PPG to Acquire BASF's Coil and Extrusion Coatings Business
PPG has reached an agreement with BASF Corp. to acquire its North American coil and extrusion coatings (COEX) business.
Published November 14, 2008
PPG has reached an agreement with BASF -corporation-107457/'>BASF Corp. to acquire its 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 construction; appliance; transportation; heating, ventilation and air conditioning (HVAC); lighting fixture; and extrusion industries. The business operates manufacturing sites in Decatur, AL, and Monterrey, Mexico, as well as a production line in Belvidere, NJ. The business employs approximately 200 people.
PPG will acquire BASF inventory, its 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 agreement for 11-12 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.
“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.”
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