PPG Industries announced a restructuring plan that is expected to result in approximately US$100 million in pretax annual cost savings for the company. The restructuring initiative is part of PPG’s global transformation and the integration of its acquisition of SigmaKalon, completed Jan. 2. The company stated its intent to pursue restructuring actions in its latest 10-Q filing with the U.S. Securities and Exchange Commission. As part of the initiative, several PPG manufacturing units and facilities in the United States, Canada, and Europe will be impacted.
“The actions we are taking will streamline our worldwide manufacturing footprint and staffing levels following our recent acquisitions, the most notable of which is SigmaKalon,” said Charles E. Bunch, PPG chairman and CEO. “Elements of this initiative are part of our plan to achieve the cost synergies we set in acquiring SigmaKalon. We will also adjust our cost structure and better align it with geographic changes in our customer base, enabling us to maintain our competitive strengths in the end markets in which we participate.”
As part of the restructuring, PPG will close several coatings manufacturing facilities, including those in Clarkson, Ont., Canada, and Geldermalsen, Netherlands, which are anticipated to close in the second and third quarters 2009, respectively. The Geldermalsen closure will be implemented following consultation with the applicable works council. Other staffing reductions will occur in PPG’s coatings businesses in North America and Europe.
PPG also will close its Owen Sound, Ont., Canada, glass manufacturing facility in early 2009, and will idle one float glass production line at its Mt. Zion, IL, U.S., facility in the second quarter next year. Other actions will include writing off idle production assets in PPG’s fiber glass and chemicals businesses.
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