multiyear strategy to divest non-core businesses. Going forward, we will continue to focus on growing our paints, coatings and speciality materials businesses. I want to personally thank our fibreglass employees for their contributions and dedicated support of PPG, and wish them well as they establish the North American fibreglass business of NEG,” said Michael McGarry, chairman and CEO, PPG.

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