PPG to acquire Chinese packaging coatings producer Bairun Chemical Co.
Will strengthen leading packaging coatings positions in China and Asia
PITTSBURGH, Oct. 19, 2010 – PPG Industries (NYSE: PPG) has reached an agreement to acquire Bairun, a privately-held packaging coatings company in Gaoming District, Foshan, Guangdong in southern China. Financial terms were not disclosed. The deal is expected to close during the current quarter.
Approximately 70 Bairun employees involved with sales, research and development, quality control, technical support, manufacturing and warehousing will transfer with the business.
“This acquisition will bolster PPG’s leadership positions in the Chinese and Asian packaging coatings industry,” said Viktor Sekmakas, PPG senior vice president, industrial coatings, and president, PPG Asia/Pacific. “This acquisition positions PPG to continue a history of strong growth in the packaging coatings business in a large and growing region. Furthermore, this acquisition fits with PPG’s global strategy to grow in coatings and specialty products, especially in emerging regions such as Asia/Pacific.”
“The addition of Bairun’s technology and solid position in two large segments in packaging coatings, the monobloc aerosol and tube (MAT) and lug cap, crown and general line (LCG) segments, complements PPG’s strength in the food and beverage can segment,” added Douglas Pegg, PPG vice president, packaging coatings. “It also provides us with manufacturing capability in southern China, which supplements our overall China capacity and improves customer logistics.”
PPG’s packaging coatings are used for containers for the beverage, food, cosmetic, pharmaceutical, paint and chemical industries.
PPG Industries’ vision is to continue to be the world’s leading coatings and specialty products company. Founded in 1883, the company serves customers in industrial, transportation, consumer products, and construction markets and aftermarkets. With headquarters in Pittsburgh, PPG operates in more than 60 countries around the globe. Sales in 2009 were $12.2 billion. PPG shares are traded on the New York Stock Exchange (symbol: PPG). For more information, visit www.ppg.com.
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