PPG, Devold sign agreement for North American joint venture
New company to make reinforcement fabrics in Shelby, N.C., for wind turbine blades
RONG>SHELBY, N.C., Feb. 13, 2007 – PPG Industries (NYSE:PPG) and Devold AMT AS today signed an agreement here forming a 50-50 joint venture to manufacture glass-fiber reinforcement fabrics used in turbine blades for the North American wind energy market. The parties had previously announced their intention to form a joint venture.
The multiaxial and unidirectional fabrics are major components in wind turbine blades. PPG fiber glass is also used in the manufacture of various marine, construction and consumer products.
The new venture, PPG-Devold, leverages PPG’s infrastructure and position in the United States and Devold’s investment in stitched reinforcement technology, according to Victoria M. Holt, PPG senior vice president, glass and fiber glass. The joint venture will include construction of stitched reinforcement fiber glass production lines and generate new jobs at PPG’s wholly-owned fiber glass plant here.
“This joint venture will strengthen PPG’s position as a major supplier of high-quality fiber glass products to the wind energy market, and it illustrates our commitment to serving wind energy leaders working to develop alternative energy sources,” Holt said. “It also shows how PPG is finding new ways to serve end-use markets and continue our leadership in the fiber glass industry.”
By establishing manufacturing in the United States, Devold AMT “takes an important step toward becoming a global supplier to the wind energy industry,” said Johan Fausa, managing director, Devold AMT. “Our partnership with PPG will strengthen our position to grow in both existing and new markets, especially the world’s fastest-growing market in the United States.”
According to the Global Wind Energy Council, 22 percent of total new capacity added in 2006 was in North America (3,230 megawatts), with a total installed worldwide wind energy capacity of 74,223 megawatts at year’s end.
Officers of PPG-Devold LLC are Kåre Dybvik, chief executive officer, and Herbert Elder, president and operations manager. Financial terms of the agreement were not disclosed.