PPG, Devold sign agreement for North American joint venture
New company to make reinforcement fabrics in Shelby, N.C., for wind turbine blades
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.
Pittsburgh-based PPG is a global supplier of coatings, chemicals, optical products, glass and fiber glass. The company employs nearly 34,000 people and has 124 manufacturing facilities and equity affiliates in more than 20 countries. Sales in 2006 were $11 billion. PPG shares are traded on the New York 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 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 Securities and Exchange Commission 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. Consequences of material differences in results compared with those anticipated in the forward-looking statements could include, among other things, business disruption, operational problems, financial loss, legal liability to third parties and similar risks, any of which could have a material adverse effect on PPG’s consolidated financial condition, operations or liquidity. All information in this news release speaks only as of Feb. 13, 2007, and any distribution of this news release after that date is not intended and will not be construed as updating or confirming such information.