17 May 2006
PPG to acquire Chinese manufacturer, distributor of architectural coatings
PITTSBURGH, May 15, 2006 – PPG Industries is expanding its presence in the Chinese architectural coatings market with today’s announcement that it has agreed to acquire certain assets of Shanghai Sunpool Building Material Co., Ltd., and its associated companies, including Shanghai IDI International Co., Ltd., and a group of businesses that manufacture and distribute coatings and building materials. Terms were not disclosed.
Often referred to as Sunpool in China, IDI is the sole distributor of Master’s Mark architectural paints by PPG, a premium brand available in major home centers in urban areas throughout the country.
“This acquisition will significantly enhance our distribution and manufacturing capabilities in China for both architectural and high-performance coatings,” said J. Rich Alexander, PPG senior vice president for coatings. “In addition, we are acquiring excellent brands that IDI-Sunpool has developed and sells to the retail, home center and dealer channels.”
The acquisition will include the O’need and Kaleidescope brands as well as certain manufacturing assets at IDI’s production facility and a network of warehouses throughout China.
Alexander said Xun Wang, who founded IDI in 1993, will join PPG as its managing director of architectural coatings in China.
“Her knowledge and experience, combined with PPG's resources, will enable us to accelerate our growth in this key emerging market," Alexander said.
Pittsburgh-based PPG is a major North American supplier of architectural coatings, manufacturing paints and stains under the Pittsburgh Paints, Olympic, Porter, Monarch and Lucite brands. PPG is also a global supplier of coatings for the automotive, aerospace, industrial and packaging industries. In addition, PPG manufactures glass, fiber glass and chemicals, with 110 manufacturing facilities and equity affiliates in more than 20 countries. Sales in 2005 were US$10.2 billion.
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About PPG：
PPG Industries Inc. was founded in 1883 in Pittsburgh, USA. As a global manufacturing enterprise, it produces and sells coatings, glass, fiber glass, and chemicals and holds a leading position in the above areas. Up to now, PPG has set up more than 108 production facilities that employ approximately 34,800 employees in 21 countries. PPG has been listed on Fortune 500 for 50 years and is world’s leading transportation coatings manufacturer, as well as World’s leading manufacturer of Industrial, aerospace and packaging coatings. According to Fortune, PPG ranked No. 1 in the “Global Most Admired”, chemical industries. For 2003 and 2004, PPG Tianjin was chosen as 10 of the“Best Employer in China” by Hewitt Consulting Firm and Harvard Business Weekly.
In China, PPG produces and sells seven major products, which includes automotive coatings, industrial coatings, automotive refinishing coatings, packaging coatings, aerospace coatings, architecture coatings, and fiber glass. There are 5 plants in Tianjin, Suzhou and Kunshan, and trading company, labs and training centers in Beijing, Shanghai, Suzhou, Guangzhou, Shenzhen and Nanjing. Now PPG has about 2000 employees in China.
In China, the main customers of PPG Automotive coatings include GM, Benz, Nanjing Iveco and Hainan Mazda. As for packaging coatings, PPG deals business with Coca Cola, Pepsi, Lu Lu, etc. PPG provides aerospace coatings to Boeing, Air China, Shanghai Air, Southern Air, etc. One thing that is especially meaningful is that Air China uses PPG coatings for all of its 3 color planes used for Beijing 2008 Olympic Games. Also, PPG provides its industrial coatings to Haier, Nokia, Motorola and Dell and its architectural coatings are widely used in many well-known buildings such as Tian Anmen square, Beijing airport, Shanghai Jinmao Building and Shanghai Oriental Pearl Tower.