PPG, Devold to form joint venture for North American wind energy turbine market
New company to make reinforcement fabrics for turbine blades in Shelby, N.C.PITTSBURGH, Dec. 1, 2006 –
PPG Industries (NYSE:PPG) and Devold AMT AS today announced they have signed a letter of intent to form a 50-50 joint venture to manufacture glass-fiber reinforcement fabrics for the North American wind energy turbine market.
Multiaxial and unidirectional fabrics are major components in windmill blades. They are also used in the manufacture of a variety of marine, construction and consumer products.
The new company, to be called PPG-Devold, leverages PPG’s infrastructure and position in the U.S. market and Devold’s investment in stitched reinforcement technology and customer relationships. The JV will include construction of stitched reinforcement fiber glass production lines at PPG’s wholly-owned fiber glass plant in Shelby, N.C. The venture will create jobs at the plant.
“The PPG-Devold partnership will strengthen PPG’s position as a major supplier of high-quality fiber glass products to the wind energy market, as well as our commitment to this market,” said Victoria M. Holt, PPG senior vice president, glass and fiber glass.
“This joint venture will help us to ensure our wind energy customers receive ample, high-quality reinforcement fabrics made of PPG fiber glass. By partnering with Devold, we will support one of our key reinforcement fabric channel partners while serving the rapidly growing wind energy market.”
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. “We strongly believe that our partnership with PPG will strengthen our position to grow both in existing and new markets.”
The transaction is expected to close by early 2007 and is subject to the negotiation and execution of definitive transaction documents, approval by the board of directors of Devold’s parent company, Hexagon, and regulatory approvals. Financial terms were not disclosed.
One of the world’s largest manufacturers of continuous-strand fiber glass, with 12 manufacturing facilities worldwide, PPG is focused primarily on the global electronics, thermoset, thermoplastics and general industrial markets.About Devold AMT AS
Established in 1992, Devold AMT was originated from a textile company started in 1853 in Alesund, Norway, for the manufacture of woolen products. Devold specializes in stitched reinforcements for the composite market and was acquired by Hexagon Composites ASA in 2000.About Hexagon Composites ASA
Hexagon Composites ASA is one of Scandinavia’s leading developers and producers of composites using advanced technology to commercially develop composite products. The company is listed on the Oslo Stock Exchange (ticker: HEX). Hexagon has four business areas: fiber reinforcements, composite LPG (long-period grating) containers, high-pressure containers and composite antennas. For further information visit www.hexagon.no
Pittsburgh-based PPG is a global supplier of coatings, chemicals, optical products, glass and fiber glass. The company employs more than 31,000 people and has 110 manufacturing facilities and equity affiliates in more than 20 countries. Sales in 2005 were $10.2 billion. PPG shares are traded on the New York, Pacific and Philadelphia stock exchanges (symbol: PPG). For more information, visit www.ppg.com
Statements contained herein relating to matters that are not historical facts are forward-looking statements reflecting PPG’s current view with respect to future events and financial performance. These matters involve risks and uncertainties that may affect PPG’s operations, as discussed in PPG’s filings with the Securities and Exchange Commission pursuant to Sections 13(a), 13(c) or 15(d) of the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder. Accordingly, many factors may cause actual results to differ materially from the forward-looking statements contained herein. Such factors include the potential inability of the parties to negotiate and complete definitive transaction documents, secure required approvals or consents or otherwise to complete the contemplated transaction in a timely manner, increasing price and product competition by foreign and domestic competitors, fluctuations in cost and availability of raw materials and energy, the ability to maintain favorable supplier relationships and arrangements, economic and political conditions in international markets, foreign exchange rates and fluctuations in such rates, and the unpredictability of existing and possible future litigation, including litigation that could result if the asbestos settlement discussed in PPG's filings with the SEC does not become effective. However, it is not possible to predict or identify all such factors. Consequently, while the list of factors presented here is considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. Unlisted factors may present significant additional obstacles to the realization of forward-looking statements.
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