PPG to acquire BASF North American coil, extrusion coatings business
26 September 2008
PPG Industries is acquiring BASF's North American coil and extrusion coatings (COEX) business including inventory, customer list, patents and trade names for an undisclosed sum, which it plans to make at its Springdale plant.
PPG plans to invest $8 million in the plant to manufacture the products, that would add 55 to 60 jobs at the PPG plant, but woud lead to a closure of the BASF's Decatur plant that made these products and will affect about 125 workers, as the plant itself is not being acquired.
PPG's purchase also includes smaller BASF facilities in Belvidere, N.J., and Monterrey, Mexico, which will also be closed.The agreement does not include the COEX businesses of BASF SE in Europe, South America and Asia.
BASF will continue to supply products from Decatur, Belvidere and Monterrey under a manufacturing supply agreements for 11 to 12 months, after which BASF will close the Decatur facility and the Belvidere facility's Plastisol line.
BASF's North American COEX business serves the construction; appliance; transportation; heating, ventilation and air conditioning (HVAC); lighting fixture; and extrusion industries. The business operates manufacturing sites in Decatur, Ala., and Monterrey, Mexico, as well as a production line in Belvidere, N.J. The business employs approximately 200 people.
''PPG is intent on retaining the technical and sales capabilities of BASF,'' said William A. Wulfsohn, PPG senior vice president, coatings. ''As a result, the combination of BASF and PPG will better enable us to provide innovative technologies, high-quality products and superior customer service.''
Wulfsohn said the company is committed to ensuring that customers continue to receive excellent products and services while PPG and BASF work through the integration process.
Pittsburgh-based PPG is a global supplier of paints, coatings, chemicals, optical products, specialty materials, glass and fiber glass. The company has more than 150 manufacturing facilities and equity affiliates and operates in more than 60 countries.