PPG Breaks Ground on Chinese Resin Plant

PPG Industries (NYSE:PPG) today held a groundbreaking ceremony for its first resin production facility in mainland China at the Zhangjiagang Yangtze International Chemical Industrial Park, Jiangsu province. Resins are key raw materials for paints and coatings, and the Zhangjiagang plant will supply other PPG plants throughout China, as well as automotive and industrial customers.

"As our 14th plant in greater China, the Zhangjiagang plant is another example of PPG's commitment to growth in China and in the coatings industry," said Charles E. Bunch, PPG chairman of the board and chief executive officer, who attended the groundbreaking ceremony. "This milestone is further proof of PPG's strategic emphasis on providing the best possible service to customers in the Asia/Pacific region, and it furthers our commitment to operating in an energy-efficient manner and with minimal environmental impact."

The Zhangjiagang plant will primarily produce water-based electrodeposition resins, which provide a more environmentally-responsible alternative to traditional resin products for use in automotive and general industrial coatings. The plant will span 60,000 square meters, and initial production capacity will be 27,000 metric tons. The plant is scheduled to begin operation in early 2011.

"The construction of the Zhangjiagang plant continues PPG's trend of entering developing regions as local market demand expands," said Viktor R. Sekmakas, president, PPG Asia/Pacific. "PPG was one of the first global coatings companies to invest in China, but today, the majority of resins used in PPG coatings production here are imported. This plant will supply regional PPG coatings plants with key raw materials of consistent quality, more quickly and at lower costs. Also, the central location of the Zhangjiagang industrial park strategically positions this facility to support future PPG growth in China."

Sekmakas said the facility will be "a model plant in Asia" in terms of its environmental features, and it will incorporate many of PPG's "green" building materials, such as low-volatile organic compound (low-VOC) coatings and low-emissivity glass. "PPG will design, build and operate this facility to meet high environmental standards, conserving energy, water and raw materials and integrating state-of-the-art pollution control measures," he said.

PPG currently operates resin facilities in the United States, Europe, Brazil, Australia, South Korea and Mexico.

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