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PPG to Acquire BASF North American Coil, Extrusion Coatings Business
Oct 2, 2008
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PPG Industries has reached an agreement with BASF Corp. to acquire that company’s North American coil and extrusion coatings (COEX) business. The agreement does not include the COEX businesses of BASF SE in Europe, South America and Asia.

BASF’s North American COEX business serves the appliance, HVAC, and other industries. The business operates manufacturing sites in Decatur, AL, U.S., and Monterrey, Mexico, as well as a production line in Belvidere, NJ, U.S. The business employs approximately 200 people.

PPG will acquire saleable BASF inventory, customer list and book of business as well as various patents and trade names associated with acquired products. 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.

Production from the Decatur and Belvidere operations will transfer to PPG’s Springdale, PA, plant, where approximately $8 million will be spent to install equipment needed for the consolidation.

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